3OYS: Paying bills during government shutdownPosted: Updated:
PHOENIX -- If you work in any capacity for the federal government, you're going to feel the pinch from the shutdown. Federal employees, like most of us, depend on a regular paycheck. But the shutdown is causing some federal workers to stay at home. And when you stay at home, you don't get paid.
With the government shutdown, more than 800,000 federal employees now have their jobs and incomes on hold, but those bills keep on coming.
Because of forced furloughs, some people might soon find themselves in dire financial straits. Credit.Com says the shutdown could lead to a spike in payday loans across the nation. About 12 million people take out those high interest loans every year, but remember here in Arizona, payday loans are illegal. It's been that way since 2010, so you won't find any around.
Credit.Com has a few suggestions to help furloughed people meet their financial obligations.
If you have one, now is the time to tap your emergency fund to pay essential bills. Using your savings is certainly better that using a credit card.
Another option would be to apply for a personal loan to go toward reducing credit card debt, or paying for school. For those who qualify, you may be able to borrow up to $35K at lower rates.
For more information, visit www.credit.com.