What to do when financial emergencies happen

A financial setback — like a big, unexpected expense or sudden loss of a job — can be scary and feel overwhelming. If it’s happened to you, you’re not alone. Having a solid financial plan ready can help you stay grounded and feel more confident about getting back on track, both financially and emotionally.

This step-by-step checklist outlines what to do right away when financial emergencies hit, so you can reflect, regroup, and move forward with confidence when the unexpected happens.

Your checklist for financial emergencies

Financial emergencies can happen to anyone, but a few smart moves can help you bounce back.

Step 1: Prioritize the essentials

• Make a list of all your expenses and split them into needs and wants.
• Rank each expense by importance so you’ll know which ones to cover first.
• Identify things you can pause or cancel temporarily — like streaming services or monthly memberships.
• Find lower-cost or free ways to get nonessential extras — like working out at home instead of a gym.

Step 2: Review your available funds and resources

• Check all your accounts (checking, savings, and any emergency funds) to see what’s available right now.
• Note how much is available immediately versus what needs to be saved for upcoming bills.
• Explore community and government resources that may help bridge the gap (e.g., rent/utility assistance programs, food banks, or unemployment benefits). Calling 211 is one place to start.

Step 3: Seek smart short-term solutions

• If needed, consider small-dollar loans from well-known banks or credit unions with lower interest rates and fees and transparent terms.
• Be cautious of payday loans or other high-interest loans (typically, any annual percentage rate above 36%) that can worsen financial stress.
• A credit card can help cover essentials when you have a repayment plan to minimize interest.
• Before borrowing or using a credit card, review interest rates, fees, and repayment terms carefully.

Step 4: Contact creditors and service providers early

• Reach out to your lenders, credit card companies, or service providers as soon as possible.
• Ask if they offer hardship programs (e.g., payment pauses, reduced minimums, lower interest rates, or extended due dates).
• Explain your situation honestly and ask about available options.
• Get any agreements in writing and confirm when your regular payments will resume.