Debt can be risky if you have a disability since it’s harder to work and earn income to repay your debt, and the risks are higher. These are serious financial difficulties that most Canadians encounter at some point in their life. However, when you are borrowing funds for people with disability, your situation can be even more challenging.
The cost of living for people with disabilities is often higher than that of people without disabilities because they may require specialized equipment, services, and accommodations to live independently or to work. This can make it more difficult to find affordable lines of credit.
For people with disabilities, using credit to help finance their education or start a business can be beneficial. But, at the same time, they need to be aware of the potential risks to avoid financial difficulties in the future.
Borrowers with disabilities are more highly leveraged than the average consumer. As a result, they may need to borrow more to pay back their credit card balances. This increased leverage is because they typically have lower incomes and are less likely to have an inheritance, a pension, or any other source of funds to pay off their debts.
The Importance of Credit to Those Who Are Disabled
Access to credit can mean the difference between living a full and active life or living more and more in isolation. For example, some people with disabilities are dependent on public transit, making it difficult to go shopping or visit friends. Others find themselves increasingly reliant on family members and friends for help as they age.
The difference between making ends meet and going into debt is often the ability to access credit so that you can make purchases or investments. For example, many people take out lines of credit, such as a car loan or credit card, to pay for a new piece of equipment, new technology, or a travel experience.
Of course, credit is not only needed to fund such purchases. Credit can also be used to buy a home, pay for transportation, start a small business or pay for other everyday expenses.
For many, the Option to Use Credit Isn’t a Choice; it’s a Necessity
For some people with disabilities, avoiding debt is impossible. Credit is helpful for those who need to borrow money and cannot rely on other sources of income or savings. Credit cards, lines of credit, and loans are all available to people with disabilities. For some, a credit card is essential for ensuring that they can buy groceries or pay the rent. Credit lines can be crucial for paying for important expenses such as medication and medical supplies.
However, there are risks associated with borrowing money, and for people with disabilities, the risks are often higher. If you have a disability, you may find yourself in a situation where you have to make payments on a credit line even if you are not sure how you will repay it. However, the consequences of not paying can lead to a lifetime of financial difficulties that can negatively affect your quality of life.