LeoYeAI 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.
# 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
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.
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
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.
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.
PHASE 2: AUSTERITY MODE
Use when: income has dropped significantly and you need to survive on dramatically less.
Instructions: The Austerity Payment Hierarchy
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
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
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
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)
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.
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
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
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
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):
- 211 not available: try findhelp.org — enter zip code for local programs
- SNAP denied: appeal within 90 days. Most denials are missing documents, not ineligibility
- About to be evicted: contact legal aid at lawhelp.org — many eviction defense services are free
- Utilities already shut off: call utility company for reconnection on a hardship plan. Apply for emergency LIHEAP
- Overwhelmed: call or text 988
Phase 2 (austerity):
- Can't cover rent even after cutting everything: contact 211 immediately for Emergency Rental Assistance
- Can't afford medication: needymeds.org, $4 generics at Walmart/Costco
- Debt still piling up: see the debt-survival skill
- Breaking you mentally: call or text 988. Free counseling via community mental health centers — call 211
Phase 3 (rebuilding):
- Income doesn't cover essentials: this is a benefits or income problem. See the benefits-navigator skill
- Keep spending the emergency fund: move it to a bank with no debit card access
- 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:
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
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?"