What Should You Do to Relieve Mounting Debt After a Truck Accident Injury

After a truck accident, you may be faced with mounting medical bills, lost income from missing work, and other unexpected expenses. This financial stress can feel overwhelming.

Here are practical strategies to help relieve debt and get your finances stabilized.

Prioritize Necessary Living Expenses

As you take stock of your finances, prioritize necessary living expenses to keep your family stable through recovery:

Housing costs – Your home or rent payment should take top priority. Missing payments can negatively impact your credit. Inform your mortgage company or landlord of your situation as soon as possible. There may be assistance programs or temporary arrangements available.
Medical care – Ongoing medical treatment is essential for your recovery. Make sure you attend all prescribed doctor visits, physical therapy, etc.
Insurance – Try not to let insurance policies like health, life, or disability insurance lapse. Call providers to explain hardship and request premium reductions or waivers.
Food, utilities, transportation – Scale back discretionary spending temporarily to reserve funds for groceries, utilities, car payments and insurance. You need to cover basic family necessities first.

Take Advantage of Assistance Programs

Some nonprofit organizations, charities, and government programs can help with medical debt or other financial setbacks. Some options to explore:

Medicaid
Prescription assistance.
Catastrophic injury funds.
Debt management plan.
Community groups.

Ask any organizations you seek help from about additional resources they’re aware of. There is often a network of support groups that can connect people in need with various assistance programs.

Negotiate With Creditors

Contact all creditors, lenders, and bill collection agencies to explain your accident situation. Ask if they’re willing to:

Lower or waive interest rates
Establish smaller minimum payments
Defer payments for a few months
Adjust due dates to better align with when you receive income

Clearly convey how the truck accident has impacted your ability to work and earn income. Provide documentation like doctor’s notes if requested.

If you have multiple medical bills, inquire if the healthcare providers would be willing to consolidate all balances into one combined bill. This simplifies payment tracking.

While not all creditors will agree to special arrangements, many understand extenuating circumstances and will try to work with responsible borrowers who’ve previously been in good standing.

If you had good credit pre-accident, emphasize your history of paying bills on time. Assure them you simply need some temporary adjustments while recovering, and intend to repay debts in full once you’re able.

Avoid Predatory Lenders

Payday loans, car title loans, and advance-fee loans should be avoided.

While these lenders market to people with poor credit or immediate money needs, the convoluted fine print often hides details like:

Triple-digit interest rates
Balloon payments
Fast default terms

Instead of helping, these predatory loans just create more unmanageable debt for borrowers already in financial crisis. Read terms closely and consider alternative assistance options instead.

Manage Personal Injury Settlements Wisely

Hopefully, the negligence claim from your truck accident will eventually result in a settlement or court-awarded damages for injuries sustained. These funds are intended to help cover losses and get your life back on track.

When you do receive an influx of money:

Pay down high-interest debts – Credit cards, payday loans, etc. should be the first priority, as they charge the highest interest rates and fees.
Replenish emergency fund – Build your savings back up so you have a buffer for future unforeseen expenses.
Invest settlement remainder – Consult a financial planner to invest leftover funds wisely. This money may need to cover future medical costs, lost earning capacity, etc. so it must last.

Be wary of friends, extended family, or even strangers who may come asking for handouts if they learn you received a sizable settlement. Politely decline requests and keep settlement details private to avoid this awkward situation.

Rebuild Credit

While late payments, collections accounts, and other negative marks on your credit may be unavoidable after an accident, you can take steps to start rebuilding your credit once your situation stabilizes:

Continue paying down balances – Get balances down to 30% or less of credit limits.
Keep accounts open – Having long-duration accounts helps score, even if limits are lowered temporarily.
Become an authorized user – Get added as an authorized user on a spouse or family member’s account to benefit from their good payment history.
Limit new credit applications – Apply for new credit only when absolutely necessary while rebuilding your score. Too many new accounts can lower the score.

With diligent financial management, your credit can rebound quickly. Within 18 months of paying bills on time and keeping balances low, many accident victims see credit scores return to pre-accident levels.

Adjust Future Budget Priorities

Once you’ve gotten back on your feet financially, reassess your lifestyle and budget priorities going forward. Having lived through a crisis can motivate changes like:

Increasing emergency savings
Reducing fixed costs
Prepaying debts
Reviewing insurance coverage

Building financial resilience against potential future setbacks will bring peace of mind. And if friends or family ever suffer similar situations, you can pay the support you received forward.

When to Hire a Personal Injury Lawyer

Navigating the legal claim process on your own after a truck accident can be extremely challenging, especially when simultaneously facing health and money struggles.

Consider hiring an experienced personal injury attorney if:

Injuries will require long-term medical treatment or leave permanent disability
The insurance company is pressuring you to accept a quick lowball settlement
Multiple parties may share liability (trucking company, parts manufacturers, cargo loaders, etc.)
You are struggling to document and prove economic + non-economic damages. For example, if you left the scene in an ambulance after a catastrophic trucking accident, finding and gathering evidence at the scene of the accident can be a challenge. An attorney can help out with this.

A qualified lawyer has successfully handled truck injury cases before and understands how to build strong claims. This takes the pressure off you and ensures experienced legal guidance.

Many personal injury firms work on a contingency fee basis, meaning you pay nothing upfront. Fees only come out of any final settlement or award amount. So there’s little risk in at least consulting with an attorney.

Create an Ongoing Financial Support Network

Healing physically and getting your finances back in order will take time after a catastrophic truck accident. Having an ongoing support network makes the process easier.

Identify family, friends, community groups, or professionals willing to provide certain types of assistance like:

Rides to medical appointments, pharmacy trips, etc. if you cannot drive due to injuries
Childcare: help with transporting kids to school, watching them after school, etc.
Meal trains where different people sign up to bring your family homemade meals on certain dates
Pet care: assistance with walking and feeding pets if injury limitations prevent you from caring for them
Financial guidance from a credit counselor or financial advisor as needed
Home maintenance: help with yard work, cleaning, and repairs that you cannot yet manage alone
Peer counseling through support groups that connect accident survivors dealing with similar trauma

Don’t be afraid to accept help. Most people genuinely want to ease difficulties for accident victims but don’t know how unless you specify certain needs.

Recovery Takes Time – Be Patient

It’s important to recognize that both physical and financial recovery after a catastrophic truck accident takes significant time. Give yourself ample room for the healing process.

Initially, simple tasks of daily life will be extremely difficult and frustrating. Support systems help share the load when your own strength and capability feel depleted.

Financially, it will also take years to recoup losses even after receiving an injury claim settlement or award. Be patient with the legal process and avoid jumping at quick settlements that don’t fully compensate your losses.

Read next: key areas to improve in your life