Dealing With Debt When You are Ill
If you are coping well in paying your creditors and then suddenly become ill and your income reduces, what should you do? Well, like I say with all debt issues, do not hide away and hope everything will get better! If you are sick for a couple of days, then there will probably be no major problem with your income. However, should you become ill for a longer period of time and your income reduces, then you should act immediately and inform your creditors. If you are in a Debt Management Plan, IVA etc, then you should let those companies know that you will not be able to make the full monthly payments to them. In return, they should advise you on what to do next and they should also immediately inform your creditors of the situation.
Sickness and Your Own Debt Management Plan
If you are dealing with your own Debt Management Plan, you should still inform all the creditors immediately of the problem. If you are doing your own Debt Management Plan, then you will need to do a revised full financial fact find on your current situation and then forward this to the creditors with a revised offer of payment. You will also need to ensure that your monthly standing orders to them are reduced, to reflect what your new offer of payment to them will be. It is also advisable not only to ring them and inform them of the situation, but also immediately write to them with your full financial fact find and also any additional evidence of your current situation. So, do make sure that if you have any medical evidence that you include a copy of the relevant facts for your creditors to see. Remember, a debt collection agency has heard every excuse in the world!
Sickness and Your Credit Cards and Lenders
If you are not in any debt trouble, but suddenly find yourself in a financial predicament, then you will still need to contact all your card companies and other lenders. If you have been a good customer, then the lender should be very reasonable and sympathetic to your situation. Ring the creditors and explain to them that sickness is causing you to have financial difficulties. Lenders in general are happy to accept lower payments for a short period of time, they may even reduce the interest on your cards or loans for that period (do ask them about this!). There are also occasions where lenders will also allow you to take a payment holiday for X number of days or months. The lender may also request that you provide additional documentation as evidence, so do keep sick notes and other documentation and send them a copy. Whilst you are discussing this with them, also confirm whether or not this will have an effect on your credit rating?
If I Get Coronavirus (COVID-19)What Should I Do About My Debts?
Should you be in the unfortunate Position to get Coronavirus (COVID-19) and encounter financial problems, then you should, as discussed above in this post, contact your creditors or debt administrators immediately, informing them of your situation. Your creditors will make a note of your situation on their systems, but may request additional evidence be sent to them. You really only need to do this, if you think that you will not be able to make full monthly payments to them.
Loss of Earnings Because of Coronavirus (COVID-19)
It would seem that if you catch Coronavirus (COVID-19) or suspect that you have the virus, there appears to be a policy of self isolating for 14 days. So for some people this could be a situation where you will be without sufficient funds for that 14 day period (maybe more, as I am no expert on the virus). If you think that it will cause you financial difficulty, then do not hide, inform your creditors and maybe some of the advice above will help you through a period of sickness. For information about Coronavirus (COVID-19) then click on then link, as there is Government information that may be of use to you.
Debt Advice Handbook Recommendation
If you are looking for good sound debt advice, then I would recommend the Debt Advice Handbook (click on link), as it does cover most debt scenarios. Packed with advice and legal solutions to your debt problems.