Each and every one of us will experience a life-altering event during our lifetime. The birth of a child, loss of a job, a death, children attending college or possibly becoming a caregiver for an older parent—these things are inevitable. The question is: are you prepared financially?

In reality, most Americans are living paycheck to paycheck and with increasing costs of living, combined with a life-altering event, it is easy to see how one can feel trapped in a never-ending cycle. The following are some simple strategies you can easily implement during a time of crisis:

1. Review Your Expenses
Review your current expenses and see what can be eliminated or where costs can be cut. Check your cellphone plans, automobile and renter’s or homeowner’s insurance and cable services. It’s not uncommon that many are overpaying for these services and you would be amazed at the amount you can save by simply making changes to your existing plans.

2. Contact Your Creditors
Contact your creditors (credit cards, utilities, cellphone bills and possibly mortgage) and make them aware you are experiencing an “unforeseen circumstance.” You do not have to provide specific details, but creditors can extend a deferment on your accounts, meaning they can allow you to “skip” payments for a few months and add the payments to the end of the loan. During this time, they will report to the credit bureaus you are making on-time payments on the account. The money you are not paying during this period you should save or apply it to bills that need to be paid. If you contact your mortgage company, make sure you are given a deferment and not a forbearance. They are completely different. A mortgage deferment adds the payments to the end of the loan. On the other hand, a mortgage forbearance will require you to make a lump-sum payment at the end of the forbearance period, typically about 90 days. As an example, if you have a $1,000 monthly mortgage payment and you accept a forbearance, you will be required to pay $3,000 of mortgage payments at the end of the 90-day period. Make sure you know the details and receive the agreement in writing.

3. Determine What Government Resources Are Available
If you find yourself unemployed or have a reduction in income, contact your local state services to file for unemployment, if you qualify. Keep in mind that receiving unemployment is twofold. You must register on the state website and certify weekly, and your former employer will have to submit information on your behalf for you to receive the benefits. During the current pandemic, employees and individuals that are self-employed and have been impacted by COVID-19 are eligible for unemployment benefits that pay $875 weekly. $275 is paid through the state unemployment and $600 is paid through the Federal Stimulus Package (the $600 portion will last for a four-month period). You do not have to complete any additional steps on the state’s unemployment website; however, you must indicate if you are self-employed.

The Department of Human Services is offering additional supports through Tennessee Assistance for Needy Families (TANF). Families that have been impacted by COVID-19 and have either lost their job or had their income decrease can receive a two-month stipend up to $1,000 depending on the size of the family. Income restrictions apply. Complete the application at tdhs.service-now.com.

Also, you could be eligible for Supplemental Nutrition Assistance Program (SNAP) Benefits. SNAP (formerly known as food stamps) provides a monthly supplement to purchase food. A common myth is you can only receive SNAP benefits if you do not work. However, this is not the case. Many people work and receive these benefits. There are income restrictions and keep in mind you can stop the benefits once your finances return to normal.

4. Consider Using Funds from Your 401K
Some may disagree, but if facing bankruptcy or losing your home, this is definitely something to consider. The CARES Act has put measures in place to prevent individuals from receiving penalties if they use funds from their 401k, though your employer must agree to these terms. Research this option to see if it works for your family.

During turbulent times it is very easy to make decisions based on impulse. I encourage you to explore all of these options and determine what is best for your situation.