How The Government Shutdown Affects Your Credit and Finances

ECLOSED How Will The GOVERNMENT SHUTDOWN Affect Your Credit and Finances? Brought to you by Lexington Law. While we wait for those on Capitol Hill to resolve their issues, it's important to understand how the short and long-term effects of the shutdown relate to you. Will they affect your finances? If so, what will the change mean for your credit repair efforts? First things first: What are the short-term effects? Here's a breakdown of government entities, programs, and their statuses: REMAINING OPEN: Airports. Good news for travelers, bad news for workers. Over 14,000 air traffic controllers are currently working without pay. Their workers' union also predicted a furlough of 3,000 employees if the shutdowm continues. U.S. Postal Service. The U.S. Mail is an agency independent of the government and will continue to operate without delay. Social Security, Medicare and Medicaid. These programs are federally- mandated and benefits will be paid during the shutdown. USDA food inspections. Red meat and poultry inspections will continue for a limited time during the congressional deadlock, though the USDA may be forced to reduce workers if the shutdown persists. Public schools. Despite the Department of Education's closure, public schools will remain open. Federal courts. Reserve funds will allow federal courts to remain operational until mid-October. Federal prisons. Breathe easy on this one. Inmates will remain incarcerated. SNAP. Supplemental Nutrition Assistance Program (formerly known as food stamps) will continue to be funded through the end of October. Patent and trademark office. Patent and trademark applications will still be processed during the shutdown. Amtrak. Commuters who rely on the Amtrak will have a reliable mode -I of public transportation. Military. While the military will remain active, it is unclear how long personnel will receive wages and benefits during the shutdown. CLOSED: National museums, parks, bike trails and zoos. Community enrich- ment is sure to be bleak during the shutdown. These federally-funded attractions will be closed until a new budget is passed (don't worry, the zoo animals will be cared for). FDA food inspectors. Say goodbye to seafood and dairy products. Without FDA approval, these and other food items will not be replaced at your grocery store. U.S. Capitol. D.C. tours are closed until further notice, (though some veterans aren't taking no for an answer). THE UNDECIDEDS: PASSPORT Passport offices. Unless your local passport office is located in a government building affected by the shutdown, it should remain open. That said, it's a good idea to update your international ID as soon as possible. Government contracting jobs. The status of government contracting jobs is variable and depends on whether each project requires more funds to continue during the shutdown. Immigration services. Although immigration services will continue, employers will not be able to verify employees' legal status during the shutdown. VA disability claims. While VA medical care is not immediately affected, VA-sponsored benefits programs could see cutbacks and delays. Internal Revenue Service. Taxes are still required by law (If you filed a six-month extension in April, I'm looking at you). Despite this fact, IRS offices will probably close, temporarily delaying all work including help services, audits, meetings, refunds, and other correspondence. National Archives. Lack of immediate funding will likely close the National Archives during the shutdown. Federal websites. Good luck finding current information on government- related websites. According to WhiteHouse.gov: "Due to Congress's fail- ure to pass legislation to fund the government, the information on this web site may not be up to date. Some submissions may not be processed, and we may not be able to respond to your inquiries." You're likely to find the same sort of message on government websites until the shutdown is reversed. For the latest information, stick to national news sites. LONG-TERM EFFECTS An extended shutdown (i.e., more than two weeks) will lead to dangers involving: Job security Housing Social Security, Medicare & Medicaid Military wages Educational loans Health care VA benefits Visit lexingtonlaw.com/blog for more information. WHAT CAN YOU DO? Know the facts. If you are affected by the government shutdown, it's not enough to resign yourself to a furlough. Get the facts. Find out exactly how your salary, leave, benefits, etc., are impacted, and apply the financial changes to your budget. If you are among the em- ployees who are ordered to work without pay, learn more about the legal limitations of those orders. This strategy will help you refocus your resources during this difficult time. Halt spending. Put a stop to any non-essential spending, including investments, until the aftermath of the shutdown unveils itself. Prioritize your bills, clip coupons, and get serious about your emergency fund. We can't predict the outcome of this governmental fracture. When the future is uncertain, saving is imperative. Update your résumé. If you're facing lapsed benefits or a furloughed job, it's time to dust off your résumé and look for Plan B. It's not ideal, but protecting your finances demands assertiveness. While you can't do much about Congress, you can take steps to keep your family safe. Take advantage of every option available. Ask for help. Good news: Your electric company is not a federally-funded program. Many businesses are sympathetic in times like these, especially concerning loyal customers. If you are worried about making ends meet, call your creditors and explain the situation. Ask about temporary forbearance programs or reduced payment plans. Delaying your bills may not solve your problems, but it will protect your credit score while you are deal- ing with the side effects. Don't let government waves rob your stability. Keep your financial reputation in fighting form. Brought to you by WANT TO KNOW MORE? Lexington Law. CALL 855-255-1297