The aftermath of the 2009 financial crisis reverberates all across the United States, especially with working families who grapple with debt, a weakened housing market and unemployment. Financial stress creates instability and fear. But there is financial help from a variety of sources if you and your family are struggling.
Mortgage Assistance
The U.S. Department of Housing and Urban Development, or HUD, in 2010 launched a Short Refinance Option for underwater homeowners--families who saw their local housing markets dry up as a result of the economic downturn and now owe more on their mortgage than their house is worth. In order to be eligible you must meet certain criteria, including a credit score equal to or greater than 500, and the property must be your primary residence.
In addition, several states have programs designed to help families adversely affected by the recession keep their homes. Michigan, Arizona, Florida and California earmarked $1.4 billion to assist the unemployed and those with underwater mortgages in evading foreclosure, according to Family Financial Help USA. Oregon, Nevada, Rhode Island, North Carolina, South Carolina and Ohio implemented similar programs. The programs, which target families ineligible for traditional mortgage modification and relief plans, have total funding of $2.1 billion.
Rapid Response Service
The U.S. Department of Labor's Rapid Response Services for Laid Off Workers helps families touched by unemployment. Trained specialists provide information about unemployment insurance, education and training opportunities, and benefits. Rapid Response offers job search assistance as well as workshops on resume building, interviewing skills, financial planning and stress management. Families can qualify for income support in cases where a parent's job was outsourced overseas.
Debt Help
Consumer debt looms for many families, especially when diminished cash flow causes them to rely more and more on credit cards for basics such as food and clothing. According to Family Financial Help USA, 2009 witnessed a staggering $900 billion in outstanding credit card debt. Federal rules effective in 2010 remove some fees, including those on inactive cards. Also, double-billing cycles and rate increases without immediate notice no longer are allowed, according to Family Financial Help USA, and that can help some families manage their debt. Professional debt counselors can work with creditors to lower monthly payments--sometimes by as much as 60 percent.
Retraining
Government programs designed to train people for better-paying jobs benefit families by offering the chance for a higher standard of living and less stress over job prospects. According to the U.S. Department of Labor, as quoted by Family Financial Help USA, laid-off workers who completed training for in-demand sectors such as health care, technology and renewable energy earned 29 percent more money.
Cash Flow
For cash-strapped families, there can be lean weeks between paychecks. President Obama signed the Recovery Act in 2009, which established the Emergency Contingency Fund for state Temporary Assistance to Needy Families programs. Up to $5 billion is available to underwrite expenditures related to short-term benefits or subsidized employment. Eligibility criteria vary by state.
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