| Disabled people have lower incomes but often have | | | | financial situation.While problem debt is often |
| extra costs associated with their impairment. This | | | | associated with over-spending on luxury goods, |
| situation drives two out of five disabled people to seek | | | | Leonard Cheshire said that disabled people are |
| loans and other forms of credit to meet the demands | | | | borrowing to cover just their cost of living which is |
| of higher living costs on a below-average income. The | | | | often much higher than their incomes plus the benefits |
| result is that many people are being driven into | | | | they might receive.Many disabled people have |
| 'problem debts', which are often loans they are left | | | | additional costs relating to their impairments for things |
| unable to repay.The Leonard Cheshire disability charity | | | | such as electric wheelchairs, stair lifts and other home |
| is calling on the UK Government and the credit industry | | | | adaptations including extra heating costs and personal |
| to help alleviate the burden of this debt. A survey by | | | | care that is not normally available through the |
| the charity found that nine out of 10 of people found | | | | NHS.Leonard Cheshire is urging the credit industry and |
| themselves running out of money on a regular basis.It | | | | the UK Government to make a number of changes, |
| also found that more than half did not earn enough to | | | | including:· Making responsible lending a legal |
| meet their basic needs and were on incomes of less | | | | requirement which all lenders must comply with |
| than £10,000 a year. Many also found it nearly | | | | · Showing on the loan statements how long it |
| impossible to change jobs or careers in order to earn | | | | would take to clear a the lending with the minimum |
| higher, more appropriate incomes.Almost 40 per cent | | | | monthly payment |
| of those surveyed were dealing with existing debt by | | | | · They want talks with the lenders to persuade |
| taking on more borrowing. However, most also said | | | | lenders to be willing to write off debts when a |
| that lenders were not very flexible when discussing | | | | customer becomes registered disabled |
| repayments and showed little understanding of the | | | | · Lenders being prohibited to raise a customer's |
| way their disability affected their daily lives.Leonard | | | | credit limit unless the customer specifically requests |
| Cheshire said: "Whilst easy access to credit is part of | | | | it.The charity's survey also found that living with high |
| the problem, for disabled people a significant amount of | | | | levels of debt often worsened a disabled person's |
| debt comes from essential purchases...this leaves | | | | sense of exclusion.The situation is unlikely to change |
| disabled people particularly vulnerable to spiraling debt | | | | while so many disabled people already rely on benefits |
| which they have little prospect of clearing."The disability | | | | as their main source of income. It also highlights the |
| charity's report also documented the effect debt was | | | | necessity for the Government to review the level of |
| having on people's well-being. It found that most felt | | | | benefits available for the disabled. If they genuinely |
| that it was having a negative impact on their health | | | | cannot survive on the money being provided, then |
| and another 12 per cent said that they had | | | | more money must surely be found. |
| contemplated suicide because of concerns over their | | | | |