Sickness And Debt Go Hand In Hand
November 9, 2009 by admin · Leave a Comment
Summary:
Debt from sickness is one of the most commonplace causes of people seeking debt advice.
As throughout chronic illness people are unfit to earn or are dependant on social security, income shortfalls can exacerbate create debt problems in many ways. Stress resulting from debt is a leading contributing factor to health issues.
Examples of data people are asking enquiring about includes: Free Debt Management Schemes , Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), bankruptcy advice, administration orders, general money advice and budgeting advice, Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), administration orders, general finance management and budgeting, Free Debt Management Plans
Debt advisers generally spend more time with clients burdened with debt from ill health because they appreciate the particularly strenuous times they are experiencing. There aim is to release people from the strain of debt problems.
The reasons for debt in sickness are many and varied. The most common situations that lead to finance difficulties for those burdened by poor health are as follows:-
• The speed with which their income has fallen.
• When you are sick people tend to neglect finance issues and do not become debt proof.
• It can be more tricky to resolve debt issues with people whose health is deteriorating.
• Some clients get into money difficulties because they have increased costs related to their poor health.
• Respite care can be expensive.
• Debts can be stacked up due to the additional cost of transport for appointments.
• Repaying debts can dramatically reduce the family’s available funds and the reduction in profits due to sickness, makes the circumstances even worse.
• The illness may mean that carers have to be hired.
• The situation can be made all the worse if the income earner’s job is manual. It makes getting back to work slower.
• Similarly, problems related to mental health may force people to be off work for particularly long periods.
If you have to get a new job even more problems arise. Although there are strict employment laws in the UK, some people with ill health often have debt problems because they’re unable work normal hours. For those with chronic term health difficulties, dependency on state benefits will make their financial issues far more difficult to resolve. The problem is that many people suffering from poor health do not qualify for any benifits.
So what can be done? If you’ve already fallen behind on your bills, the debt inspector will normally suggest methods to pay off your arrears gradually, in parallel with your normal payments. And if you’re unable to meet these additional, you may be able to add them to your borrowing or postpone them for a while. It will generally depend on your credit history. So pay as much as possible each month. Keep up frequent payments even if you have to vary them as this demonstrates that you are committed then your lenders are more likely to treat you sympathetically and you could possibly reduce the arrears charges as well.
And please take our advice, never run from debt - please!
Where To Go For Debt Advice?
September 10, 2009 by admin · Leave a Comment
Summary
Are your debts worrying you? There is help for people attempting to balance their credit cards, loans and mortgage repayments. Don’t worry! It’s confidential, they will have heard it all before.
Where do you go for help with your debt problems? Millions and millions of people are running into problems with debt in the present financial recession. Citizen’s Advice (CA) has seen a unprecedented rise in people asking for their help in correlation with managing their mortgage repayments and other credit problems.
An additional source of free advice when it comes to debt, the Consumer Credit Counselling Service (CCCS) is reporting about 1,499 telephone calls each day, with Debt Advisory Centre saying their calls are up at least 66.66 per cent.
If you have debt concerns, you’re not by yourself. Read on to find out how much help is available.
For head to head contact, The Citizen’s Advice (CAB) has a wide number, well over four thousand, of Citizens Advice Offices spread all around the United Kingdom. Their staff work on unpaid basis, with many of the bureau’s having people who focus on debt.
If you ask them for help, what they will do, first of all, is to ask you to make out a list of the people you owe money to, what income you have and how much money you need to cover home costs. Armed with these figures, you will then be given an appointment to see an adviser. They will discuss everything with you, to see whether there may be a way that your income can be improved.
Whereas you may think you’ve covered everything, it is possible that there are benefits you are not receiving or you may have been supplied with an incorrect tax code and are subsequently paying too much tax.
You will then look together at the figures for outgoings to dind out if there might be any savings made. The Advisers will explain how to prioritize your debts. The main ones will be those concerned with maintaining a roof over your families head,for example rent or mortgage repayments, together with your heating bills,light and power and of course the council tax. Debts like loans, credit cards and store cards which may not be secured on your home come last on the list.
Your adviser will send you ’info pack’ containing letters for you to dispatch to the companies you owe money to.
Together with your advisor, you will assess your disposable income and create a repayment scheme to be negotiated with the companies on your priority list – Landlord, local authority, utility companies and mortgage company
Residual money after these essential costs and the expense will then be spread amongst the non-priority group. The Citizens Advice Bureau will always work with you to ask for the will assist you in asking for the associated charges and interest to be temporarily stopped , however this is not always successful.If the court becomes involved, as long as the offer is deem fair the courts often rule in favour of the defendants .
If there is any risk of repossession or court proceedings to recover debt, the Citizens Advice Offices will be extremely helpful.