Money Crisis Ladder#

Three linked phases for the full spectrum of financial crisis — from the acute emergency to long-term recovery. Most financial advice is either too vague ("cut expenses") or too specific for stable people. This covers real austerity: what to pay, what to cut, who to call, and how to build the buffer that means the next crisis is an inconvenience, not a catastrophe.

Programs and phone numbers in Phase 1-2 are US-centric. The agent adaptation block below explains how to localize for other countries.

agent-adaptation

# Localization required — this protocol references US-specific programs.
# Agent must follow these rules when working with non-US users:
- Detect user's country/region from profile, conversation context, or by asking.
- If non-US: research and substitute local equivalents for all referenced
  programs, laws, hotlines, and services. Examples:
  - SNAP (food stamps) → Jobseeker's Allowance/Universal Credit (UK),
    Hartz IV/Bürgergeld (Germany), DSP/JobSeeker (Australia),
    Ontario Works/BC Income Assistance (Canada), RSA (France)
  - Medicaid → NHS (UK), Medicare/PBS (Australia), provincial coverage (Canada),
    Krankenkasse/GKV (Germany), CMU-C (France)
  - LIHEAP → Warm Home Discount (UK), Ontario Energy and Property Tax Credit (Canada)
  - 211 helpline → local social services directory for that country/region
  - TANF → Child Tax Credit/Working Tax Credit (UK), Family Allowance equivalents
  - Federal student loan forbearance → national student loan equivalents
- Always cite the sources you used when substituting local programs.
- Always warn the user: "This step references [US program] — I have substituted
  [local equivalent], but verify this applies to your specific situation."
- If jurisdiction is unclear: ASK the user for their country/region before
  proceeding with any jurisdiction-specific step.

Sources & Verification#

• SNAP: USDA Food and Nutrition Service ( fns.usda.gov/snap)
• LIHEAP: ACF Office of Community Services ( acf.hhs.gov/ocs/programs/liheap)
• Emergency Rental Assistance: US Treasury ( home.treasury.gov)
• 211 helpline: United Way ( 211.org)
• NeedyMeds prescription assistance: ( needymeds.org)
• Benefits screening: benefits.gov
• Federal Poverty Level guidelines: HHS ASPE ( aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines)
• Income-driven student loan repayment: Federal Student Aid ( studentaid.gov)
• Mortgage forbearance: CFPB ( consumerfinance.gov/housing)
• FDIC deposit insurance: fdic.gov — verified active March 2026
• NFCC non-profit credit counseling: nfcc.org — verified active March 2026
• Federal Reserve 2023 data: 37% of US adults cannot cover a $400 emergency from savings
• Payday loan APR data: CFPB, "Payday Loans and Deposit Advance Products," 2013

When to Use#

• Can't make rent or mortgage this month
• Income dropped dramatically (job loss, pay cut, divorce, disability)
• Behind on multiple bills and doesn't know where to start
• Utilities about to be shut off
• Needs to cut expenses by 40-60% or more
• Has no savings buffer and wants to build one
• Living paycheck to paycheck and wants a concrete system

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PHASE 1: EMERGENCY TRIAGE#

Use when: immediate financial crisis — can't pay bills right now.

Instructions: Safety Check First#

STOP. Before proceeding, the agent MUST ask:

"Before we start, I need to ask: are you safe right now? Is someone controlling your finances or threatening you?"

• If financial abuse or domestic violence is present: redirect to the safe-exit-planner skill. Provide: National Domestic Violence Hotline 1-800-799-7233 or text START to 88788.
• If having thoughts of self-harm: provide 988 Suicide & Crisis Lifeline (call or text 988) immediately.
• If safe: proceed.

Instructions: Payment Priority#

When you can't pay everything, there is a correct order. This is based on consequences, not creditor pressure.

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PAYMENT PRIORITY (most urgent first):

1. FOOD — Apply for SNAP today (benefits can arrive in 7 days)
   → SNAP enrollment: fns.usda.gov/snap
   → Local food banks: feedingamerica.org/find-your-local-foodbank
   → WIC (pregnant women/children): fns.usda.gov/wic

2. ESSENTIAL MEDICATION — Don't skip meds
   → NeedyMeds.org — discount drug programs
   → GoodRx.com — prescription price comparison
   → Patient assistance programs (call number on drug's website)
   → $4 generic lists at Walmart, Costco (no membership needed)

3. HOUSING — Rent or mortgage
   → Call landlord BEFORE the due date:
     "I'm having a financial emergency. Can we discuss a payment plan?"
   → Apply for Emergency Rental Assistance: treasury.gov/rental-assistance
   → Call 211 for local housing assistance programs

4. UTILITIES — Power, water, heat
   → Call each provider and ask for a "hardship plan"
   → LIHEAP (utility assistance): liheap.org
   → Most states prohibit utility shutoffs in extreme weather

5. TRANSPORTATION — If needed for work
   → Car payment before insurance (can't drive without the car)
   → If facing repossession: call lender about forbearance

6. EVERYTHING ELSE — credit cards, medical debt, student loans
   → These can wait. They damage credit but can't take your home.
   → Federal student loans: apply for income-driven repayment ($0/month possible)
   → Credit cards: call and ask for hardship program
   → Medical debt: does not go to collections for 180 days typically

WHAT MOST PEOPLE GET WRONG:
Medical debt and credit card debt feel urgent because collectors call.
But they can't take your house or put you in jail.
Pay housing and food first. Always.

Instructions: Immediate Cash Sources#

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WHERE TO FIND MONEY THIS WEEK:

□ 211 (dial 2-1-1) — connects to ALL local assistance programs
□ Salvation Army / St. Vincent de Paul — emergency financial assistance
□ Local churches — many have emergency funds for anyone, not just members
□ Employer advance — many employers offer paycheck advances
□ State Emergency Assistance — search "[your state] emergency cash assistance"
□ Modest Needs (modestneeds.org) — grants for people in temporary crisis
□ United Way — 211 connects you or visit unitedway.org

DO NOT:
✗ Take out a payday loan (300-500% APR — will make things worse)
✗ Borrow against your 401k unless truly last resort
✗ Use title loans (you will lose your car)

Instructions: Creditor Call Script#

The single most important thing: CALL BEFORE YOU'RE LATE. Every creditor has hardship programs they don't advertise.

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CREDITOR CALL SCRIPT:

"Hi, I'm calling because I'm experiencing a financial hardship
due to [job loss / medical emergency / income reduction].
I want to stay current on my account. Do you have any hardship
programs, payment plans, or temporary forbearance options?"

FOR EACH CREDITOR, ASK:
→ Can payments be deferred?
→ Can late fees be waived?
→ Is there a hardship/forbearance program?
→ Can the due date be moved?
→ GET THE REPRESENTATIVE'S NAME AND CONFIRMATION NUMBER.

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PHASE 2: AUSTERITY MODE#

Use when: income has dropped significantly and you need to survive on dramatically less.

Instructions: The Austerity Payment Hierarchy#

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PAYMENT PRIORITY TIERS:

TIER 1 — SURVIVAL (pay these first, no exceptions):
[] Food
[] Shelter (rent/mortgage)
[] Utilities (minimums)
[] Essential medication
[] Transportation to earn income

TIER 2 — LEGAL CONSEQUENCES (pay next):
[] Child support (non-payment = jail)
[] Tax debts
[] Court-ordered payments

TIER 3 — NEGOTIATE THESE (call before they call you):
[] Car payment (ask for deferment or lower payment)
[] Student loans (apply for income-driven repayment: $0/month possible)
[] Insurance premiums (reduce coverage to minimum required)
[] Medical debt (lowest real priority despite what collectors say)

TIER 4 — STOP IMMEDIATELY:
[] All subscriptions and memberships
[] Dining out and delivery
[] New clothing purchases
[] Any automatic payment not in Tier 1-3

Instructions: Where the Real Money Is#

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HOUSING (biggest expense, biggest lever):
- Renting: can you move somewhere cheaper?
  Moving costs $500-2000 but saves $300-800/MONTH
- Can you take on a roommate? (it works)
- If you own: can you rent a room? Refinance? Ask about forbearance?
- Call landlord/mortgage company BEFORE you're behind

FOOD ($200-300/month for one person is realistic):
- Meal plan around rice, beans, eggs, potatoes, frozen veg,
  bananas, oats, chicken thighs, canned tomatoes
- See Module C/D of the survival-basics skill for the full system
- Food banks exist and are not shameful: feedingamerica.org

TRANSPORTATION:
- If you have a car payment you can't afford: can you sell the car
  and buy a $3-5K reliable used car outright?
  Eliminating a $400/month payment + higher insurance is enormous.

PHONE/INTERNET:
- Switch to $15-25/month prepaid (Mint, Visible, Cricket)
- vs major carriers: $65-100/month for the same coverage
- Cancel all streaming. Use the library for entertainment.

INSURANCE:
- Health: if you lost employer coverage, apply for Medicaid
  immediately if income qualifies. If not, get cheapest ACA plan.
- Car: raise deductibles to maximum to lower premiums
- Cancel any insurance that isn't legally required

Instructions: Negotiation Calls#

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CALL SCRIPT FOR EVERY CREDITOR:

"I'm experiencing a significant reduction in income and I want to
keep paying but I need help. What options do you have for:
- Temporary payment reduction
- Deferment or forbearance
- Hardship programs"

SPECIFIC CALLS:
[] MORTGAGE: forbearance (3-12 months of reduced/no payments)
[] CAR LOAN: deferment (skip 1-3 payments, added to end)
[] CREDIT CARDS: hardship rate reduction (many drop to 0-5%)
[] STUDENT LOANS: income-driven repayment online (studentaid.gov)
[] UTILITIES: budget billing and low-income assistance (LIHEAP)
[] MEDICAL DEBT: negotiate hard — hospitals accept 20-60% of the bill.
   Never pay the full amount without negotiating first.

CALL BEFORE YOU'RE BEHIND. Being proactive gets better options.

Instructions: Protecting Your Mental Health While Broke#

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FREE THINGS THAT KEEP YOU SANE:
- Library: books, movies, wifi, community events
- Walking/running outside: free, improves mental health more than
  most things you can buy
- Cooking: creative, productive, saves money simultaneously
- Community: churches, community centers, volunteer orgs — free
  social connection

THINGS TO PROTECT (even on austerity):
- One social activity per week (free or very cheap)
- Physical movement every day
- Sleep

THINGS THAT FEEL FREE BUT COST:
- Scrolling shopping sites (you will buy something)
- "Free trials" (you will forget to cancel)
- Driving around to "clear your head" (gas adds up)

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PHASE 3: EMERGENCY FUND BUILDER#

Use when: income is stabilizing and you want to prevent the next crisis.

Instructions: Calculate Your Real Number#

"Three to six months of expenses" is useless without a concrete number.

Agent action: Walk the user through this calculation interactively, one category at a time. Record each number and calculate the total.

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MONTHLY ESSENTIALS CALCULATOR:

Housing: rent or mortgage + insurance: $______
Utilities: electricity + gas + water + internet + phone: $______
Food: groceries (realistic average, NOT restaurants): $______
Transportation: car payment + insurance + gas OR transit: $______
Health: insurance premium + prescriptions: $______
Minimum debt payments: $______

TOTAL MONTHLY ESSENTIALS: $______

YOUR TARGETS:
  Starter (1 month): $______ ← START HERE
  Full (3 months):   $______ (total x 3)
  Secure (6 months): $______ (total x 6)

DON'T LET THE 6-MONTH NUMBER PARALYZE YOU.
Getting to 1 month first is the only goal.

Instructions: Find the Money#

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WHERE THE MONEY COMES FROM:

SUBSCRIPTION AUDIT (20 minutes, easiest wins):
  List every subscription you pay for. For each: when did you last
  use it? If over 30 days: cancel.
  Expected savings: $20-100/month.

  How to find hidden subscriptions:
  - Check bank statement for recurring charges
  - Search email for "receipt" and "subscription"

PHONE PLAN SWITCH:
  Most people overpay by $20-40/month.
  MVNOs (same networks, fraction of price):
    Mint Mobile: ~$15-25/month
    Visible: ~$25/month
  vs major carriers: $65-100/month

ONE-TIME INCOME SOURCES:
  - Sell unused items (Facebook Marketplace, eBay)
  - Tax refund: redirect directly to emergency fund
  - Side work: redirect first few paychecks

Instructions: Open the Right Account#

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EMERGENCY FUND ACCOUNT REQUIREMENTS:

MUST HAVE:
[ ] FDIC insured (banks) or NCUA insured (credit unions)
    — up to $250,000 per depositor. Safe even if bank fails.
[ ] No monthly fees
[ ] No minimum balance requirements
[ ] Easy transfer to checking in 1-3 business days

SHOULD HAVE:
[ ] High-yield savings (HYSA)
    As of March 2026: competitive HYSAs offer 4-5% APY.
    Check current rates: bankrate.com/banking/savings/

DO NOT USE:
[ ] Your checking account (too easy to accidentally spend)
[ ] Cash at home (no interest, theft/fire/flood risk)
[ ] Crypto or investments (value can drop 50% right when you need it)
[ ] CDs or accounts with early withdrawal penalties

CREDIT UNION OPTION:
  Non-profit, often better rates than banks.
  Find one at: mycreditunion.gov

Instructions: Automate and Protect#

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AUTOMATION SETUP:
1. Open the savings account
2. Set automatic transfer from checking to savings:
   - Amount: whatever you found in the previous step
   - Timing: THE DAY AFTER PAYDAY (money you never see, you never spend)
   - Do this at your bank's website or app — takes 5 minutes

STARTING SMALL IS CORRECT:
  $25/month = $300/year (plus interest)
  The habit matters more than the amount.
  $25 → $50 → $100 as income stabilizes.

WHAT COUNTS AS AN EMERGENCY:
  [ ] Job loss or sudden income interruption
  [ ] Medical bill or unexpected health cost
  [ ] Essential car repair (needed to get to work)
  [ ] Home repair affecting habitability
  [ ] Family emergency requiring travel

WHAT DOES NOT COUNT:
  [ ] Holiday gifts (predictable — plan for it separately)
  [ ] Sales or deals
  [ ] Travel
  [ ] Upgrading something that still works

THE FRICTION TRICK:
  Keep the emergency fund at a DIFFERENT bank than your checking.
  The 1-3 day transfer delay is a feature, not a bug.
  It forces you to confirm the spending is genuinely necessary.

IF YOU USE IT:
  Replenish before you stop. This is not a failure — it is the fund
  doing its job. Set a new transfer at the same or higher amount.

If This Fails#

Phase 1 (crisis):

1. 211 not available: try findhelp.org — enter zip code for local programs
2. SNAP denied: appeal within 90 days. Most denials are missing documents, not ineligibility
3. About to be evicted: contact legal aid at lawhelp.org — many eviction defense services are free
4. Utilities already shut off: call utility company for reconnection on a hardship plan. Apply for emergency LIHEAP
5. Overwhelmed: call or text 988

Phase 2 (austerity):

1. Can't cover rent even after cutting everything: contact 211 immediately for Emergency Rental Assistance
2. Can't afford medication: needymeds.org, $4 generics at Walmart/Costco
3. Debt still piling up: see the debt-survival skill
4. Breaking you mentally: call or text 988. Free counseling via community mental health centers — call 211

Phase 3 (rebuilding):

1. Income doesn't cover essentials: this is a benefits or income problem. See the benefits-navigator skill
2. Keep spending the emergency fund: move it to a bank with no debit card access
3. Debt payments are too high to save anything: NFCC non-profit credit counselor at nfcc.org — free or low cost

Rules#

• Lead with Phase 1's triage order — people in crisis need priorities, not options
• Food and medication FIRST, always
• Never recommend payday loans, title loans, or high-interest debt
• If someone mentions financial abuse or feeling unsafe, redirect to safe-exit-planner
• Never moralize about financial situations — austerity is a response to circumstances, not a character flaw
• Medical debt and credit card debt collectors are not the priority — housing and food are
• If income is genuinely below survival cost, say so — budgeting harder will not fix a structural gap

Tips#

• 211 is the most underused resource in the US. It connects to every local program that exists.
• Most hardship programs require you to ASK — they don't offer automatically
• Medical debt is the most negotiable debt. Hospitals accept 20-60% of the bill.
• The single biggest savings lever most people miss: a car payment. Selling a $15K car and buying a $4K reliable used car saves $400+/month in payments plus cheaper insurance.
• The transfer timing (day after payday, not end of month) is the most impactful behavioral design choice in personal savings.
• "I can't afford that" is a complete sentence. You don't owe an explanation.

Agent State#

Persist across sessions:

yaml

money_crisis:
  phase: null           # 1 | 2 | 3
  safety_check_done: false
  phase_1:
    tier_1_covered: false
    snap_applied: false
    creditors_called: []
    assistance_applied: []
  phase_2:
    monthly_income: null
    monthly_minimum_expenses: null
    runway_months: null
    bills_negotiated: []
    expense_cuts_made: []
  phase_3:
    monthly_essentials: null
    targets:
      one_month: null
      three_months: null
      six_months: null
    current_balance: null
    automatic_transfer:
      amount: null
      day: null
      set_up: false
    milestones:
      first_100: false
      one_month: false
      three_months: false
    emergency_definition: []
    subscriptions_cancelled: []
    flags:
      income_gap: false
      debt_counselor_referred: false
      unbanked: false

Automation Triggers#

yaml

triggers:
  - name: creditor_call_reminder
    condition: "phase == 1 AND any creditors not yet called"
    schedule: "daily until all calls made"
    action: "You still have creditors to call. Today: call [next creditor]. Use the script. Get their name and confirmation number."

  - name: monthly_austerity_review
    condition: "phase == 2"
    schedule: "monthly on the 1st"
    action: "Monthly money check: What came in? What went out? Are you staying within the austerity plan? Recalculate runway."

  - name: transfer_reminder
    condition: "phase == 3 AND automatic_transfer.set_up == false"
    action: "Savings automation not yet set up. This is the most important step. Ready to set up the transfer? It takes under 5 minutes."

  - name: milestone_checkin
    condition: "phase == 3 AND current_balance >= targets.one_month AND milestones.one_month == false"
    action: "You hit your 1-month emergency fund target. That is a real milestone. Next target: 3 months. Ready to increase the automatic transfer?"