What to Do If Your Salary Is Not Enough While the Government Is Closed
Some of the 800,000 federal employees affected by the 19-day closure of the federal government have launched fundraising campaigns to cover basic costs , Quartz reports .
President Trump is demanding $ 5 billion for a wall (or … some metal rail?) Along the southern border of the United States, which Democrats refuse to sign. As a result, hundreds of thousands of federal employees have not been paid because the government remains locked, prompting some to open a campaign to raise funds on such sites like GoFundMe, to pay for food, mortgage and so on. D.
In addition to donations, workers have several other options that may not pay wages:
Communicate with lenders
According to a report by real estate company Zillow, unpaid federal workers are due to pay about $ 438 million on mortgages and rent in January alone. Add to that a credit card, utility bills, student loans and other payments, and workers who are accumulating large amounts of debt.
According to NerdWallet , affected families should prioritize calls to lenders and ask for leniency so that they can use their funds for basic necessities such as housing, food, and transportation.
“Missing one payment on a credit account — such as a credit card, mortgage, car loan, or personal loan — can lower your credit score by as much as 100 points, and a full recovery can take up to three years,” writes NerdWallet. … “Sometimes this is unavoidable, but it’s worth asking lenders if they have programs to help you avoid damage to your credit rating.”
Some lenders have options specifically for laid-off workers, so it’s worth calling and asking. If they don’t, ask if they can do something for you in the short term (especially if you have a good payment history, credit card companies and banks are likely to be more lenient). Until then, here’s how to prioritize the bills you owe in an emergency like this. Easier said than done, but making at least the minimum payments should be the priority.
Use 211
211.org is a website that helps connect people to local social services such as food, shelter, prescriptions for help and other medical issues, etc. You can visit the site or call 2-1-1 to speak with someone in person who can help you.
Find a loan with low or interest-free credit
“Many credit unions and some banks offer free or low-interest loans to federal employees who are fired during closure,” writes NerdWallet. “These include the California Credit Union, the US Navy’s Federal Credit Union, the USAA, and the US Employee Credit Union.” If you have access to these institutions, it might make sense to take out a personal loan.
These loans are preferable to payday loans, which should be a last resort. Make sure you read and understand the loan terms before signing any agreement.
Apply for unemployment benefits
If you are on vacation, you can probably apply for unemployment benefits in your state, although this varies. “In most cases, the state in which an employee is officially employed is the state that determines the employee’s eligibility for unemployment benefits under the Federal Employee Unemployment Insurance Scheme,” reports the Federal News Network. “State unemployment insurance agencies administer this program on behalf of the federal government.”
The US Human Resources Office has guidelines on how to apply , as is most likely your local news or government website .
One thing to note, according to the OPM , is that “in most states, including the District of Columbia, employees who receive unemployment benefits and also later receive a payback from their employer for the same period of time will have to pay UI Benefits Received ”.