Center for Siouxland's financial counseling can help Siouxlanders through pandemic

Like financial counseling agencies across the country, Center For Siouxland expected to see a huge influx of people seeking their services when the first pandemic hit it United States in the spring, Scott said. But, even as many Siouxlanders were laid off or furloughed, that increase didn't immediately materialize. Only now, are more people trickling in. 

"We had expected it to just be gangbusters here when the pandemic first hit. Our numbers really dropped off for a while," Scott said. "I kept thinking, 'What is going on?' We found out that is the same thing all over the place. We figured it must have been because of the extra help that was out there at the time."

Federal Pandemic Unemployment Compensation benefits ended July 25 in Iowa, meaning the extra $600 weekly benefit stopped. Scott said not everyone planned for that ending. Now, Scott is seeing a growing number of people trickling in for financial counseling. 

"I think it was because of the extra money people were getting from  unemployment," she said. "Now, we're starting to see our numbers pick up." 

If you spent your pandemic stimulus money on wants, rather than needs, Scott highly recommends using any future stimulus payments which could be issued by the federal government to get caught up on monthly bills. She also advises putting a chunk of it aside in savings. 

"We just don't know what the future's going to bring. Try to put some of that away," she said. "A lot of people that we work with, they don't have any savings at all or very little emergency savings. When something happens, if they don't get paid for a week or two, then it really causes a huge crisis."

Center For Siouxland offers a free, confidential consumer credit counseling program to help individuals navigate a financial crisis. Scott said the first step is making that call for help, which isn't always easy. For many, there's a lot of embarrassment that accompanies financial issues. 

Scott takes a look at a client's current expenses, as well as their normal expenses, and then works to put together a crisis budget that helps address the lower income level. 

"What happens a lot of times is we see people go through a hardship and they will go through all of their savings and start charging up money on their credit cards in order to continue their standard of living they were living before," Scott said. "Once their savings is gone and they've charged up their credit cards and they have no more resources, that's when they start figure out, 'Oh my gosh, I've gotta make some changes!'"

Scott looks at what expenses a client can cut. She said cable or satellite TV is often on the chopping block. 

What to do: "Calling the company and asking, 'Can I put this on hold for a time?' especially if you're in a contract," she said. 

Maybe there's a way to make additional income. Selling some items that you have at home that you're not using, Scott said should be considered. She said assistance programs should also be explored. For example, the Iowa Finance Authority has the COVID-19 Iowa Eviction and Foreclosure Prevention Program, which provides short-term relief to income-eligible renters and homeowners who are at risk of eviction or foreclosure.

"They will help pay rent or mortgage assistance as long as you fall within their parameters. It is an amazing program; and a lot of people aren't aware of it," said Scott, who also refers people to the City of Sioux City's housing assistance program, as well as the Community Action Agency of Siouxland, which offers financial assistance for utilities. "That's really what our goal is, to try to get people in contact with the agencies that can help them and also have a plan with their budget."