Option 1: Get Help Lowering Bills

There are many ways to lower your expenses or debts. You may be able to negotiate with your creditors to lower what you owe. Most companies have programs to help customers experiencing COVID-related hardship. Tell your creditors and other companies to whom you owe money if you are experiencing a COVID hardship.

Homeowners: If you are having trouble paying your mortgage, contact a housing counselor and/or your mortgage servicer to talk about your options. If you have a COVID forbearance already, you may be eligible to extend it. Find a housing counselor near you here. Contact information for your mortgage servicer is found on your monthly mortgage statement. Call 888-995-HOPE (4673) to be connected to free, comprehensive, foreclosure assistance 24/7.

Renters: Information about rental assistance options and eviction protections are available at Housing Action Illinois and are updated as they become available. Another site, rentervention.com, focuses on Chicago residents, but can assist any Illinois resident.

Housing Counseling: Housing counselors can provide advice on buying a home, renting, loan defaults, foreclosures, and credit issues. Many housing counseling organizations do financial wellness education at no cost to the participant. Local Chicago examples are Spanish Coalition for Housing and Chicago Urban League.

Prioritize Essential Expenses First

Pay for essential needs before anything else. Essentials include shelter (mortgage or rent), food, and utilities. Before an unpaid bill can be reported to the credit bureaus, which would harm your credit score, it must be at least 30 days late. A single late payment fee is preferable to a high-cost loan, which will cost you much more in fees. If you are uncertain about which option might be preferable, you can always call Capital Good Fund’s financial coaching hotline.

Contact your lender. Options may include changing the due date of your payments, creating a new repayment plan to lower your monthly payment, or deferring (postponing) your payments.

Each major Illinois utility has its own bill assistance program: ComEd, Peoples Gas, North Shore Gas, Nicor, and Ameren. Explain that you are experiencing a COVID hardship. This will help you access funds and policies set aside for COVID support.

If you are lower income, contact both your utility provider and the state utility assistance program. Visit the State of Illinois Utility Bill Assistance website or call 877-411-WARM (9276) for assistance with your electric or gas bill (Mon–Fri, 8 am–5 pm).

President Biden extended the COVID-related loan payment suspension on certain federal loans to January 31, 2022. If your loans are not covered by the President’s order or if you are unsure, contact your student loan servicer and explain your hardship.

Ask about an income-driven repayment plan (making your payments affordable based on your income), a deferment of payments, or a forbearance, which is a temporary pause making loan payments. A new, free online service called Summer can help you simplify your loan payments and maximize savings.

Many people pay their bills through automatic, recurring payments (e.g., subscriptions, gym memberships, loans, credit cards). Contact the companies that deduct money through autopay to request COVID-hardship relief. They may be willing to temporarily freeze your account. If that’s not an option, you have the right to revoke your authorization for the company to deduct money. You will probably still owe the company money, but you can manually control the timing of the payment and make the payment only after you have paid for essential items.

Major credit card companies have COVID assistance programs. Visit the credit card company’s website. If you cannot find one online, call them to request COVID relief. Most companies will allow you to postpone paying your bill for a time without incurring late fees.

Prefer Talking to a Live Person? Ask a Financial Coach.

Capital Good Fund’s financial coaching hotline provides one-on-one financial advice to any Illinois resident. Starting at $15 per month, the nonprofit can create a plan with you and can advocate on your behalf with creditors. They also offer a credit-builder program for $5 per month. Call 866-584-3651 (English or Spanish)

The City of Aurora’s Financial Empowerment Center provides free, high-quality, one-on-one financial counseling to low-and moderate-income residents of the Aurora region. Learn more here.

Contact the medical provider/biller and explain that you are unable to pay the bill due to a COVID hardship and request a payment plan. If you do not have success with one representative, ask to speak to a supervisor who may be able to help more. Medical providers would rather put you on a payment plan than refer the account to a collection agency.

If you owe child support and are unable to make the payments, first notify the person who receives the support. The State of Illinois also provides free child support services. Find an online application for services here. You can also call 800-447-4278 or visit any Department of Child Support Services office. These services can also assist you if you are owed child support.

If you cannot afford to make your child support payments, the court may modify your obligation if you have lost your income or have another major hardship. The Greater Chicago Legal Clinic has a helpline to learn more at 312-796-3070. Illinois Legal Aid Online has an online guide to help you with paperwork.

Request a payment plan. If you already have a payment plan but are unable to afford the monthly payments, ask to adjust the plan.

Collection agencies would rather you pay something than refer it to their lawyers to collect through the court system. Staying in communication with them is most important. If a creditor or collection agency has sued you or is threatening to sue you, call legal aid.

• In Northern Illinois, call Prairie State Legal Services at 888-966-7757 (Mon–Thurs 9 am–1 pm).
• In Chicago or suburban Cook County, call Legal Aid Chicago at 312-341-1070.
• In Central or Southern Illinois, call Land of Lincoln Legal Aid at 877-342-7891.

Many charities provide free food, free clothing, and other essentials. Catholic Charities locations across Illinois offer assistance regardless of your religion. A financial coach can also help direct you to resources.