Facing a Financial Emergency

A financial crisis can feel overwhelming; creating a recovery plan may help you regain a sense of control while you navigate the situation. Here are a few steps you can take to start your plan. 

Facing a Financial Emergency

While there is no one-size-fits-all solution when you are experiencing financial uncertainty, taking these steps may help you minimize the impact and recover quicker once the crisis has passed. 

Create a Recovery Plan

If you are experiencing a financial setback, your first priority is to immediately limit spending to essential items only. Focus on what's critical - ensure you can eat, sleep, and earn an income. Pause or cancel everything else. It may feel harsh, but every dollar you don't spend helps streamline your recovery. Start by cutting entertainment expenses since they are nonessential and easy to cancel.

Next, determine how the event impacts your finances. Include:

  • Immediate costs (for example, a medical bill or car repair)
  • Ongoing and related expenses (such as a rental car or lost income)
  • Duration of the setback (strategies for short-term differ from long-term)

The more accurately you understand the total cost, the more realistic your plan will be. 

Once you have an overview of your situation, take steps to stay organized and look for solutions that keep things as manageable as possible. This can help prevent a domino of late fees and missed payments. Start by:  

  • Updating or creating a budget to reflect your new priorities
  • Applying for emergency assistance programs, as soon as possible
  • Contacting service providers, creditors, utility companies, and financial institutions to explain the situation. They may be able to assist you with explore options such as: 
    • Rescheduling payment due dates
    • Setting up a payment plan
    • Restructuring debt
    • Changing service plans

It's normal to feel helpless in times of financial stress, so it's important to seek out knowledge and guidance. Aid can come in many forms, including: financial relief, education, counseling and support. Resources include: 

State Assistance
211 Virginia (dial 211) and VA Dept of Social Services 
State assistance and local support for a wide variety of needs including: employment assistance, food pantries, mental health services, disaster support and housing assistance. 

Food Assistance
Locate food support in your area through Feeding America's Food Bank Locator, Federation of Virginia Food Banks and the National School Lunch Program

Housing Support
Virginia Housing Voucher Program
Virginia Department of Housing and Community Development

Additional Emergency Assistance 
United Way - financial support services, childcare/early education support, and community resources
Salvation Army - food, clothing, rent/utility assistance and emergency shelter
Charlottesville Community Resource Hotline (833.524.2904)
Albermarle County Emergency Relief Program (434.972.4010 X6)
MACAA - financial assistance for residents of Fluvanna, Louisa, and Nelson Counties who are in need due to an unexpected hardship