How to Find Emergency Financial Assistance

Whether it’s at home or in the broader economy, it’s hard to know what the future may bring. That’s why it’s a good idea to know what options are available in the event you face a financial crisis.

Here are six tips for how to deal with a sudden financial hardship.

1. Revisit your budget and spending

Surviving a financial emergency requires rethinking your budget. If you don’t have a budget, now might be an ideal time to create one.

If you do have one, review it to find areas where you can reduce your spending. Maybe you have a gym membership you’re not using or a cable package you can renegotiate. Plan your meals in advance. Before going grocery shopping, check to see that you’re only purchasing what you need. Or if you pay for services, consider whether you can do the work yourself.

You might also use budget tools or personal finance apps to track your spending and help you cut back. Put any savings you have toward your financial emergency or into your emergency fund for later if you’re planning ahead.

2. Ask your creditors about payment options

Asking for help from creditors may feel uncomfortable, but you should explore all your options during a financial emergency. If you’re having trouble making your credit card, loan, or mortgage payments, reach out to your lenders to ask about possible emergency financial relief.

Some banks may offer to defer payments temporarily. Be prepared to explain your situation clearly if you give them a call. You could also contact your landlord and utility companies to find out if they have a payment plan. It may help if you have consistently paid your debts on time. A good credit history may also help support your request.

3. Reach out to family and friends

Turning to family members or close friends is another option for getting through your financial emergency. They may not be able to lend you money or provide emergency cash, but they might help you brainstorm ideas, job hunt, or simply provide meals and emotional support. They care about you and want you to succeed. You don’t need to go through this hardship alone.

If you do borrow from family, it’s important to protect your relationship. Have a written plan to pay them back and offer fair terms. Also, be aware that the IRS has rules about loans between family members to ensure that the loan is not treated as a gift. Consult a tax professional to learn more.

4. Know what government assistance programs exist for financial emergencies

Depending on the cause of the emergency, you might qualify for financial aid from the government. There are many programs that can help with unemployment, housing, groceries, small business support, and student debt relief. Programs may be available from federal and state agencies.

If you lose your job, for example, you’ll want to look into whether you qualify for unemployment benefits. If you face a medical emergency, find out if your employer offers paid leave.

5. Safeguard yourself from financial fraud

Unfortunately, some fraudsters take advantage of people during a time of crisis. They might offer quick-fix scams or spread false information by sending deceptive emails or creating fake websites. Financial exploitation is particularly prevalent among the older population.

If you receive emails or calls offering financial assistance or requesting personal information, be careful. Don’t click on links in suspicious emails or text messages. Reputable financial institutions will not solicit personal information that way. If you’re uncertain, contact your financial institution to verify the message.

6. Consider a personal loan

If you don’t have an emergency fund, a personal loan may help you stay afloat. A personal loan is a type of installment loan that can provide a fixed interest rate and one set regular monthly payment so that you can budget and plan for the months ahead.

Begin by comparing interest rates and repayment terms. Ask about any fees that might be charged so that you’ll know exactly how much it will cost you to repay the loan. As you research your options, remember that the stated interest rate and annual percentage rate (APR) may be different if additional costs are involved.

A Discover personal loan might be a valuable lifeline to help you get through a period of financial hardship and stress. We’re here to help and support you; if you face a financial emergency, you can talk with a U.S.-based personal loan specialist who will explain your options and help you complete your application.

There are no fees of any kind. And with Discover, you can see what your loan rate and set regular payment could be before you apply with no impact to your credit.

The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., (Discover) or its affiliates.