Online Magzine-December Issue

How to take care of your debts/mortgage problems if you have been recently involved in an accident and your injury prevents you from working

Being involved in any accident or sustaining any injury can be a stressful time. When such circumstances prevent you from working you may have the added problem of coping financially. Where an accident or injury is sustained as a result of your employment then you should be able to claim statutory sick pay for a period of up to 28 weeks. If after this period you are still unable to work an application for long-term invalidity or disablement benefit can be made.

If you are making mortgage repayments check whether you are paying for payment protection insurance. Such policies will pay out after a deferred period of either one, three or six months and usually cover payments for a twelve month period. If you do not have such cover and you foresee a possible problem in being able to make repayments then you should advise your lender as soon as possible. This cannot be emphasised enough. It is likely that an agreement on repayments can be agreed.

Ignoring the situation could lead to problems with your lender. Because of the ‘credit crunch’ lenders are increasingly anxious about continuing arrears and the lack of contact with their borrowers. This could ultimately lead to the repossession of your home.

The same applies to those who pay rent to a landlord or local authority together with any council tax liability you may have. Being open with those you owe money to will hopefully resolve issues before they get out of hand.

If because of your inability to work your income is being stretched it would be helpful to draw up a budget. Sit down and work out any income you may have and the payments you have to make. If you use store credit cards and have an outstanding balance then you should stop using them as the interest charged at far higher rates than non-store cards. Consider different providers as you may get a better interest rate particularly on transferred balances.

If you can, pay all your utility bills by direct debit. Usually suppliers will offer discounts when this method is used and it saves the hassle of writing and posting cheques. At least you know payments are being made on time which should give some peace of mind.