More than half of the population feels that debt is the significant reason for causing health problems. However, studies have found that people with health problems are three times more likely to fall into a permanent cycle of debt. Everyone needs to take out a loan once in life, for instance, to finance a big expense like buying a home and it is not a problem as long as you borrow after mulling over your repayment capacity.
Research has revealed that convenient access to loans have encouraged as many borrowers to apply for a short-term loan as possible. From 12 month payday loans to mortgages, the lenders have noticed a drastic surge in loan applications. Data revealed that unemployment has been the prominent reason for banking on the debt, with 25% under 25 age group people and 22% for those between 25 and 39. Senior citizens are more likely to fall in debt because of physical sufferings.
The situation was so critical that 71.1%, the largest proportion among 1546 clients surveyed by StepChange, reported that they suffered from insomnia while 70.4% experienced fatigue. 65.9% experienced headaches and 42.1% complaint about tensed muscles. The number of people with complaints of anxiety and stress are rising with each passing year. One-third of young people are failing to make their ends meet including 10% of young people who are badly off because of stagnant monthly pays and rise in inflation.
Young women are more likely to face financial problems than young men. More than 50% are concerned about the future followed by 40% who are concerned about their mental health. To date, whereas Brexit has caused alarm bells ringing and inflation has hit the income, around 50% people including senior citizens have visited their general practitioners due to physical and mental illness. Further, 5% ended up with emergency care.
The relationship between debt and health problems
Debt works in your favour as long as you manage to pay back on time. Missed repayments eat up your budget and push you on the verge of debt web. The research has reported that people with debt are more than two times likely to suffer from health problems than those living without debt. Inflation, unemployment and age account for missed repayments, which not only add in late payment fees but also pull your credit score. Once your score has gone down, you are unlikely to get the deal at low interest rates.
Here is how debt takes a toll on your health problems:
Decrease in income/increase in spending → Inability to pay bills Penalties Amplifying stress and anxiety due to rise in debt → Deteriorating your health
Insurance coverage does not cover most of the medical bills due to which you turn to a direct lender. Inability to recuperate from illness causes you to keep taking out the loans to finance your medical bills. Well, if you want to whittle down your medical debt, you should follow the tips below:
Get a clear insight into your health insurance coverage
Medical emergencies can pop up any time therefore you should know what kind of bills your insurance coverage includes and what kind of documents you need to have to get the claim. Rude awakening scenarios are very common among people when they encounter medical emergency.
A preferred pharmacy
Preferred pharmacies provide prescribed drugs at lower cost than standard pharmacies. If you are buying a drug covered by the preferred pharmacy, you will get it for reduced price. With this network, you can save almost hundreds of pounds.
Have an emergency cushion
Try to build up an emergency cushion if you do not want to take out a loan to meet you medical expenses. If you already know in advance that you will need a medical treatment for a certain period, you should start setting aside money.
Take advice from health and social care professionals
Sometimes the pressure of debt keeps you from recuperating. If you are anxious due to being in red, you should try to take expert advice from health care professionals. They do not just prescribe you drugs but also counsel you how to tackle the pressure of debt with calmness. First off, they will try to figure out what triggered you to take out the loan, for instance, illness, low income, unemployment etc. Then, they will talk to you about debt. If you will be juggling with multiple debts, they will refer you to debt advisors who will help you to understand your financial problem, the best way to create a budget, the best possible deal to consider reimbursing the debt. They will also help you in negotiating with loan companies so that you can get out of it as soon as possible.
The bottom line
The best way to avoid debt spiral is to brace yourself for emergency beforehand. As you know unexpected expenditure can crop up anytime and no one can dodge from being their victim, it is better if you set aside money with full dedication and determination. If you have already had some money, you could avoid relying on the loan. Even a small amount of emergency cushion can help you from falling into debt problems. Further, try to take the loan from a reputed direct lender like London Loan Bank who provides loans at lower interest rates. If you feel that you are running out of money, talk to your lender immediately to seek the alternative to get rid of it.