Disability Claim Delays At Social Security, Soaring Credit Card Debt Highlight Importance of Financial Options, Allsup Reports

Belleville, Illinois – Nov. 28, 2023 – As U.S. credit card debt has hit a historic milestone and the Social Security disability claims backlog continues, Allsup has expanded its services to provide Disability Financial Solutions^SM to thousands of former workers caught in the extended wait for benefits. Allsup, the nation’s premier provider of disability representation, is now offering a range of financial solutions to address claimants’ pressing money issues as average processing wait times reach 220 days for initial application decisions alone. 

For the first time, credit card debt exceeds $1 trillion, according to the Federal Reserve Bank of New York. Adding to the urgency, over 1 million people are currently waiting for initial disability claims processing by the Social Security Administration. Social Security Disability Insurance (SSDI) provides monthly income and support for individuals unable to work due to severe illness or injury. Nearly 160 million workers are currently insured for SSDI, a benefit funded by FICA payroll taxes.

In addition to the economic stress of health issues, individuals applying for disability benefits face a daunting process to apply for benefits, and if denied, appealing through a lengthy determination process at the federal agency.  

“Credit card debt can compound the financial stress for people when they must stop working due to disability,” said T.J. Geist, Principal Advocate at Allsup. “In the past, applicants could see a decision as soon as three months, but now they’re waiting over seven months for an initial SSA decision, with appeals adding another 15 months or more. A disability can quickly become a financial crisis for individuals and their families.”

A Congressional hearing in October spotlighted the pressing need for expediting the Social Security disability claims process, Geist said. “SSDI benefits frequently serve as the sole financial lifeline for people with disabilities and their families.”

According to the U.S. Census Bureau, the rate of medical debt nearly doubled for households with a member who had a hospital stay, standing at 31.3% compared to 15.8% for those without a hospital stay. “The financial hardship that arises when someone ceases working due to health issues is overwhelming. That’s why we've broadened our SSDI services to include Disability Financial Solutions^SM (DFS),” Geist said. “We are dedicated to providing true help that makes a difference for our customers, particularly financial relief quickly, while they’re facing medical difficulties and long SSA wait times.”

Allsup’s Disability Financial Solutions include:

• Healthcare insurance options: The Healthcare Insurance Services team at Allsup assists clients in exploring healthcare insurance options, ensuring access to essential medical treatment and enhancing the likelihood of SSDI benefits approval.
• Credit card and medical bill savings: Debt settlement experts negotiate with credit card and medical companies on behalf of Allsup customers, yielding substantial savings while alleviating financial strain.
• Food, utility, prescription savings and more: Allsup connects customers with resources offering savings on everyday necessities like utilities, meals and prescriptions.
• Mortgage relief: Leveraging an extensive network, Allsup provides customers with information on Housing Assistance Fund (HAF) resources available in their respective states, offering vital support during challenging periods.

Customers are sharing their stories of relief: “Allsup has been by my side every step of the way. It’s comforting to know I can pay my debt off sooner. If Allsup only helped with my SSDI case and my debt, that would be enough. Instead, they also provided resources to help lower our monthly expenses. I am forever grateful for using Allsup!” – said Karina, a satisfied Allsup customer.

For more information about applying for SSDI benefits, filing your appeal if you were denied, or to see if you are eligible, visit FileSSDI.Allsup.com or call 1-800-678-3276.

ABOUT ALLSUP

Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at Allsup.com and @Allsup or download a free PDF of Applying for Social Security Disability Insurance: Getting It Right The First Time.