RB Singh* was diagnosed with severe respiratory problems, and his doctors say he will need at least 10 months of rest before he can return to work. This means that RB, who works as a draughtsman at an architecture company, will lose his income for several months. He is a widower with two young children.

The stress is building up as he worries about whether he can keep his job and whether he has enough savings to look after his children. He has a $35,000 car loan to repay as well as a $10,000 personal loan which he took to tide his family while he stayed home for three months to look after his children after his wife’s death. RB has no health insurance but has enough in his Medisave account to cover some of his medical expenses.

What should he do?

For many, a long-term illness doesn't necessarily mean a loss of income.

The first thing RB should do is discuss with his employer the various medical leave options open to him. He should also contact his creditors with a doctor's letter explaining his predicament.

Generally, if he explains to his creditors that he may have trouble making his debt repayments because of his illness, creditors tend to be understanding. They may offer to stop interest or lower repayments for a period of time.

Like many people, RB didn't factor in illness into his financial budgeting plan. But as he learnt, illness can strike at any time and some sort of plan should have been put in place, especially as he has two young children to think about.


* Names are fictitious