How do people cope with financial hardship?

✓ Identify ways you and your family can reduce expenses and manage your money more effectively . ✓ Commit to an action plan and review regularly. ✓ If you are getting behind with bills/debt, reach out for help. Although this can be anxiety-provoking in the short term, writing a plan and sticking to it can reduce stress.

How to deal with financial crisis?

Coping with Financial Stress Understanding financial stress. Effects of financial stress on your health. Tip 1: Talk to someone. Tip 2: Take inventory of your finances. Tip 3: Make a plan—and stick to it. Tip 4: Create a monthly budget. Tip 5: Manage your overall stress. Feb 5, 2024

How does financial hardship affect one's life?

They can lead to relationship problems, physical health problems and mental health issues, such as depression or anxiety . You can minimise the impact of financial stress by looking after your health and seeking support from loved ones or professionals.

How do you overcome financial distress?

How We Make Money Prioritize what you can control on discretionary spending. Find ways to earn more money. Pay essential bills. Save money during trying times. Track your money-saving progress. Talk to your lenders. Consult with an expert financial advisor. May 12, 2023

What is financial anxiety?

Financial anxiety, or money anxiety, is a feeling of worry about your money situation . This can include your income, your job security, your debts, and your ability to afford necessities and non-essentials.

How to ask for financial help?

Be honest about your financial status, the amount you need and the payment plan . The payment could be in installments, or in full depending on what both parties agree upon. Be clear about what you want a loan or some help. Let them know whether they should expect returns or let go.

How to get money fast?

How to make money fast Become a rideshare driver. ... 2. Make deliveries. ... Help others with simple, everyday tasks. ... Pet sit. ... Sell clothes and accessories online. ... Sell unused gift cards. ... Earn a bank bonus. ... Take surveys. More items...

What are 4 causes of financial crisis?

Main Causes of the GFC Excessive risk-taking in a favourable macroeconomic environment. ... Increased borrowing by banks and investors. ... Regulation and policy errors. ... US house prices fell, borrowers missed repayments. ... Stresses in the financial system. ... Spillovers to other countries. More items...

How do you survive financial setbacks?

It's so common, in fact, there are some key, proven steps to help you come back if and when you experience a financial setback: You can succeed. ... Know your financial resources. ... Set up a budget and prioritize expenses. ... Take action now. ... Seek out professional help.

What can hardships do to a person?

During rough moments, we don't often think of how the experience impacts our health. We just want it to be over and move on. However, adversity has a significant effect on our mental health which can contribute to mental, psychological, and emotional issues .

Can financial stress make you sick?

In sum, there's plenty of financial stress to go around—and it can take a significant toll on your employees' health. Stress over money has been linked to heart disease, diabetes, migraines, sleep problems, depression and more.

Dealing with Financial Hardships in Alabama (2024)

Consumer Debt in Alabama

This chart shows a breakdown of average consumer debt in Alabama, based on the latest report of Household Debt report from the Federal Reserve.

In 2020, 18,127 Alabamians filed for bankruptcy compared to the previous year’s filing total of 26,809.

Income and employment in Alabama

Alabama has a per capita, or average per-person income, of $46,908, which happens to fall just short of the nationwide average of $59,729. The median household income is $50,536. And their minimum wage is on par with the federal minimum wage of $7.25 per hour.

With Alabama being a right-to-work state, it is “the public policy of Alabama that the right of persons to work shall not be denied or abridged on account of membership or non-membership in any labor union or labor organization.” Alabama has had this statute in its state code since 1953.

During the spring of 2020, Alabama had an unemployment rate of 13%. As of March 2022, the unemployment rate sits at 3.1%, nearing the pre-pandemic record low of 2.6%. Three major corporate growth projects have picked up steam since August 2020, creating job opportunities and giving hope to more economic activity on the way.

Though the percentage of persons in poverty is slightly below average, the lower cost of living helps in this regard. Senator Gerald Allen believes that strengthening the workforce long-term starts with investing in students, with only 25.5% of the population holding a bachelor’s degree or higher.

Apply for unemployment benefits in Alabama »

Unemployment Benefits:

Minimum per Week: $45
Maximum per Week: $275
Maximum availability of benefits: 26 weeks

General Information about the Unemployment Insurance Program:

Alabama Department of Labor

To file a UI claim online:

Alabama Department of Labor Initial Claim for Unemployment Compensation

To file a claim by telephone number:

Alabama Department of Labor Telephone Numbers

Coronavirus update: Alabama is providing updates on Unemployment Insurance changes related to COVID-19 here:

Alabama Department of Labor Unemployed COVID-19 Resources

Banking and taxes in Alabama

Alabama has an income tax range of 2% to 5% and a state sales tax of 4%. However, that sales tax rate can jump up to 7.5% if you are in the Banks zip code (36005). An alternative sales tax rate of 9% applies in the tax region Pike, which belongs to the 36005-zip code as well.

Banking is also fairly uncommon compared to most states. Residents without a checking or savings account represent 7.6% of the population.

Alabama housing market

Alabama possesses one of the most affordable large metro cities in the U.S. currently, Birmingham-Hoover, as well as 4 out of 15 in small metro cities:

Florence-Muscle Shoals
Gadsden
Decatur
Dothan

While the median home price in Alabama sits around $265,200, the number of homes sold fell 2.7% and the number of homes for sale fell 39.5%. So, while affordable living is readily available, people have found the market tough, much like most of the country during and post-pandemic.

Alabama offers a homestead exemption of $15,000, though that is doubled for married couples, joint owners, or joint filing spouses.

68.8% of Alabamians are homeowners
Median mortgage payment: $1,147
Median rent payment: $792
Average mortgage debt: $23,060

If you are finding it challenging to make rental payments, you can seek assistance through Alabama’srental programs.

For those seeking mortgage relief, Alabama offers a lending hand through Mortgage Assistance Alabama.

Retirement in Alabama

With a cost of living 13% below the national average, and the second-lowest property taxes in the U.S., Alabama is considered the sixth-best state for retirement. Financially, $713,000 is needed to retire comfortably, $334,052 more than the average Alabamian’s retirement account ($378,948 on average).

Alabama’s highest state income tax rate is only 5%, and Social Security income from traditional pension plans is exempt from income tax. This is a plus, considering 30% of elderly households rely on Social Security for at least 90% of their income. All homeowners 65 or older are exempt from state property taxes, which means the average retiree (62 years of age) just needs to wait 3 years to become eligible.

Average Alabama insurance premiums

There are over four million licensed drivers in Alabama, yet 19% of residents are driving uninsured. Ranking Alabama 7^th in the nation for the highest number of uninsured drivers. The average yearly cost for auto insurance premiums in Alabama is $1,358, slightly lower than the national average of $1,674 respectively. Having insurance in Alabama is crucial as it is an “at-fault” state, meaning the insurance company of the person found at fault for the accident must pay for property damages, medical bills, etc.

The cost of insuring a home has continued to rise steadily over the last 12 years, more than 40% since 2010. Average Homeowner insurance premiums in Alabama are higher, $2,328 per year, than those nationwide, around $1,680.

Approximately 573,672 Alabamians are without healthcare. This can be attributed to the average monthly premium of $513 a month ($6,163 per year), which ranks unfavorably in terms of premium coverage in the country.

Helpful resources for Alabamians facing hardship

Food Insecurity

City/Region	Food Bank	Phone Number	Address
Auburn	Food Bank of East Alabama	334-821-9006	355 Industry Drive Auburn, AL 36832
Birmingham	Community Food Bank of Central Alabama	205-942-8911	107 Walter Davis Drive, Birmingham, AL 35209
Huntsville	Food Bank of North Alabama	256-539-2256	2000 B. Vernon Ave., Huntsville, AL 35805 [P.O. Box 18607]
Montgomery	Heart of Alabama Food Bank	334-263-3784	521 Trade Center Street, Montgomery, AL 36108
Theodore	Feeding the Gulf Coast	251-653-1617	5248 Mobile South Street, Theodore, AL 36582

Veterans

As of 2019, Alabama was home to 330,207 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

Helpful employment resources for Veterans:

How Consolidated Credit helps Alabamians find debt relief

In 2021, Consolidated Credit provided freecredit counselingto 2,897 Alabama residents. Of those, 83 went on to consolidate their debt with our help through adebt management program(the average amount of debt enrolled was $9,085). The others received a free debt analysis and complementary budget evaluation, and they were directed to the right solution for their situation to get out of debt as quickly as possible.

We’d also like to congratulate the 69 Alabama residents that got debt-free last year with the help of Consolidated Credit!

Relief options to consider if you’re in debt in Alabama

If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you can refinance your debt at a low-interest rate and enjoy one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for Alabama residents with high debt and a good credit score.

Alabama homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.

Consolidated Credit helps Alabama residents with counseling programs that identify the best way to get out of debt after considering their situations. Alabama residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.

In Alabama, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying Alabamians can get out of debt in 36-60 payments, on average.

Another option for Alabama residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for Alabama residents with overwhelming debt. It can help you avoid bankruptcy.

If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in Alabama. If you’re facing challenges with debt, call us at(844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.