Debt Due to Illness: How Debt Rescue Can Help
Financial hardship can affect anyone, with unexpected illness and medical costs being one of the major debt triggers in Australia. Falling behind on repayments can be a stressful and isolating experience, but you don’t need to go through it alone. Debt Rescue can help get your finances back on track.
Protect Your Finances In Case of Unexpected Illness
Millions of people have seen their finances damaged by poor health. Without a plan in place, an unexpected loss of income caused by illness can have a long-lasting effect on your finances. Illness can strike at any moment, and not having a plan in place for this could be a dangerous risk to take. Addressing the question of ‘what would I do if…’ is critical. Having honest conversations with family members about how you would cope financially in the event of unexpected ill health or even worse is vital, making plans to address any gaps in protection.
It’s important to:
- Talk about worst-case scenarios with your family
- Review your plans when life changes
- Look at the long-term
- Boost your savings when you get the chance
Steps to Take if You're in Debt Due to an Unexpected Illness
Make a Budget – It’s important to track your spending during these difficult financial times. If you don’t have a budget already, now is the time to create one. Be sure to list all incoming and outgoing expenses to see where you can make adjustments to spending or try to cut back.
Look at Income Protection Insurance – While it’s hard to predict when illness or injury will strike, you can do your best to protect your income. This is also where income protection insurance would be a good idea. The peace of mind it provides in an emergency is worth every dollar.
Create an Emergency Fund – Try to create your own financial backup plan by building an emergency fun. Financial experts recommend you save 3 months worth of salary in a high-interest account to use in case of an emergency. This amount might seem excessive, but you know you will be covered financially for at least 3 months if anything ever happened to you.
Consolidate Debts – If you have a mortgage, you can consolidate unsecured debts into your home loan. This reduces your debt repayments and interest, saving you money in the long-term.
Our professional team understands each person’s circumstances are different, which is why we offer a wide range of solutions which can be tailored to meet your needs.