What to Do If You Can’t Pay Your Bills Due to a Coronavirus Hardship
The COVID-19 pandemic has created a financial crisis for millions of Americans—and Alabamians are no exception. As of 2020, job losses, reduced hours, medical expenses, and family caregiving duties have left many struggling to keep up with rent, mortgage payments, utility bills, and debt.
If you’ve always managed your finances but now find yourself overwhelmed, you are not alone. At Nelson, Bryan, and Cross, we understand how unexpected hardship can feel—and we’re here to guide you through your options.
1. Start by Prioritizing Essentials
If your income has dropped, take care of the basics first:
Housing (rent/mortgage)
Utilities (electric, water, gas)
Groceries and medications
Transportation
Credit cards, student loans, and other debts may be postponed or negotiated, but protecting your shelter and safety should come first.
2. Contact Your Landlord or Lender Immediately
The CARES Act, passed in March 2020, offers temporary relief:
If your mortgage is federally backed (FHA, VA, USDA, Fannie Mae, Freddie Mac), you may qualify for forbearance.
Some landlords and local governments have paused evictions, especially for properties tied to federal housing programs.
Don't wait until you’re behind—reach out now and document your communication. Many companies are working with tenants and borrowers due to the national emergency.
3. Utility Companies May Offer a Grace Period
In Alabama, many utility providers—including Alabama Power and local water systems—have temporarily suspended shutoffs due to non-payment.
Still, it’s smart to:
Contact your provider
Ask about deferral or payment plan options
Keep a record of any agreements made
Even if disconnections are paused, you’ll eventually need to catch up—so understanding your options early can reduce long-term stress.
4. Explore Federal and State Relief Programs
You may qualify for:
Unemployment assistance, even if self-employed or gig economy
One-time stimulus payments under the CARES Act
Food assistance through SNAP or local food banks
Emergency grants or rent relief through community organizations or churches
Visit alabama.gov or irs.gov/coronavirus for up-to-date information, or call 2-1-1 to connect with Alabama-based nonprofits and relief programs.
5. Avoid Predatory Lenders
In times of desperation, payday lenders and quick-cash loans may seem tempting—but they often trap borrowers in high-interest cycles of debt. Speak with an attorney or financial advisor before taking on any short-term loan with harsh terms.
6. Document Everything
Keep records of:
Your income changes
Any medical bills related to COVID-19
Communications with landlords, lenders, or creditors
Denials or delays of public assistance
This documentation could help you negotiate with creditors—or apply for legal relief—down the road.
7. Know When to Call a Lawyer
If you’re facing:
Eviction despite COVID protections
Harassment by debt collectors
Denial of pandemic-related aid
Threats to your home, wages, or benefits
… then it may be time to get legal advice.
At Nelson, Bryan, and Cross, we’re here to help Alabamians protect what matters most—their families, their homes, and their rights.
We’re in This Together
2020 has tested everyone in ways we never imagined. If you’re falling behind on your bills, it’s not because you failed—it’s because this pandemic has created real, unprecedented hardship.
Contact us today to schedule a free consultation. Let’s talk about your situation and help you move forward with strength and support.
