Managing a Financial Hardship
Financial stress doesn't only happen during a government shutdown. Unexpected events - from medical bills and job loss to reduced work hours or family emergencies -can impact your ability to keep up with everyday expenses.
Your Bank Is a Stable Resource - Even in Uncertain Times
No matter what is happening around you, your accounts remain secure and accessible. FDIC-insured banks continue to operate independently giving you uninterrupted access to checking, savings, digital banking tools, ATMs and automatic payments. While life events can cause financial disruption, your bank remains a steady partner you can rely on.
Managing Day-to-Day Money Under Stress
When your income changes or expenses increase unexpectedly, taking quick action can help protect your long-term financial health. Consider these important steps to take charge:
- Prioritize essentials like housing, food, utilities, healthcare, and transportation.
- Pause all non-essential spending to stretch your available funds.
- Review automatic payments, subscriptions, and memberships you can postpone or cancel.
- Contact lenders and service providers early - many offer hardship accommodations when contacted proactively.
- Avoid high-interest short-term loans, payday and cash advances when possible. These can be costly and lead to further stress.
Preparing for Rising Costs or Reduced Income
Financial hardship doesn't always look like a missed paycheck. Sometimes it's a slow increase in expenses, changes in healthcare premiums, or a shift in household income. If you anticipate a tighter budget in the near future, now is the time to:
- Reevaluate insurance, childcare, and other recurring costs.
- Compare options and adjust coverage to fit your financial reality.
- Build an emergency fund buffer, when possible, to help ease the impact of future income changes.
- Consider a short-term side-gig or sell unwanted items to help with extra cash.
Tips for Homebuyers, Homeowners, and Renters
If you are in the process of buying, selling, or refinancing, financial hardship can add stress to an already important decision. Communication is essential. Let your loan advisor know if your circumstances have changed - there may be ways to adjust your timeline or support your application.
If you're already a homeowner and facing temporary difficulty, options like payment extensions or loan modification programs may be available. For homeowners who are otherwise financially stable but experiencing a short-term income gap, accessing your home's equity may be a temporary solution. A home equity line or loan may provide breathing room when used responsibly.
If you are renting, contact your landlord or property manager to discuss your situation, there may be options, or payment plans available that you are not aware of to help you stay in your home.
Planning for Education Costs
Education expenses can still move forward even when finances are tight. Whether you are waiting on financial aid, managing loan payments, or preparing for tuition, know that:
- Existing student loan payments typically remain scheduled unless special arrangements are made.
- New applications, certifications, or aid processing may take time - early planning is key.
Protect Your State of Mind
Financial stress can significantly impact your mental and physical health. Do not feel ashamed or guilty about what you are going through. Financial struggles are common, and you are not alone!
- Focus on small, manageable steps and goals to help reduce the feeling of helplessness and achieve success.
- Talk to a trusted partner, family member, or friend. You can also seek help from counselors; there are some who even specialize in financial stress.
- Avoid constantly checking your accounts. Set up online alerts to keep you informed of important financial transactions and situations to help reduce anxiety.
- Find healthy outlets that cost nothing but time such as taking a walk, prayer or meditation, or even journaling to help calm and reset your perspective.
Additional Support May Be Available
If your financial hardship extends beyond what you can manage through budgeting or short-term adjustments, you may also qualify for assistance through community programs, nonprofit agencies or government support resources. Depending on your situation, help may be available for housing, utilities, food, healthcare and more.
No matter the cause, you don't have to navigate a financial hardship alone. If you are facing a temporary financial setback, let us know! We can work with you to review your options, adjust payment schedules, and help you create a plan to stay on track until things stabilize.