Debt Relief for Seniors & Disabled: How SSI & SSDI Recipients Can Take Control

Relying solely on Social Security SSI or SSDI can make debt feel overwhelming, but you still have options to manage and reduce your debt without risking your income.

Your Social Security Benefits Are Protected

Your SSI and SSDI payments are safe from most creditors, including:

• Credit card companies

• Medical debt collectors

• Personal loan collectors

However, federal debts (like student loans, back taxes, & child support) can still garnish your benefits, so it’s important to know what debts you owe.

Review Your Budget

Write down:

• Your total monthly SSI or SSDI income

• Your monthly expenses

• Your debts and interest rates

Tracking your income and spending will help you see where to cut unnecessary costs and free up money to tackle debt.

You’ve earned certain benefits! Make sure you’re getting them here.

Tackle Priority Debts First

Focus on:
1. Federal debts (since they can affect your benefits)
2. Debts with high interest rates to avoid them growing

Private debts like credit cards or medical bills are less urgent and often negotiable.

Talk to Your Creditors

Most creditors prefer a payment over none. You can:

• Ask for a lower payment plan

• Request reduced interest rates

• Negotiate a settlement

Explain that you’re living on Social Security, and ask what options are available. If you’re unsure, a nonprofit credit counselor can help negotiate for you.

Get Free Credit Counseling

• Certified free credit counseling agencies can help you:

• Create a payment plan that fits your budget

• Consolidate payments

• Lower interest rates

• Avoid scams

Search for HUD-approved or nonprofit credit counseling near you.

Consider Debt Forgiveness

If you cannot pay your debts due to low income, look into:

• Debt forgiveness or hardship programs

• Debt cancellation

• Free legal aid for seniors and those with disabilities

Contact local legal aid offices or disability organizations to see if you qualify.

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