Why,Our,Disabled,Are,Debt,Disa finance, share, loan Why Our Disabled Are in Debt


Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track


Disabled people often have lower average incomes and are left with the burden of having extra costs associated with their impairment such as medical and transport. This situation drives two out of five disabled people to seek loans and other forms of credit to meet the demands of higher living costs on a below-average income. The result is that many disabled people are being driven into ‘problem debts', which are often loans they are left unable to repay due to the difficulty in seeking employment and a reliable income. The Leonard Cheshire disability charity has asked the government and the credit industry to help alleviate the burden of this debt with so far little response. A survey by the charity found that nine out of 10 of people found themselves running out of money on a regular basis. It also found that more than half did not earn enough to meet their basic needs and were on incomes of less than £10,000 a year. Many also found it nearly impossible to change jobs or careers in order to earn higher, more appropriate incomes. Almost 40 per cent of those surveyed were dealing with existing debt by taking on more borrowing. However, most also said that lenders were not very flexible when discussing repayments and showed little understanding of the way their disability affected their daily lives. Leonard Cheshire said: "Whilst easy access to credit is part of the problem, for disabled people a significant amount of debt comes from essential purchases…this leaves disabled people particularly vulnerable to spiraling debt which they have little prospect of clearing." The report also documented the effect debt was having on people's well-being finding that most felt that it was having a negative impact on their health. Another 12 per cent said that they had contemplated suicide because of concerns over their financial situation. While problem debt is often associated with over-spending on luxury goods, Leonard Cheshire said that disabled people are borrowing to cover just their cost of living which is often much higher than their incomes plus the benefits they might receive. Many disabled people have additional costs relating to their impairments for things such as electric wheelchairs, stair lifts and other home adaptations including extra heating costs and personal care that is not normally available through the NHS. Leonard Cheshire is urging the credit industry and the government to make a number of changes, including making responsible lending a legal requirement, showing on the statement how long it would take to clear a credit card with the minimum monthly payment and asking lenders to write off some debts when a customer becomes disabled. Lenders are also being urged to not offer to raise credit limits unless a customer specifically requests it. The survey also found that living with high levels of debt often worsened a disabled person's sense of exclusion however, the situation is unlikely to change quickly while so many disabled people already rely on benefits as their main source of income. This article was written on the 27th June 2007. This article does not represent ‘financial advice’ as each persons individual requirements will be unique to their needs. If there is something in the article which you which to rely on then please check those details with any person from whom you purchase a term life policy at the time of purchase.

Why,Our,Disabled,Are,Debt,Disa

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