This is a guest post.
When things are tight and we are trying our best to live inside a strict budget it is an easy temptation to cancel pet insurance payments as an ‘unnecessary expense’. But an accident or illness involving a feline or canine member of the family might change your mind – albeit too late.
Insurance is only good as long as the premiums are being paid. If you have paid pet insurance for five years and have never claimed, you may regard it as five years’ worth of wasted premiums. However, if you stop payments now and a month down the line your beloved dog requires veterinary treatment, you’ll quickly realise that a few pounds a month for insurance compares far more favourably to thousands of pounds in vets’ bills.
When choosing pet insurance it is important not to over-insure, as that does represent a waste of money. Don’t get sucked in to paying additional premiums for coverage you are unlikely to ever need. However basic pet insurance is a must-have because no one can predict the future. Knowing that your beloved four-legged friend is covered should the worst happen is exactly what pet insurance is for – it gives you (and your pet) peace of mind knowing that you can afford to pay for any treatment they might need.
Many loving pet owners come to this realisation too late. In attempting to ‘trim a little bit’ off the household budget and foregoing pet insurance, uninsured owners can quickly find themselves inside a spiral of accumulating debt in the form of astronomical vet fees if their animal develops a serious illness and requires ongoing treatment and/or operations.
If you find yourself in this position then vet fees can add considerably to existing debt problems. To be able to manage this situation effectively you need to get professional debt advice without delay. Any creditable debt advice company will offer a debt management plan, which is a budget compiled by both yourself and the debt advisor with a tally list of incoming and outgoings. The difference between what is coming in and what is going out is your disposable income, and it is from this amount that a manageable debt repayment scheme is worked out.
Should you owe in excess of £12,000 then you may be eligible for an IVA, which will be fully explained to you by the debt professional. An IVA allows the debtor to repay manageable sums over a five-year period. Whatever remains after that time is legally written off, leaving you debt-free. In certain (but not all) circumstances the IVA represents breathing space to debtors and a way out of serious debt.
Any new debt solution requires a new budget to be drawn up. That budget should include all your outgoings, which most definitely will include pet insurance. Once you have control of your finances you can then move forward with your new debt management plan, knowing that future vet care bills are taken care of.