Debt from Disability

Specialist Debt Support Unit
Debt problems faced by those with disabilities are often a combination of circumstances associated with the disability and related to having a low income that often results from physical setbacks. This lack of income can greatly increase the vulnerability to debt that people with disabilities experience, as well as restrict their access to basic services of necessity.
It’s been highlighted in the past that people living with disabilities face financial difficulties as an inherent side effect of their physical restrictions. Disabled people with debt concerns specifically face the consequences for the fact that their problems tend to stay hidden unless they have a particular means by which to deal with these problems.
In the UK, disability includes a variety of unique circumstances leading to debt that can include:
- People with physical impairments that require medical equipment for daily living
- People with mental health conditions that affect their everyday life
- A wide variety of learning-related difficulties can hinder understanding of aspects of debt and finances
- There are many types of sensory impairment that people suffer that can restrict their daily activities
Reasons for Debt from a Disability
There are a huge number of situations and factors that can lead to debt problems for those who are disabled that affect their lives and those who provide them with help. Here are just a few things possibly influential aspects:
- In times of personal crisis, financial concerns go understandably neglected
- Cost of respite care can lead to or increase debt
- Disability transport costs can lead to debt
- Cost of hiring people to provide care if one’s family cannot
- Because financial concerns are not focused on, benefits may not be claimed as they should
- Those who offer unpaid care often reduce their own finances to do so and their quality of life suffers as they try to help meet the needs of another suffering from a disability
- Often there can be a sudden drop in income when benefits halt or at the onset of the disability as a job is lost or a career left behind
- Dealing with debt can be difficult for those who experience a decline in their mental or physical health due to the stress of the debt itself
- Debt repayments can wreak havoc on already limited and fragile income
The Connections Between Disabilities and Debt
A great majority of those seeking debt help related to disabilities are either disabled people themselves or those who offer care. Often, one or both of these types of individuals are at a low income level or living in poverty.
These situations mean that debt is created in one or more of the following ways:
* Typically, a combination of circumstances and factors lead to debt form disability
* Costly, recurring purchases of specific items that are required by a disabling health condition
* Not enough assistance from the benefits system or none at all
* Often dealing with a disability means high telephone bills and high fuel bills
* At the onset of a disability or serious illness, debt can be acquired quickly as a person adjusts to the changes in lifestyle
* Expenses associated with a disability can lead to debts
* There can be a frequent need to replace cruical furniture
* Alteration of accomodations may be required
* A move may be needed to have a situation with better accomodations for the disabled
* Bearing the cost of replacing items damaged by a child with behavioural problems
* Those unable to use public transport may need to travel back and forth from the hospital by expensive taxis
* Income changes for those who take on the responsibility of caring for a disabled person, often the benefits do not match a previously earned salary for the care taker
Job Options and the Employment Market for Those with a Disability
Many disabled people experience a rapid accumulation of debt as they go through the process of adjusting to a disability or chronic illness. Even for those who find employment, the smallest alteration or additional demand put on their income could trigger debt struggles. Another reality is that merely being disabled can keep people excluded from obtaining a job. Despite strict UK employment laws, disabled people can experience difficulties if they are unable to seek work or work average hours.
A change in income like the loss of benefits or the earnings of a partner can also trigger debt. For those depending upon benefits long term, debts can not only be difficult to deal with, but may reoccur, as well. Just because a person is in receipt of DLA (Disability Living Allowance) does not guarantee that other goods and services are somehow affordable. Many times a person’s entire benefits end up being used to repay debts or simply meet general bills of the household.
Deferring Payments on Debt from Disability
If you have a disability you may need help deferring bills you cannot avoid as well as expenses such as rent or a mortgage or even council tax, heating bills and other basic expenditures. It is a good idea to contact bank or building society managers to arrange your mortgage and explain your situation if you are struggling with mortgage repayments.
Often building societies are prepared to suspend your payments for a few months to give you a chance to sort out your finances. It is extra helpful if you can have a social worker explain your situation in a report to give it extra validity in their eyes. You can also seek to extend your mortgage term in order to pay less monthly or even get it arranged so that you make interest-only payments in order to reduce your monthly expenses. You can often seek help paying the interest on your mortgage from the Department of Social Security.
If you speak with your local council office you may be able to defer your council tax payments and even get in touch with your local gas, water, telephone and electricity providers if you are experiencing difficulty making payments for these essential services.
If you have a neighborhood Law Centre near you, they may be able to advise you on issues regarding repayments. Get in touch with the Law Centres Foundation to learn more.
The Impact from Disability-related Debt on Those Caring for Disabled People
Giving care to a disabled individual can be both emotionally and physically demanding, especially in cases where there is no additional support or respite care. It can be exceedingly difficult for those caring for the disabled person to reduce debt problems by seeking work because they are severely limited by the need to care for the person and lack appropriate and affordable alternatives to the care they provide, not to mention adequate support for the recipient of that care.
In many households, the lost of the person giving care’s income has been a primary cause for taking on debt. This is usually because the person providing the care must give it full time and can no longer work their previous job. This, then, leads to effects on the quality of life for both them and the disabled person they are providing care to.
The benefits income the disabled person is able to receive often sets the standard of living for their family or plays a large role in that aspect of family finances. In instances where the disabled person leaves the home or even dies, that loss of benefits can cause or worsen existing debt problems in a way that affects the entire family.
Mental Health Issues and Their Role on Disability-related Debt
Many people feel that the onset of depression, anxiety or other mental health problems begin the process of debt from disability. Those with previously existing mental health issues find that there can be serious consequences to coping with debt related stress. An unsympathetic and harassaing creditor, as an example, can really tax some people’s health and ability to cope. Beyond this, as horrific as it sounds, many dealing with mental health issues or other disability have been driven to the point of considering suicide simply out of a sense of alienation, helplessness and despair.
For some people, physical health issues have been worsened by anxiety over debt caused by illnesses. It’s extremely difficult to resolve debt when a person is already dealing with debt on top of mental health problems. It can make taking even the simplest steps to help one’s self excruciatingly difficult.
How Creditors Respond to Those with Disabilities Who Are in Debt
Creditor’s harassment, like barrages of telephone calls, ends up being not only damaging to the well-being of the disabled, but also extremely inefficient as a means of recovering debt. In some instances, the methods of debt repayment offered by creditors are not suited to people dealing with a certain impairment. Failure to provide adequate communication means or inaccessible buildings hinder a disabled person’s ability to negotiate with creditors, as well.
The means by which creditors help those in debt who face disabilities has a strong effect not only on the state of mind and sense of well-being for that person, but their very ability to resolve a debt issue. It has echoes that, in fact, affect all members of society in the UK.

Specialist Debt Support Unit

Debt problems faced by those with disabilities are often a combination of circumstances associated with the disability and related to having a low income that often results from physical setbacks. This lack of income can greatly increase the vulnerability to debt that people with disabilities experience, as well as restrict their access to basic services of necessity.

It’s been highlighted in the past that people living with disabilities face financial difficulties as an inherent side effect of their physical restrictions. Disabled people with debt concerns specifically face the consequences for the fact that their problems tend to stay hidden unless they have a particular means by which to deal with these problems.

In the UK, disability includes a variety of unique circumstances leading to debt that can include:

- People with physical impairments that require medical equipment for daily living

- People with mental health conditions that affect their everyday life

- A wide variety of learning-related difficulties can hinder understanding of aspects of debt and finances

- There are many types of sensory impairment that people suffer that can restrict their daily activities

Reasons for Debt from a Disability

There are a huge number of situations and factors that can lead to debt problems for those who are disabled that affect their lives and those who provide them with help. Here are just a few things possibly influential aspects:

- In times of personal crisis, financial concerns go understandably neglected

- Cost of respite care can lead to or increase debt

- Disability transport costs can lead to debt

- Cost of hiring people to provide care if one’s family cannot

- Because financial concerns are not focused on, benefits may not be claimed as they should

- Those who offer unpaid care often reduce their own finances to do so and their quality of life suffers as they try to help meet the needs of another suffering from a disability

- Often there can be a sudden drop in income when benefits halt or at the onset of the disability as a job is lost or a career left behind

- Dealing with debt can be difficult for those who experience a decline in their mental or physical health due to the stress of the debt itself

- Debt repayments can wreak havoc on already limited and fragile income

The Connections Between Disabilities and Debt

A great majority of those seeking debt help related to disabilities are either disabled people themselves or those who offer care. Often, one or both of these types of individuals are at a low income level or living in poverty.

These situations mean that debt is created in one or more of the following ways:

* Typically, a combination of circumstances and factors lead to debt form disability

* Costly, recurring purchases of specific items that are required by a disabling health condition

* Not enough assistance from the benefits system or none at all

* Often dealing with a disability means high telephone bills and high fuel bills

* At the onset of a disability or serious illness, debt can be acquired quickly as a person adjusts to the changes in lifestyle

* Expenses associated with a disability can lead to debts

* There can be a frequent need to replace crucial furniture

* Alteration of accommodations may be required

* A move may be needed to have a situation with better accommodations for the disabled

* Bearing the cost of replacing items damaged by a child with behavioural problems

* Those unable to use public transport may need to travel back and forth from the hospital by expensive taxis

* Income changes for those who take on the responsibility of caring for a disabled person, often the benefits do not match a previously earned salary for the care taker

Job Options and the Employment Market for Those with a Disability

Many disabled people experience a rapid accumulation of debt as they go through the process of adjusting to a disability or chronic illness. Even for those who find employment, the smallest alteration or additional demand put on their income could trigger debt struggles. Another reality is that merely being disabled can keep people excluded from obtaining a job. Despite strict UK employment laws, disabled people can experience difficulties if they are unable to seek work or work average hours.

A change in income like the loss of benefits or the earnings of a partner can also trigger debt. For those depending upon benefits long term, debts can not only be difficult to deal with, but may reoccur, as well. Just because a person is in receipt of DLA (Disability Living Allowance) does not guarantee that other goods and services are somehow affordable. Many times a person’s entire benefits end up being used to repay debts or simply meet general bills of the household.

Deferring Payments on Debt from Disability

If you have a disability you may need help deferring bills you cannot avoid as well as expenses such as rent or a mortgage or even council tax, heating bills and other basic expenditures. It is a good idea to contact bank or building society managers to arrange your mortgage and explain your situation if you are struggling with mortgage repayments.

Often building societies are prepared to suspend your payments for a few months to give you a chance to sort out your finances. It is extra helpful if you can have a social worker explain your situation in a report to give it extra validity in their eyes. You can also seek to extend your mortgage term in order to pay less monthly or even get it arranged so that you make interest-only payments in order to reduce your monthly expenses. You can often seek help paying the interest on your mortgage from the Department of Social Security.

If you speak with your local council office you may be able to defer your council tax payments and even get in touch with your local gas, water, telephone and electricity providers if you are experiencing difficulty making payments for these essential services.

If you have a neighborhood Law Centre near you, they may be able to advise you on issues regarding repayments. Get in touch with the Law Centres Foundation to learn more.

The Impact from Disability-related Debt on Those Caring for Disabled People

Giving care to a disabled individual can be both emotionally and physically demanding, especially in cases where there is no additional support or respite care. It can be exceedingly difficult for those caring for the disabled person to reduce debt problems by seeking work because they are severely limited by the need to care for the person and lack appropriate and affordable alternatives to the care they provide, not to mention adequate support for the recipient of that care.

In many households, the lost of the person giving care’s income has been a primary cause for taking on debt. This is usually because the person providing the care must give it full time and can no longer work their previous job. This, then, leads to effects on the quality of life for both them and the disabled person they are providing care to.

The benefits income the disabled person is able to receive often sets the standard of living for their family or plays a large role in that aspect of family finances. In instances where the disabled person leaves the home or even dies, that loss of benefits can cause or worsen existing debt problems in a way that affects the entire family.

Mental Health Issues and Their Role on Disability-related Debt

Many people feel that the onset of depression, anxiety or other mental health problems begin the process of debt from disability. Those with previously existing mental health issues find that there can be serious consequences to coping with debt related stress. An unsympathetic and harassing creditor, as an example, can really tax some people’s health and ability to cope. Beyond this, as horrific as it sounds, many dealing with mental health issues or other disability have been driven to the point of considering suicide simply out of a sense of alienation, helplessness and despair.

For some people, physical health issues have been worsened by anxiety over debt caused by illnesses. It’s extremely difficult to resolve debt when a person is already dealing with debt on top of mental health problems. It can make taking even the simplest steps to help one’s self excruciatingly difficult.

How Creditors Respond to Those with Disabilities Who Are in Debt

Creditor’s harassment, like barrages of telephone calls, ends up being not only damaging to the well-being of the disabled, but also extremely inefficient as a means of recovering debt. In some instances, the methods of debt repayment offered by creditors are not suited to people dealing with a certain impairment. Failure to provide adequate communication means or inaccessible buildings hinder a disabled person’s ability to negotiate with creditors, as well.

The means by which creditors help those in debt who face disabilities has a strong effect not only on the state of mind and sense of well-being for that person, but their very ability to resolve a debt issue. It has echoes that, in fact, affect all members of society in the UK.

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