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Long-Term Disability Benefits: How to Manage Finances after an Injury

When you’ve been injured, life can change dramatically, temporarily or permanently. A decreased income can often lead to a lot of financial stress, making recovery more difficult. There are a few things you can do to ease the stress.

Create a Budget

There are two steps to this. First, create a budget that outlines all of your current expenses. Then, create a budget that works for your new, reduced income. Look at the first budget to see which, if any, of your current expenses can be immediately cut.

Refinance or Ask for a Forbearance on Your Mortgage

If you own your own home, refinancing may reduce your monthly mortgage payment. If refinancing isn’t an option, or wouldn’t make enough of a difference, consider asking for a forbearance. This would allow you to stop making mortgage payments entirely for a period of time that both you and your lender agree to. After that period of time, you would resume payments, while adding some extra money to each payment or paying a lump sum to catch up for the missed payments.

Consider a Lawsuit or Settlement

Depending on the severity of your injury and who is at fault, you may need to hire a lawyer to help you determine whether you should sue or settle your case. Look for lawyers who are qualified with your type of injury to ensure that you don’t settle for less. A broken leg is a pretty straightforward injury, with standard bills and recovery times. A traumatic brain injury, on the other hand, can have varied recovery times and multiple severities. In the latter case, an experienced traumatic brain injury lawyer would ensure that you didn’t settle for less than that kind of injury is worth. Getting professional help from the right avenue is worth the time.

Take Advantage of All Financial Programs Available to You

Unemployment, disability insurance, even government assistance in the form of Medicaid or food benefits may be available to you. These benefits can help supplement your reduced income while you recover or wait for your lawsuit or settlement to finish. There may be paperwork involved, but many times, these programs can provide just enough financial assistance to ease the burden.

Recovering from an injury takes time, and depending on the severity, you may find that your life is permanently changed. It’s important to take things one step at a time and not overwhelm yourself trying to solve everything at once. The steps listed here will give you breathing room as you consider how to adjust to your new normal.