People with disabilities often have unique challenges. One of the biggest challenges is money.
The “disability employment gap” refers to the fact that a lot of disabled people are unemployed. The unemployment rate for people with disabilities in 2025 was 8.3%. This is more than double the rate for people without disabilities. Their rate was 3.7% during the same time.
This challenge and others can cause a lot of debt. But it isn’t hopeless. People with disabilities can take steps to recover and improve their finances.
Disability and Financial Vulnerability
Financial vulnerability is common for people with disabilities. They often don’t have enough money to pay for unexpected costs or recover from them. Unexpected costs are normal when someone has a special need.
Not having enough money can make it hard to pay for housing, food, medical care, and other important things. These things affect health and survival.
Not having these resources can cause more financial problems. Not having a healthy financial plan can cause a downward spiral. This can lead to bankruptcy, poor health, and needing help from family and friends. It’s sad that people who need the most help often have very high living costs.
There are many reasons why disabled people have money problems more often. Here are some reasons why they are more at risk:
Underemployment
Underemployment means working fewer hours than you want. It also means working in a job that doesn’t use your skills. This is common for people with disabilities.
Luckily, there are programs to help disabled people who are underemployed:
- The National Disability Institute offers a free financial coaching program for people with disabilities.
- The Association of People Supporting Employment First (APSE) is a national group that helps disabled people find jobs.
- The Equal Employment Opportunity Commission (EEOC) enforces laws that prevent job discrimination against applicants and employees based on disabilities.
- The Office of Disability Employment Policy (ODEP) works to help disabled people find jobs. ODEP offers resources and support to people, businesses, and service providers.
- The Job Accommodation Network (JAN) gives information and advice to workplaces. They help them provide accommodations for people with disabilities.
Lack of Access to Financial Institutions
People with disabilities are less likely to have a bank account. The National Library of Medicine says that more people with disabilities are “unbanked” than people without disabilities.
Not having access to banks can make it hard for disabled people to save money, pay bills, and build credit. It can also make them easier targets for financial scams.
Fixed Income and Low Wages
People with disabilities often live on fixed incomes. This could be from social security disability insurance, supplemental security income, or other sources. This can make it hard to pay for basic needs for themselves or their families.
Also, people with disabilities often have lower incomes. This is because there are fewer jobs available for them. They’re also less likely to have access to good-paying jobs. This means their financial abilities are limited.
Increased Cost of Living
Inflation and the rising cost of living have affected everyone. But it can be especially hard for disabled people to make ends meet.
Medical Debt
Medical debt is the main cause of bankruptcy in the United States. So, it’s not surprising that extra medical costs greatly increase debt for people with disabilities.
Luckily, there are medical debt relief options that can help. For example, many hospitals offer financial aid programs for those who can’t pay their bills.
If you or someone you know has a disability, you may be able to get help through programs like Medicaid or Medicare. You can also find ways to lower costs. For example, you can use prescription assistance programs or negotiate with your medical providers.
Inaccessible and Unaffordable Transportation, Housing, and Support
People with disabilities often face transportation, housing, and support services that are not accessible or affordable. This makes it hard to work or join activities outside the home. This can lead to isolation and mental health problems.
Fortunately, there are some programs and services can help with these issues:
- The Social Security Administration (SSA) offers two programs for people with disabilities: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). The SSDI program is for people who have worked for a certain number of years and have become disabled. The SSI program is for low-income people who are disabled or over 65 years old.
- USA.gov has information on government programs and services that can help the disabled. The housing help page has information on accessible and affordable housing options.
- The National Housing Trust Fund provides money to build and keep affordable housing for low-income people. This includes people with disabilities.
Recognizing Scams
Many companies say they can fix your debt. But not all of them are real. These scams can hurt disabled people by costing them time and money. It’s important to know the warning signs and protect yourself. This will protect your personal finances from these scammers.
Warning Signs
The more you know about the different scams that target people with disabilities, the better you can prevent them. The Consumer Financial Protection Bureau says there are some warning signs that a company or person may be scamming you:
- IRS or government scam: Someone pretends to be from a government agency or collection company. They ask for personal information, like your Social Security number or bank account information. They may also threaten legal action if you don’t pay them.
- Words of advice: The IRS and the government will never ask for personal information over the phone. If you are worried the call is real, hang up and call the agency. Check if the call is real or fake.
- Fake debt relief scam: A company offers to help you pay off your debt for a fee. They may ask for your bank account information. They may also ask you to pay upfront. Once they have your money, they’ll disappear, and you’ll still be in debt.
- Words of advice: It’s illegal for a debt relief company to ask for fees upfront. If they do, they are trying to steal your money.
- Counterfeit cashier’s checks: You get a check for more money than you’re owed. The scammer asks you to wire them the extra money. The check is fake, and you will be responsible for the money you wire them.
- Words of advice: Never wire money to people you don’t know. Once you send it, you can’t cancel it.
These are just some warning signs to help you avoid scams. Remember, never give your personal information to someone you don’t know or trust.
Resources That May Reduce Financial Vulnerability
People with disabilities face many financial challenges. So, there are several resources available to reduce financial stress:
ABLE Accounts
ABLE savings accounts, or Achieving a Better Life Experience savings accounts, allow the account holder, family, friends, or special needs trust to add money tax-free.
Supplemental Needs Trusts
A supplemental needs trust is a legal agreement. It lets someone else control how money is spent for a person with disabilities. This does not affect their eligibility for government benefits. This type of trust can cover things like housing, transportation, medical expenses, and education.
Medicaid Waivers
Medicaid waivers are programs that give services and support to the disabled. They help them live independently in their own homes or communities instead of institutions. Each state has different Medicaid waiver programs.
Katie Becket Waivers
The Katie Becket Waiver program gives in-home and community services. It helps children with disabilities live at home with their families.
their asset limits. This has helped the financial security of people in those states.
Temporary Disability Programs
Temporary programs help disabled people who can’t work. Examples are SSI and SSDI. These programs can provide income support. If you’re approved for benefits, it’s important to know how much you will get and what expenses are covered. Check with your state’s Department of Labor to see if you qualify.
Disabled Worker Tax Credits
The Social Security Administration offers a Disabled Worker tax credit for people who can’t work. This tax credit can help pay for medical expenses and housing. To qualify, you must meet certain requirements. These include income and resource limits.
Jobseeker’s Allowance
The Jobseeker’s Allowance is a government benefit. It gives financial help to people looking for work. The allowance can help pay for things like housing and transportation. To qualify, you must be unemployed and looking for a job.
Debt Management: Other Important Resources and Information
Here are valuable resources and information for disabled people who need help with debt management:
- National Disability Rights Network has information and resources on issues that affect people with disabilities.
- Disability.gov has information and resources on topics like employment, education, housing, and benefits.
- Benefits.gov has information on government benefits programs. This includes programs for disabled people.
Budgeting Tools
You can also use budgeting tools online to help manage your money and get out of debt.
- Credit Karma connects to your bank and credit accounts. It helps you make a budget and keeps an eye on your spending.
- PocketGuard shows how much money you have left after paying bills. It looks for ways to save, like finding better deals on services. It’s easy to follow and uses simple charts.
- Goodbudget uses a digital version of the envelope method. You set money aside for different things, like rent or groceries. It’s great for tracking shared budgets, like with a partner or caregiver.
Finding Accessible Work
If you have trouble finding work, these resources may help:
- Vocational Rehabilitation services can help people with disabilities find and keep a job.
- Ticket to Work programs can help people with disabilities who receive Social Security disability benefits find and keep a job.
- One-Stop Career Centers offer job search help. This includes resume help and interview preparation.
- Local Chambers of Commerce can connect you with businesses in your area.
Final Thoughts
Living with a disability can come with extra costs and barriers. These can lead to serious debt. But there is hope. Many programs and tools exist to help people with disabilities manage their money and find support.
From budgeting apps to job services and benefit programs, help is out there. Learning about your options is the first step. Reaching out for support is the next.
You don’t have to face financial challenges alone. With the right resources, it is possible to build a more stable and secure future.
