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How The Government Shutdown Affects Your Credit and Finances [Infographic]

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Despite all hope, the government shutdown commenced on Monday after Congress failed to pass the new budget. 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?

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Page 1: How The Government Shutdown Affects Your Credit and Finances [Infographic]

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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.

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.

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.

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.

WHAT CAN YOU DO?

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VA benefits

Health care

Educational loans

Housing

Military wages

Job security

Social Security,Medicare & Medicaid

An extended shutdown (i.e., more than two weeks) will lead to dangers involving:

LONG-TERM EFFECTS

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.

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.”

National Archives. Lack of immediate funding will likely close the National Archives during the shutdown.

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.

VA disability claims. While VA medical care is not immediately affected, VA-sponsored benefits programs could see cutbacks and delays.

Immigration services. Although immigration services will continue, employers will not be able to verify employees’ legal status during the shutdown.

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.

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.

THE UNDECIDEDS:

U.S. Capitol. D.C. tours are closed until further notice, (though some veterans aren’t taking no for an answer).

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.

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).

CLOSED:

Military. While the military will remain active, it is unclear how long personnel will receive wages and benefits during the shutdown.

Amtrak. Commuters who rely on the Amtrak will have a reliable mode of public transportation.

Patent and trademark office. Patent and trademark applications will still be processed during the shutdown.

SNAP. Supplemental Nutrition Assistance Program (formerly known as food stamps) will continue to be funded through the end of October.

Federal prisons. Breathe easy on this one. Inmates will remain incarcerated.

Federal courts. Reserve funds will allow federal courts to remain operational until mid-October.

Public schools. Despite the Department of Education’s closure, public schools will remain open.

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.

Social Security, Medicare and Medicaid. These programs are federally- mandated and benefits will be paid during the shutdown.

U.S. Postal Service. The U.S. Mail is an agency independent of the government and will continue to operate without delay.

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 shutdown continues.

REMAINING OPEN:

First things first: What are the short-term effects? Here’s a breakdown of government entities, programs, and their statuses:

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?

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