Have you been ill for a long or suffering from any temporal disability? You may be out of the regular source of income due to your long-standing ailment. Apparently, the burden of debts increases, making you incapacitated for repayments.
A situation like that may seem frightening to you with no way out at all! But like every problem has a solution, this too can be resolved with smart financial decisions. This article well-explains how to come out of multiple, long-term debts without panicking.
First, make an assessment of your debts
Your sickness and substantial medical expenses may have forced you to land into debts. But now is the time to get rid of this burden by streamlining all your debts. Start by assessing all your outstanding debts – the interest rates, tenure of each, monthly instalments, etc. Also, note how much of your monthly outgoings do the makeup, and don’t forget to keep a tab of the loans that are about to end recently.
Find out whether you are entitled to any sick pay
You must establish the possibilities of income you have in case you fall ill or become disabled. If you haven’t figured it out yet, it’s time to speak to your office. Be acquainted with the statutory sick pay you are entitled to. Those who have worked for a minimum of specific weeks are eligible for sick pay for up to 28 weeks.
If you have two or more jobs, you can claim statutory sick pay from each employer. You need to note that this sick pay is an income for which you have to pay income tax on a timely basis.
Besides sick pay, you may also be entitled to company sick pay. In your working period, you must be aware of the sick leaves and sick pay. These are more generous options than statutory sick pay, so it will be beneficial for you to check the contract beforehand.
Plan for the debt consolidation loan
With too many existing loans, it becomes difficult to keep a tab of all the monthly instalments. A smarter option here is to obtain a loan for debt consolidation. It helps to combine multiple debts into a single one, which means you will take a loan that will cover all your existing debts.
Once you take this loan of a larger amount, you will start paying a single monthly instalment instead of multiple different instalments at various times. There are numerous benefits of debt consolidation loan, which are –
- Easier to manage payment deadlines
- Lower interest rate
- Less risk of collateral repossession
- Having a regular fixed payment amount
- Stress reduction
- Less monthly expenditure has gone to debt repayment
- Can improve credit score
Enjoy the benefits of Employment & Support Allowance
Those who have been receiving statutory sick pay for more than 28 weeks and those who couldn’t meet the requirements are entitled to some excellent benefits.
You will receive an SSP1 form in that case. Filling up this form will enable you to claim Employment and Support Allowance.
Depending on your illness, disability, sickness, and other individual circumstances, you may also gain some additional benefits. Don’t forget to evaluate all the available allowance when you fall sick.
Manage the possibilities of your income
If you are falling sick, you don’t need to miss all the possibility of earning. Based on the changing situation, there may be other ways to maintain the same.
For example, you may switch to freelancing instead of going to an office. It means you will have to work the exact amount and be paid the same salary; the only exception will be in the working environment.
Besides, you should also look for an income tax rebate if you find your income is dropping substantially. Otherwise, you can approach some charities that offer grants in the specific situation to make life a little less demanding for sick people.
Other ways to save money during illness
- Reduce monthly bills and rents
- Apply for a discount on your council tax bill to take into account your changed circumstances
- Check out the local schemes, from which you can avail of free travel allowance, free parking through Blue Badge, etc.
- Find out whether your disease makes you eligible for free prescriptions – in England, cancer patients are exempt from paying for prescriptions
Can you now manage the long-term debts?
With these ideas in mind, it will be easier for you to deal with the long-term debts that occurred because of your ailments and disability. Just keep in mind not to panic at the time of crisis. You can come out of every economic crisis if you can make wise financial decisions.
Description – Find here the best ways to manage your multiple monthly installments and debts, which the illness or disability has caused, you are suffering from.