Disabled Debt Help

Climbing your way out of debt is difficult for anyone, but if you are disabled the situation can seem even more difficult. Paying down your credit card debt is impossible without job prospects. However, you may be hopeful to know that there are laws to protect disabled people from credit card companies as well as grant opportunities and debt settlement programs.

Lawful Protection

When a person defaults on their credit, creditors may take the person to court and win a settlement, garnishing the wages of the person in debt; if the person who defaulted is disabled, then creditor has fewer options to collect what they are owed.

While creditors may still garnish your wages after winning the settlement they are not legally allowed to take pensions, deposits from Social Security or disability benefits. If you receive some or all of your income from one of these programs, you can continue receiving this income free from the hands of collection agencies.

Try Government Grants

FederalGrantsWire.com (see reference below) lists federal grants which are available as long as you qualify. Browse FederalGrantsWire.com and click on a grant that best fits your dilema. The link will explain all of the prerequisites or conditions to apply. Also browse ADA.gov and read the Americans with Disabilities Act for more information about grants for disabled persons as well as a full explanation of disabled persons' rights.

Even though it is not easy to receive federal grants, you may apply for as many as you like. Many disabled people do not apply even though there are millions of dollars worth of grants available, so many grants go unused.

How to Settle Debt

Even if your income is protected, you may be able to participate in a debt settlement program. Halt paying your debts in order to begin the debt settlement process. Your creditors then must consider lowering your debt or the interest rates or not receive any of their money at all.

Your credit score may suffer, but it could help you avoid bankruptcy and financial ruin. As a last resort, you can hire a debt consolidation company which will negotiate directly with your creditors for lower interest rates. This can be expensive but it may be better than dealing with your creditors alone.

If you decide to negotiate yourself, make a list of your debts along with the principle and interest. Calculate what you can afford to pay, and call your creditors to begin the negotiation process. You may receive offers from them in which you will asked to pay a lump sum, but consider what you can afford and continue to make counter offers until you reach an agreement you can afford.