The federal government shutdown is creating financial hardship for families of federal employees facing sudden income loss.
According to the Congressional Budget Office, 750,000 federal employees per day could be furloughed during the shutdown, leaving families without regular paychecks.
“For those families, a government shutdown can feel like the rug is being pulled out from under them, especially if they’re relying on every single paycheck to pay for essentials like groceries, food, rent and utilities,” said Barin Saxton, business and community development specialist at Canopy Credit Union.
Financial institutions are offering help. “A lot of financial institutions know the government shutdown is happening and have prepared and created steps to make sure that we can help you as much as possible,” Saxton explained.
Options include payment deferrals, low-cost personal loans, and debt consolidation loans. “We also offer free financial coaching, which is available to anyone, whether you’re a member or not,” Saxton noted.
Experts recommend cutting non-essential spending. “Look at not eating out as often. Look at cutting back on your subscriptions that you might not need right now. And even pausing things like your gym membership,” Saxton advised.
Communication with creditors proves crucial. “Contacting them before you miss a payment means that they are much more willing to help you adjust your due date or work with you on payment schedules, on payment plans, while you’re going through this hard time,” Saxton said.
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