Reducing Expenses During a Sudden Financial Hardship
- Reducing expenses in financial hardship is key to helping you afford your basic living expenses.
- You may be able to negotiate with your creditors if you have outstanding debts.
- Government assistance programs and charitable organizations may also be able to help you with your basic expenses.
Table of Contents
Sudden financial hardships happen to everyone. Sometimes, they come in the form of an unexpected bill. Other times they can leave you without an income for an extended period of time.
One of the best things you can do to help yourself better weather these challenges is to reduce your expenses. With fewer bills to pay, you'll be able to stretch the dollars you have.
You may also be able to rely upon government assistance or debt relief programs to help you get by while covering essential costs. Here's a closer look at some of the most important changes you can make to get through a financial hardship.
Cover the Basics During Financial Hardship
Start by making a list of all the expenses you can't live without, including:
Rent or mortgage payments
Utilities
Food
Transportation
Medications
Insurance
Court-ordered payments you must make (i.e., child support or alimony)
Some of these, like a mortgage payment, are the same each month. Others, like food costs, fluctuate. Review your last few months of bank or credit card statements to get a rough idea of how much you spend on these expenses in a given month.
Ideally, you'd have an emergency fund that could help you cover your basic expenses for three to six months. If you don’t, you’ll need to cut expenses and make any money you receive stretch as far as possible.
Limit Purchases
Avoid buying non-essentials to free up more cash to put toward your basic expenses. This might involve canceling some streaming services or subscription boxes and avoiding takeout until things get back to normal.
But you can still have fun. Going for walks or renting books or movies from your local library are great free ways to relax and unwind. You could also try hosting a game night with family or friends if you want something a bit more social.
If you’re not sure how to reduce your expenses, try an app like MoLO or another subscription management app. MoLO analyzes your spending patterns to help you find money leftover. It’s a great tool for saving or paying down debt, and could also be used to tighten up your budget when the situation calls for it.
Manage Your Debt
You may have debt payments that you need to keep up with. Go ahead and make a list of these too, including your monthly payment and the interest rate on the debt.
You may be able to negotiate a lower interest rate or a more affordable payment plan if you reach out to your creditor and let them know you're experiencing financial hardship. If you’re not sure what to say, try using something like this:
“Hi, I have been impacted by [emergency]. I am experiencing financial hardship, and I’m curious what debt relief options you might have for customers like me who were impacted by [emergency].”
You have other debt relief options as well, including debt settlement, which is getting your creditors to agree to accept less than the full amount you owe but consider it payment in full. Explore all the solutions available before deciding which is right for you.
Where to Turn if You're Having Trouble Keeping Up With Your Basic Expenses During Financial Hardship
If your own resources aren't enough to carry you through a financial hardship, the following programs could help.
Government assistance
Here's a list of government assistance programs designed to help Americans who are struggling financially to cover their basic living expenses:
Supplemental Nutrition Assistance Program (SNAP). Financial help for groceries at authorized retailers (including virtually all major grocery stores).
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Food assistance program for women and children.
Low Income Home Energy Assistance Program (LIHEAP). Financial help for heating and cooling costs, including weatherproofing.
Temporary Assistance for Needy Families (TANF). Cash assistance for families and those struggling to balance work and childcare.
Medicaid. Healthcare benefits for low-income families.
Social Security. Monthly income for retired workers and their spouses. Surviving family members of deceased workers and disabled workers might also qualify.
Housing and Urban Development (HUD) Public Housing Program. Low-cost housing options.
Note that many of these programs have strict eligibility criteria. You usually have to reach out to your state social services agency to verify your eligibility and apply.
Charitable programs
Charities can also provide valuable assistance when you're experiencing financial hardship. Some examples include:
Feeding America. A nationwide network of food banks that can help you get free groceries.
Salvation Army. Food and shelter assistance, job training, and after-school programs for kids.
United Way. A global charity that can connect you to numerous resources, including job training, education programs for kids, and healthcare resources.
Local food pantries. You may have local food banks in your area that can help you get the groceries you need.
Religious organizations. Many religious organizations have resources to help those who are experiencing financial hardship.
The right resources for you will depend on your unique situation, including the nature and severity of your financial hardship and how long it lasts. But know that help is available. Start with the resources listed above.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during August 2025. The data uncovers various trends and statistics about people seeking debt help.
Credit Card Usage by Age Group
No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.
Here's a snapshot of credit behaviors for August 2025 by age groups among debt relief seekers:
| Age group | Number of open credit cards | Average (total) Balance | Average monthly payment |
|---|---|---|---|
| 18-25 | 3 | $8,383 | $270 |
| 26-35 | 5 | $12,038 | $371 |
| 35-50 | 6 | $16,222 | $431 |
| 51-65 | 8 | $17,351 | $533 |
| Over 65 | 8 | $17,812 | $500 |
| All | 7 | $15,142 | $424 |
Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In August 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
Show source
Author Information
Written by
Kailey Hagen
Kailey is a CERTIFIED FINANCIAL PLANNER® Professional and has been writing about finance, including credit cards, banking, insurance, and retirement, since 2013. Her advice has been featured in major personal finance publications.
Reviewed by
Christy Bieber
Christy Bieber has been writing about personal finance and law for 16 years. She has a JD from UCLA School of Law with a focus on business law, and a BA in English, Media & Communications from the University of Rochester, as well as a Certificate of Business Administration.
What qualifies as a financial hardship?
Financial hardship refers to any situation where you have difficulty meeting your basic needs. Basic needs are food, housing, and healthcare. You may need to provide details about your income and expenses if you hope to receive government assistance that helps you navigate financial hardship.
How can I get financial help immediately?
Charitable organizations may be your best option if you need financial help immediately.
If you can’t pay your bills this month, reach out to your creditors to let them know. They might offer more time to pay your bills. If you expect the financial hardship to last for at least several months, consider applying for government assistance programs.
How do you get rid of debt when you're broke?
Getting rid of debt when you're broke is hard, but possible. If your debt is overwhelming and you don’t think you have any chance of getting ahead, you might be a candidate for bankruptcy or debt settlement.
