Debt from Ill Health is More Common Than You Think

One of the more common problems that people end up finding themselves in debt due to is ill health. Unfortunately, the stress from debt also ends up being a contributing factor to health problems which creates something of a circle of negative effects.

Some of the common methods of UK debt management which may help solve ill health debt problems are:

1 – IVA (Individual Voluntary Arrangement)

1 – Debt Management Plan

3 – Protected Trust Deed (for residents of Scotland)

4 – Bankruptcy

There are so many reasons that people experience debt due to ill health. Here are a few reasons that you might not have thought of:

- In times of illness, finances are often understandably neglected

- A sudden drop in income is not unusual since it may lead to a loss of work

- The cost of tranport for treatment can increase debt

- The cost of respite care can also raise debts

- Situations of deteriorating health from illness due to the process of handling debt in the first place can make dealing with the debt even more difficult

- Food required for special diets or medicines needed to treat illness can lead to debt

- Ill health can force clients in physical labour jobs to lose work or stop working entirely

- Making payments on debts can drastically reduce the disposable incomes of those suffering illness

- Care service cost can sabotage the budgets of those with ill health

- Mental health related issues may mean those suffering are unable to work for significant periods of time

Job Options for Those Suffering Ill Health and the Employment Market They Face

Debt problems can pile up quickly as a person adjusts to the onset of ill health. Even those who can find employment, if they have a small income change or an extra demand placed on that income, they could find themselves in a debt problem. Merely being in ill health can also keep people from being able to get a job. Despite strict employment laws in the UK, people suffering from illness many times have difficulties because they are unable to work standard hours.

Debts from ill health can also occur when a there is a change in income due to the loss of a benefit or a partner’s earnings. Those suffering from illness who have a long term dependency on benefits it can be even more difficult to resolve this debt, especially fi they are receiving disability benefits and essentially at the mercy of the government for their income.

In the UK, the problem for some people who struggle with debt due to ill health is that they do not qualify for any Disability Living Allowance (DLA) due to technicalities in the law.

This can be a real struggle for those battling illness, but depending upon your payment history and whether your ill health is prone to be long or short term, you can sometimes get your lender to agree to:

- The lender may agree to reduce your payments over a period of time you both agree to

- The lender may charge interest for a shorter period of time if you have a repayment mortgage instead of having you pay both capital and interest

- The lender may extend your mortgage’s term in order to lower your payments

- The lender may offer you a ‘payment holiday’

Some reasons that people end up in debt can be:

- General financial over commitment

- Poverty

- Loss of work

- Illness

- Breakdown in their relationships

Debt and Illness – What if You Are In Debt Already?

Depending on your track record of making payments in a timely manner, if you have fallen behind then your lender can suggest ways to pay off the arrears gradually along with your usual payments. If you are unable to meet the extra payments you may be able to have them either delayed temporarily or added onto your loan.

You will want to pay as much as you can afford each month because keeping up with your usual payments (even if they are not in full) proves you are committed to repaying what you owe. If you can prove you are committed then your lender is likely going to be more sympathetic to your plight and possibly minimise the arrears charges, as well.

Some anonymous case studies (to protect personal identities in this sensitive aspect of life) regarding debt for those who suffer from ill health are featured below along with some examples of situations that cause this type of debt:

- Debt from ill health affects people’s emotional states by compounding severe stress

- Ill health renders many people unable to work

- Debt can be linked to uncontrollable physical conditions such as epilepsy

- Debt is often linked to suicide

Debt From Epilepsy

This is the case of a woman who bought a car with hire purchase whom we will refer to as Laura. Right after purchasing this car her doctor diagnosed her with epilepsy and Laura could no longer drive. Obviously, she decided she would need to sell this car. Upon informing her finance company of this decision, they told her she would not be able to sell the car privately and that, instead they would sell the car on her behalf then let her know what the remaining balance she owed would be. Later, the company informed Laura that she owed £8,000 plus £3,000 in insurance premiums for policies that could not be cancelled even though they covered risks related to not being able to pay on her loan even though this insurance was to be discharged. As you can see this situation would be incredibly difficult to cope with, not to mention highly unfair, but these are real life situations that people like Laura in the UK face when struggling with debt from ill health.

Ill Health Leaves Man Unable to Work

This case involves a man whom we will call Robert who lived on a very small income and therefore used credit cards in an effort to meet his basic essential needs. This results in £25,000 in unsecured debt on a total of six separate credit cards. Robert became unable to work due to his poor health, becoming more and more stressed by the debt accumulating due to this. He suffered a breakdown specifically tied to his inability to repay on his debt. Robert’s situation is also not unusual in the UK, sadly.

Debt Leads to Emotional Problems

A woman whom we will call Harriet had a hire purchase agreement for a car purchase. After two and a half years she defaulted after becoming temporarily unemployed. Harriet now lives with her parents and has a job once again. After becoming involved in a car accident that resulted in a fatality, Harriet was left with severe emotional trauma. On top of this, her mother suffers from ME. Harriet now must go to court due to defaulting on repayments, but three months after her default, she and her parents were receiving an average of twenty calls per day between 6am and 9pm. This greatly exacerbated Harriet’s emotional problems and her mother’s condition, as well. Once again, situations such as this are not entirely uncommon in the UK.

Debt Stress and Its Ties to Suicide

As extreme as it may seem on the surface, one man who we’ll call Phillip, lost his job because of ill health. He had several low debts that were not high priority. Despite this, Phillip was called frequently from highly aggressive debt collectors until he felt extreme distress and actually attempted suicide. Phillip’s situation represents the emotional state of many people who get in over their heads with debt they never expected to take on in the first place or believe they would be easily able to repay until a drastic, unexpected change in their finances took place..

A Brief List of How Debt Impacts People’s Lives

- Creditors are not always sympathetic about genuine tragedies debtors are faced with

- Some people are unable to cope, feeling as though they are in crisis and their health is subsequently affected

- Family arguments arise over debt and the strain it puts on families

- Some people seek treatment for stress, anxiety and depression related to the strain debt puts on their health

- The stress from debt and ill health leaves some unable to get and hold down jobs

- Debt stress can affect mental health and change people’s lifestyles towards unhealthy habits

If you are facing debt, whether from ill health or not, you owe it to yourself and your family to seek out a solution that can help you. You can learn more about Debt Management Plans or IVAs (Individual Voluntary Agreements) online or, if the situation you face is extremely dire, learn about Bankruptcy.

You need quality advice from an expert professional. Don’t hesitate to get the help you need because no one wants to see you enduring situations such as those described above.

Debt from Ill Health is More Common Than You Think

One of the more common problems that people end up finding themselves in debt due to is ill health. Unfortunately, the stress from debt also ends up being a contributing factor to health problems which creates something of a circle of negative effects.

Some of the common methods of UK debt management which may help solve ill health debt problems are:

1 – IVA (Individual Voluntary Arrangement)

1 – Debt Management Plan

3 – Protected Trust Deed (for residents of Scotland)

4 – Bankruptcy

There are so many reasons that people experience debt due to ill health. Here are a few reasons that you might not have thought of:

- In times of illness, finances are often understandably neglected

- A sudden drop in income is not unusual since it may lead to a loss of work

- The cost of transport for treatment can increase debt

- The cost of respite care can also raise debts

- Situations of deteriorating health from illness due to the process of handling debt in the first place can make dealing with the debt even more difficult

- Food required for special diets or medicines needed to treat illness can lead to debt

- Ill health can force clients in physical labour jobs to lose work or stop working entirely

- Making payments on debts can drastically reduce the disposable incomes of those suffering illness

- Care service cost can sabotage the budgets of those with ill health

- Mental health related issues may mean those suffering are unable to work for significant periods of time

Job Options for Those Suffering Ill Health and the Employment Market They Face

Debt problems can pile up quickly as a person adjusts to the onset of ill health. Even those who can find employment, if they have a small income change or an extra demand placed on that income, they could find themselves in a debt problem. Merely being in ill health can also keep people from being able to get a job. Despite strict employment laws in the UK, people suffering from illness many times have difficulties because they are unable to work standard hours.

Debts from ill health can also occur when a there is a change in income due to the loss of a benefit or a partner’s earnings. Those suffering from illness who have a long term dependency on benefits it can be even more difficult to resolve this debt, especially fi they are receiving disability benefits and essentially at the mercy of the government for their income.

In the UK, the problem for some people who struggle with debt due to ill health is that they do not qualify for any Disability Living Allowance (DLA) due to technicalities in the law.

This can be a real struggle for those battling illness, but depending upon your payment history and whether your ill health is prone to be long or short term, you can sometimes get your lender to agree to:

- The lender may agree to reduce your payments over a period of time you both agree to

- The lender may charge interest for a shorter period of time if you have a repayment mortgage instead of having you pay both capital and interest

- The lender may extend your mortgage’s term in order to lower your payments

- The lender may offer you a ‘payment holiday’

Some reasons that people end up in debt can be:

- General financial over commitment

- Poverty

- Loss of work

- Illness

- Breakdown in their relationships

Debt and Illness – What if You Are In Debt Already?

Depending on your track record of making payments in a timely manner, if you have fallen behind then your lender can suggest ways to pay off the arrears gradually along with your usual payments. If you are unable to meet the extra payments you may be able to have them either delayed temporarily or added onto your loan.

You will want to pay as much as you can afford each month because keeping up with your usual payments (even if they are not in full) proves you are committed to repaying what you owe. If you can prove you are committed then your lender is likely going to be more sympathetic to your plight and possibly minimise the arrears charges, as well.

Some anonymous case studies (to protect personal identities in this sensitive aspect of life) regarding debt for those who suffer from ill health are featured below along with some examples of situations that cause this type of debt:

- Debt from ill health affects people’s emotional states by compounding severe stress

- Ill health renders many people unable to work

- Debt can be linked to uncontrollable physical conditions such as epilepsy

- Debt is often linked to suicide

Debt From Epilepsy

This is the case of a woman who bought a car with hire purchase whom we will refer to as Laura. Right after purchasing this car her doctor diagnosed her with epilepsy and Laura could no longer drive. Obviously, she decided she would need to sell this car. Upon informing her finance company of this decision, they told her she would not be able to sell the car privately and that, instead they would sell the car on her behalf then let her know what the remaining balance she owed would be. Later, the company informed Laura that she owed £8,000 plus £3,000 in insurance premiums for policies that could not be cancelled even though they covered risks related to not being able to pay on her loan even though this insurance was to be discharged. As you can see this situation would be incredibly difficult to cope with, not to mention highly unfair, but these are real life situations that people like Laura in the UK face when struggling with debt from ill health.

Ill Health Leaves Man Unable to Work

This case involves a man whom we will call Robert who lived on a very small income and therefore used credit cards in an effort to meet his basic essential needs. This results in £25,000 in unsecured debt on a total of six separate credit cards. Robert became unable to work due to his poor health, becoming more and more stressed by the debt accumulating due to this. He suffered a breakdown specifically tied to his inability to repay on his debt. Robert’s situation is also not unusual in the UK, sadly.

Debt Leads to Emotional Problems

A woman whom we will call Harriet had a hire purchase agreement for a car purchase. After two and a half years she defaulted after becoming temporarily unemployed. Harriet now lives with her parents and has a job once again. After becoming involved in a car accident that resulted in a fatality, Harriet was left with severe emotional trauma. On top of this, her mother suffers from ME. Harriet now must go to court due to defaulting on repayments, but three months after her default, she and her parents were receiving an average of twenty calls per day between 6am and 9pm. This greatly exacerbated Harriet’s emotional problems and her mother’s condition, as well. Once again, situations such as this are not entirely uncommon in the UK.

Debt Stress and Its Ties to Suicide

As extreme as it may seem on the surface, one man who we’ll call Phillip, lost his job because of ill health. He had several low debts that were not high priority. Despite this, Phillip was called frequently from highly aggressive debt collectors until he felt extreme distress and actually attempted suicide. Phillip’s situation represents the emotional state of many people who get in over their heads with debt they never expected to take on in the first place or believe they would be easily able to repay until a drastic, unexpected change in their finances took place..

A Brief List of How Debt Impacts People’s Lives

- Creditors are not always sympathetic about genuine tragedies debtors are faced with

- Some people are unable to cope, feeling as though they are in crisis and their health is subsequently affected

- Family arguments arise over debt and the strain it puts on families

- Some people seek treatment for stress, anxiety and depression related to the strain debt puts on their health

- The stress from debt and ill health leaves some unable to get and hold down jobs

- Debt stress can affect mental health and change people’s lifestyles towards unhealthy habits

If you are facing debt, whether from ill health or not, you owe it to yourself and your family to seek out a solution that can help you. You can learn more about Debt Management Plans or IVAs (Individual Voluntary Agreements) online or, if the situation you face is extremely dire, learn about Bankruptcy.

You need quality advice from an expert professional. Don’t hesitate to get the help you need because no one wants to see you enduring situations such as those described above.