Disability has several definitions – some policies define it simply as the inability to do your regular work. If you are unable to do your regular work in order to receive income, you may be suffering from financial problems. This is already a difficult time in your life, as there are many adjustments in your mental and physical state that must be made. Worrying about paying your accumulated debt—in addition to possibly racking up more due to medical bills—should not be an extra burden. The choice of whether or not to pay for therapy, instead of a credit card bill or car payment, should never have to be considered. If you’re disabled and unable to pay all of your expenses or struggling with high unsecured credit card debt, there are several different options to aid in your financial recovery.

Debt Consolidation

Debt consolidation is when you request a new loan, allowing all of your monthly debt payments to be accumulated into one single monthly payment at a lower interest rate. You may be collecting disability insurance, and this allows you to make one monthly payment, instead of trying to remember several due dates. Turning those timed payments into a single expense eases your stress and allows for simpler methods of financial renewal.

Debt Settlement

Debt settlement is a negotiation process involving you and your creditors to reduce or even defer monthly credit card payments. With the proper help, debt settlement assists you in avoiding bankruptcy by lowering your monthly payments, waiving late fees, reducing interest rates, and eliminating collection calls. Instead of making multiple monthly payments, one for each debt owed, this allows you to reduce and combine unsecured debt expenses into one lump sum, after which you can make a single monthly payment to the settlement company.

Bankruptcy

Bankruptcy may be the most drastic legal solution to debt relief and should be your last resort. There are many options for bankruptcy. You can file for bankruptcy yourself, with the assistance of web sites or do-it-yourself legal forms, although most experts recommend against this. A better option is to seek professional help from a lawyer or debt counselor to help you navigate the bankruptcy process. While bankruptcy is a difficult process to go through, it can also provide you a clean financial slate. One disadvantage to bankruptcy is that it shows on your credit report for several years after the fact, and could make it much more difficult for you to obtain credit in the future. Some professionals recommend filing for bankruptcy only when other options have failed.

If you have recently become disabled, you may be feeling overwhelmed, worried, and helpless. Resolving your debt may be the last thing on your list of priorities right now, but it can help you regain control of your life. Once you have taken action to clear up your credit card debt, you’ll be able to focus on the most important thing – your recovery.