Millions of Australians have struggled to make debt repayments over the last 12 months, according to research by the Australian Securities and Investment Commission's (ASIC) Moneysmart program.

The rising cost of living, reduced income, and unexpected expenses were the top reasons cited by the 1,061 respondents to a recent YouGov survey for running into financial difficulty.

Unemployment, borrowing too much money and medical situations were also listed among the reasons people had missed a repayment in the last 12 months.

The survey found that 47 per cent of Australian adults with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months.

And over the coming 12 months, more than half of Millennials surveyed said they expected to experience financial difficulties.

Under Australian law, anyone experiencing difficulty in making debt repayments is entitled to request assistance from their lender.

But three in 10 of those surveyed said they would rather sell their belongings or assets or take on a second job before asking for financial hardship assistance from their lender.

"For many Australians, the path to seeking help feels daunting, confusing, and challenging," ASIC Commissioner Alan Kirkland said.

"If you are worried about being able to make your repayments, you're entitled to ask your bank or lender for help.

"If you aren't happy with your bank or lender's response, make a complaint and, if that doesn't resolve the issue, contact the Australian Financial Complaints Authority."

In a separate ASIC report, released in May, the regulator found mortgage hardship notices over the final three months of 2023 were 54 per cent higher than the same period a year earlier.

But home finance lenders made it so difficult to get help, that about a third of those who asked for assistance dropped out.

Nearly all survey respondents who have experienced financial difficulties also reported losing sleep, stress and anxiety or a decline in their physical health.