The government shutdown is over for now but the repercussions can have long-term affects.
After 35 days the government shutdown ended on January 25, 2019. Federal employees, unlike the president and Congress missed 2 pay periods. Mortgage companies, banks, and credit card companies are among the many creditors that will continue to send bills to Federal employees until they are caught up.
Now is not the time to allow your credit to be ruined due to the callous decisions of the president and Congress. While most banks don't have a specific plan in place to deal with the influx of missed payments, anyone experiencing difficulties should contact their bank, credit union or credit card company.
Mortgage Assistance for federal employees.
Fannie Mae and Freddie Mac are making it easier for furloughed workers to refinance and use their equity to cover short-term expenses. Refinancing has been made easier. For now, employees just need to have two months of cash reserves to cover their mortgage payments.
More lenders offering mortgage, personal auto loan and credit card assistance.
Other lenders that have announced assistance programs include USAA, Navy Federal, PenFed, FedChoice, Wells Fargo and BBVA Compass.
JPMorgan Chase is waiving all checking account fees, including overdraft charges, for federal employees that get direct deposit. The bank has pledged to work with customers who are at risk of missing payments on home, car, or credit card loans.
Here are direct contacts for some banks offering assistance:
American Express has a banner on their site offering help to their card members facing financial difficulties as a result of the shutdown. Customers who need assistance should reach out to their American Express customer care professionals via their mobile app or chat, or call the number on the back of their card.
Bank of America has a dedicated site to work with customers on fee refunds, waivers, repayment plans, and loan modifications. Contact them at (844) 219-0690 or visit your local branch.
Capital One has asked their customers to call them and has extended some loan payment due dates.
Chase Bank has a special phone number—(888) 356-0023—for impacted customers who may need a credit line or mortgage assistance.
Citi provides a dedicated site with contact numbers to offer assistance to customers who are experiencing financial hardship.
Citizens Bank has launched a dedicated government shutdown line for its impacted customers to call: (866) 991-0404.
Democracy Federal Credit Union is offering a short-term emergency loan with 0% interest, loan extension or deferment, and free financial counseling for customers on its website. You can also call (800) 742-5582.
FedChoice Federal Credit Union offers several relief options for mortgage and banking customer on its website that include short-term, low-interest furlough loans and mortgage refinancing options.
Navy Federal Credit Union is offering a 0% APR loan up to $6,000 for some customers affected by the shutdown. You can register on Navy Federal's website, in branches or by phone at (888) 842-6328.
PNC Bank has asked customers to reach out directly for assistance by calling (888) 762-2265.
USAA is offering loan and other relief to impacted customers on its website. You can also call (800) 531-8722 for assistance. Special government shutdown loan program to support eligible members who are active Coast Guard, Coast Guard Reserve, National Oceanic and Atmospheric Administration Corp, the Public Health Service Corps and their spouses. Other programs are offered to federal employees.
U.S. Bank says it will assist customers who may be eligible for mortgage relief programs, including loan forbearance and deferred first payment dates for new mortgages. Payment plans may also be available for those who qualify. Call their customer service line at (877) 760-6046.
Wells Fargo is offering forbearance and other payment assistance programs to its mortgage clients on a case-by-case basis. You can call (888) 219-9739 or visit the Wells Fargo website to get more details.
How to Prepare for Future Hardships.
The government shutdown revealed some shocking facts about what "middle-class" Americans really experience. According to CNBC "only 39% of Americans have enough savings to cover a $1,000 emergency," the government shutdown has proven this. Far too many people lack resources to comfortably live through financial hardships.
1. Set up an emergency fund. If you don't already have an emergency cash fund, open a high-interest savings account specifically for this purpose. You can have a small portion of your paycheck direct-deposited into this account to help build some security in case you need it.
2. Maintain a clean credit report. Having good credit scores before an emergency can help you get approved for a loan if you find yourself caught in another shutdown. You can review your credit reports for free once a year by contacting annualcreditreport.com.
3. Pay down your debt. It can be hard to start paying off credit card balances. But once you learn how paying down debt can improve your credit scores, it will become easier. If you're struggling with multiple credit payments, you may want to consider a debt consolidation loan.
4. Cut your costs. Budget can seem like a bad word in a world of instant gratification. But cutting costs can stretch your paycheck. There are simple ways to save money, that can seem effortless. You just have to start.