Poverty concerns with disabilities

According to the Finity Group, 65 percent of individuals who lived in poverty for at least three years had a disability. This statistic alone challenges the common belief that poverty is primarily the result of poor choices or lack of effort. Instead, it reveals how closely financial stability is tied to health and the ability to earn an income. When a disability enters the picture, even temporarily, the odds of maintaining long-term financial security drop dramatically.

Individuals with disabilities are about 2.5 times more likely to declare bankruptcy and experience poverty than those without disabilities. This increased vulnerability often develops quietly—missed workdays turn into reduced hours, reduced hours turn into lost jobs, and lost jobs quickly lead to mounting bills. At the same time, medical appointments, treatments, medications, and recovery costs continue to pile up. What begins as a health challenge can rapidly spiral into a financial one.

Nearly 78 percent of bankruptcy filers cited income loss as a direct contributor to their bankruptcy, with 44 percent reporting that medical problems were the root cause of that lost income. These numbers highlight a harsh reality: it is often not reckless spending that pushes people into bankruptcy, but the sudden disappearance of a paycheck. For many families, there is little margin for error, and even a short disruption in income can have long-lasting consequences.

Taken together, these statistics paint a clear picture of how disability and financial hardship are deeply intertwined. They serve as a reminder that disability is not rare, poverty is not always preventable, and financial vulnerability can affect anyone—often without warning.