28/10/05 -� Many disabled people 'forced into debt'

Disabled people are having to borrow money in order to pay for essential items, a study has suggested.

The Leonard Cheshire disability charity says that disabled people have lower incomes but often have extra costs associated with their impairment.

The result is that many people are being driven into "problem debt" - loans which they are unable to repay.

The charity is calling on the government and the credit industry to help to alleviate the burden of debt.

Hardship

Leonard Cheshire interviewed more than 50 people for its report, In the Balance.

It found that nine out of 10 of people found themselves running out of money on a regular basis.

More than half had annual incomes of less than �10,000 a year - a level which was unable to meet their basic needs.

Almost 40% of those surveyed were dealing with existing debt by taking on more borrowing. However, most said that lenders were inflexible when discussing repayments and showed little understanding of the way their disability affected their daily lives.

The report also documented the effect debt was having on people's well-being.

Most felt that it was having a negative impact on their health, and 12% said that they had contemplated suicide because of concerns over their financial situation.

While a lot of problem debt is associated with over-spending on luxury goods, Leonard Cheshire says that disabled people are borrowing to bridge the gap between their actual income and their cost of living.

Many disabled people have additional costs relating to their impairments for things such as electric wheelchairs, stairlifts and other home adaptations, extra heating costs, providing personal care and paying for physiotherapy and other treatments not normally available through the NHS.

Life change

Claire Holdstock was knocked off her motorcycle with her husband, Adrian, just after the birth of their first child.

She was left with a serious leg injury and is no longer able to work.

"The accident came completely out of the blue," she said.

"It was all such a shock - in that moment our lives were turned upside down."

Mr Holdstock had to give up work in order to care for his wife and small child.

This resulted in a dramatic fall in income and a growing debt problem.

The couple had a combined debt of �100,000 - an amount they could easily service when they were both working.

They spoke to their bank about reducing their monthly payments, which the bank readily agreed to.

First reported on the BBC News Website 26/10/05

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