Title: How to Seek Financial Assistance Amid Government Shutdown
Subtitle: Living paycheck to paycheck poses a threat as government shutdowns loom
Date: [Current Date]
In the face of an impending government shutdown, thousands of federal employees and contractors find themselves grappling with the prospect of being unable to pay their bills, including rent, mortgages, and credit card dues. Furthermore, workers in industries that rely on federal spending or tourist income, such as hospitality and restaurants, may also be severely negatively affected. Unlike federal employees, these workers are not guaranteed backpay, making even a single missed paycheck a crisis for those already living on the edge.
However, for those facing financial hardship due to a government shutdown, help may be just a phone call away. Experts suggest taking proactive measures to communicate with landlords, mortgage loan servicers, and credit card companies to explore various options for assistance.
First and foremost, it is advised to stay in constant contact with landlords to discuss the financial difficulties caused by the shutdown. Tenants can propose extensions, partial payments, or inquire if their security deposit can be used towards rent. Moreover, tenants can request payment plans for missed rent and ask for waivers on late fees and penalties to mitigate the impact of a late payment.
In regard to mortgages, individuals should contact their loan servicers to explain their situation. Lenders have offered a range of help during previous government shutdowns, such as forbearance, which temporarily suspends payments without negatively affecting credit scores. Financial institutions including PenFed Credit Union, USAA Federal Savings Bank, and Navy Federal Credit Union have already announced emergency furlough relief assistance programs for members affected by a shutdown.
Likewise, credit card companies can provide assistance to those struggling to make payments. Some institutions, like USAA, are waiving minimum credit card payments for three months, while others offer deferrals on consumer loan payments. The key to avoiding detrimental credit score impacts is to communicate with credit card companies and ask for payment breaks or alternative arrangements.
Experts stress the importance of seeking help as soon as possible, rather than allowing the crisis to escalate. Taking proactive measures can save individuals from experiencing severe financial implications. Personal finance resources, such as Michelle Singletary’s “Money Milestones,” or reaching out to Washington Post columnist Michelle Singletary at 1-855-ASK-POST (1-855-275-7678), can also provide further assistance.
While living paycheck to paycheck inevitably leaves little margin for error, seeking help in times of financial crisis can help alleviate some of the hardships caused by a government shutdown.
Disclaimer: This article merely provides suggestions for seeking financial assistance during a government shutdown and does not serve as professional financial advice. Individuals should consult with appropriate financial advisors or resources tailored to their specific circumstances.