Finding help in hard
times -- Page 2
Then there are the government assistance channels.
Cruise the Internet to find Web sites for your city, county or state governments
or check your local phone book's white pages if you prefer to speak directly to
someone. Use these offices as resources to find leads to free or low-cost help,
such as medical care for children. The local Department of Health and Human Resource
Development is a good place to start.
Web pages often include aid listings. Some local jurisdictions even have specific
sites to showcase available assistance. Two examples: Massachusetts operates MassResources.org
and the city of Worcester, Mass., has its own site dedicated to local assistance
programs and organizations.
It gets a bit more difficult, however, when you actually
ask the government for direct help. A family that has been solidly middle-class
but now faces financial trouble might not be able to get much official assistance.
While you may not have enough money to pay your bills, some income (one spouse
still working) and assets such as a car or savings account could disqualify you.
"Government aid is pretty tough to get," Hofer says.
"What happens is that aid eligibility isn't based just on income, but also
assets. So a family that has recently fallen on hard times may still have assets
and will be less likely to qualify."
Take the requirements
to receive food stamps. According to the United States Department of Agriculture,
which administers the program, households may have $2,000 in what is termed countable
resources. (The limit's a bit higher for families that include a person who is
older than 60 or is disabled). Your resources also include a portion of the value
of any vehicle you own.
Plus, recipient income is capped.
The food stamps program restricts eligibility by gross income as well as net income,
a lower amount reached after taking certain deductions, such as some dependent
care costs or uninsured medical expenses for disabled or elderly family members.
Currently, the monthly gross income limit for a family of four is $1,994; the
net amount cannot exceed $1,534.
The federal government
also has a fuel assistance program, the Low-Income
Home Energy Assistance Program (LIHEAP), which administers the National Energy
Assistance Referral project. But LIHEAP, like many other state or local government
programs, is designed for low-income families rather than those who are financially
stressed but still have assets.
Many states do offer assistance
programs for families with children. A popular one is subsidized health care,
identified by the acronym for State
Children's Health Insurance Program. SCHIP was created by federal legislation
in 1997 to allow each state to offer health insurance for children up to age 19
who are not already insured. Although designed as a federal-state partnership,
each state sets its own guidelines regarding eligibility and services; program
budgets are based on individual state finances, meaning a state's child health
care funding depends on how much money the state has, not necessarily the need
for the coverage. And like their federal assistance counterparts, state-run programs
have economic requirements that a family new to hard times may not be able to
Getting help in the proper order
That's why it's better to start with the non-government assistance sources. These
groups' eligibility requirements are not as stringent and are more flexible than
those of government agencies. Many let people "self-declare" whether
they are in need.
"If [former Enron CEO] Ken Lay shows
up at our door, we won't grill him," says Denton Randall, director of development
for Dare to Care Food Bank in Louisville, KY. "If someone pulls up in a Bentley
maybe we'll go beyond the normal questioning, but that really doesn't happen.
People come here when they really need help."
news is that most assistance programs are designed to provide only stop-gap help.
Food banks, for example, are meant to supplement, not supply all
the food you and your family may need. Because of that, a food bank is definitely
not one-stop shopping for all your food needs. Many people will go to a food bank
while waiting for food stamps approval or because they're not getting enough food
by using the stamps.
At Louisville's Dare to Care facility, clients
can request a week's worth of food four times in a 12-month period. The Gallatin
Valley Food Bank honors one request for four to five days of food every 30 days,
although the Bozeman-based food bank does make exceptions for people in extremely
difficult situations. "If it's a serious emergency like a family's trailer
has burned down and they have no clothes then we'll be more flexible," Grenier
Still, any bit of relief may be just what you need to
help you begin putting your financial life back in order.
remember that you can still help yourself. Call
your creditors, explain your situation and negotiate for better terms. Your
natural gas supplier may be willing to be more flexible on payment, might point
you in the direction of federal or state emergency fuel programs or offer an alternative
payment plan that is better suited to your circumstances.
C. McCune is a contributing editor based in Montana.