3 Financial Tips for Federal Workers Furloughed by Shutdown

The ongoing government shutdown, now in its third week, is causing financial strain for an estimated 750,000 furloughed federal workers. These workers, deemed “nonessential,” are currently without pay and facing mounting bills while their paychecks are on hold due to the political deadlock.

Financial planners specializing in working with federal employees are offering advice to help these workers navigate the uncertainties of the shutdown. Wes Battle, a certified financial planner at Financial Advantage Associates, acknowledges the challenges federal workers are facing, stating that shutdowns are never easy on the employees who serve.

One key piece of advice from financial planners is to prioritize bills during this time of financial uncertainty. Patrick Huey, a CFP and owner of Victory Independent Planning, recommends focusing on essential expenses like housing, utilities, insurance, and basic health needs. Nonessential expenses like credit card payments and streaming services can be deferred if necessary to prioritize survival essentials.

While it may be tempting for furloughed workers to rely on credit cards for expenses during the shutdown, financial advisors caution against accumulating credit card debt. Instead, they suggest exploring alternatives like tapping into Thrift Savings Plans (TSPs) for low-interest loans to cover essential expenses without incurring high-interest credit card debt.

Communication is also crucial during this time. Financial planners advise federal workers to contact creditors, landlords, and mortgage lenders to inform them of the furlough and explore potential relief options. Some lenders are offering assistance to furloughed workers, such as freezing credit reporting and waiving fees for missed payments.

Community organizations may also provide assistance to federal workers during the shutdown. Websites like My Fed Benefits offer a tool to help workers find local financial assistance programs and discounts on essential services.

In conclusion, financial planners recommend federal workers prioritize essential bills, avoid credit card debt if possible, communicate with creditors, and explore community resources for assistance during the government shutdown. By taking proactive steps and seeking support, furloughed workers can navigate the financial challenges of the shutdown with greater ease.