Experiencing a sudden loss or reduction in income is distressing to say the least. Income interruptions can have long-term impacts on managing personal and household finances. Alabama Extension financial educators recommend the following strategies to help you better navigate tough, temporary financial times.

Prioritize Your Bills

A personal spending plan helps you determine the most pressing expenditures. For most people, priority bills typically include looking at housing payments (like rent, mortgage, and utilities), transportation, and health care.

For information on how to set a spending plan and decide which bills to pay first, contact your local Extension office and ask about the WISE Money Management Calendar and corresponding workshop.

Communicate with Creditors

It is easy to get behind on credit card bills when income is interrupted. It is important not to avoid creditors. Instead, contact the people to whom you owe money and explain your situation. Creditors are usually willing to work with you if you contact them before you get behind in your payments. Inform them that your family income has been reduced and you are temporarily unable to make your regular payments. Many creditors would prefer to receive smaller payments on a regular basis than to begin expensive collection procedures.

For more information, contact your local Extension office to learn more about the free Money Goals credit and debit workshop series.

Take Advantage of Assistance

Sometimes, people need a bit of help to make ends meet. There is no shame in seeking help when financial times get tough. Like most states, Alabama has many agencies, nonprofits, and other organizations that offer food, housing, utility, taxes, and other services. The lists below provide some national, regional, and Alabama-specific resources for people and families.

National & Regional Resources

• How to Handle a Furlough: Develop a Plan—Rutgers Cooperative Extension, njaes.rutgers.edu
• Resources for Federal Employees—Partnership for Public Service, ourpublicservice.org
• Resources for Employees During a Lapse in Appropriations—US Department of Homeland Security, www.dhs.gov
• Government Shutdowns Q&A: Everything You Should Know—Committee for a Responsible Federal Budget, www.crfb.org
• Furlough Guidance—US Office of Personnel Management, www.opm.gov
• Utility Rent Assistance—The Salvation Army, www.salvationarmyusa.org

Alabama Resources

• General Household Assistance—FindHelp.org
  • Here, you can find free or reduced-cost resources like food, housing, financial assistance, health care, and more.

Unemployment

• Unemployment Compensation—Alabama Department of Labor, adol.alabama.gov
• Unemployment Services—Workforce Alabama, workforce.alabama.gov

Food Assistance

• Food Banks—Feeding America, feedingalabama.org
• Food Pantries and Soup Kitchens—211 United Way, www.211connectsalabama.org

Utilities

• Alabama Resources for Utility Assistance—Community Action, caaalabama.org
• Low-Income Home Energy Assistance Program—Energy, Alabama Department of Economic and Community Affairs, adeca.alabama.gov
• Payment Assistance Programs—Alabama Power, www.alabamapower.com

Foreclosure & Bankruptcy Prevention

• Financial Stability—United Way of Central Alabama, www.uwca.org
• Find a Foreclosure Mediator—Alabama Center for Dispute Resolution, alabamaadr.org
• Foreclosure Prevention Partnership—River Region United Way, www.rruw.org/foreclosure
• Foreclosure Prevention Pathway—University of Alabama, cbp.ua.edu

Rent & Eviction Support

• Housing Counseling—Alabama Council on Human Relations, www.achr.com

Debt Collection

• Debt Collection—Consumer Financial Protection Bureau, www.consumerfinance.gov
• Debt Relief—Legal Services of Alabama, legalservicesalabama.org

US Department of Housing and Urban Development (HUD) Housing Counseling Locations

Alabama HUD-approved housing counseling agencies are trusted and trained sources of free and low-cost assistance to help people maintain financial and housing stability. The agencies listed in the table below offer various assistances, such as homelessness, mortgage delinquency, and rental assistance. Contact the agencies directly for more information.