How to Survive (Financially) a Government Shutdown
When paychecks pause but bills don’t, even a short-term government shutdown can create real stress for federal employees, contractors, and families who depend on that income. If you’re feeling anxious, you’re not alone, and you’re not without options. This guide offers steady, practical steps to help you stay grounded until normal pay resumes, along with support available through People Driven Credit Union (PDCU).
PDCU’s Government Furlough Assistance Program
We’re here to help you bridge the gap. For qualifying members who provide furlough documentation, our program offers:
- Furlough Loan: Get temporary relief with 0% interest and no payments for 60 days to help cover essential expenses.
- Payment Extension: Eligible members can defer loan payments for up to 60 days with no extension fee, giving you extra breathing room when you need it most.
- GreenPath Financial Counseling: Access free, confidential financial guidance to help you manage your budget, prioritize expenses, and plan next steps.
We’ll review your situation with care and help you choose the options that fit your budget.
1) Start with the Essentials
Prioritize housing, utilities, food, medication, and transportation. If money is tight, pay these first. Unsecured debts (like credit cards) can often be deferred or placed on a hardship plan your essentials come first.
2) Contact Creditors Before You Miss a Payment
Reach out early and explain that you’re affected by a federal furlough. Many lenders including People Driven Credit Union may offer extensions, fee waivers, temporary forbearance, or short-term assistance. Early communication can help protect your credit and reduce stress.
At PDCU, you may also qualify for special options such as a Payment Extension and our annual Skip-a-Pay program, which allows members to skip one loan payment per year on eligible loans. These tools can give you the flexibility you need to stay current while managing temporary income loss.
3) Be Cautious with “Fast Cash” Offers
Payday loans and high-interest cash advances can make a tough month even harder. Compare total costs and repayment timelines. If you need a bridge, consider PDCU’s Government Furlough Assistance options designed to be a short-term, low-cost safety net.
4) Understand Back Pay & Unemployment Basics
- Back pay: Furloughed federal employees are typically guaranteed back pay when the shutdown ends under the Government Employee Fair Treatment Act of 2019.
- Contractors: Federal contractors are generally not covered by back pay provisions; plan as if pay won’t be retroactive.
- Unemployment (UCFE): Furloughed federal employees may be eligible depending on state rules. Essential (excepted) employees working without pay are generally ineligible. Check details with your state agency and OPM.gov.
5) Tap Community & Member Resources
- 211.org or dial 211 for food, housing, and utility support.
- Federal Employee Education & Assistance Fund (FEEA) for hardship loans/grants (eligibility applies).
- Financial counseling through GreenPath Financial Wellness—a trusted nonprofit that can help you build a short-term plan and navigate debts.
6) Keep Perspective & Care for Yourself
Shutdowns are disruptive and emotionally draining. Take breaks from the news when it’s overwhelming, lean on your support network, and give yourself credit for taking thoughtful steps. This is temporary; your plan will carry you through.
We’re Here to Help
If you’re impacted by the federal shutdown, talk with us about the Government Furlough Assistance Program. We’ll walk through your options and help you choose next steps that protect your budget and credit.
Program availability, terms, and eligibility are subject to change without notice. Documentation of furlough status is required. Membership at People Driven Credit Union is required for program participation. Other restrictions may apply.
