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Fri Jan 11, 2019, 02:12 PM

Here comes the next big problem for furloughed workers

Furloughed government workers are likely missing their first paycheck of the new year on Thursday, and with that comes the potential for late credit card and mortgage payments.

The stakes are high for some federal employees. About 800,000 government workers are going without pay under the partial government shutdown, sparked by a debate between President Trump and Congress over funding a border wall. Affected employees are expected to lose an estimated $2.2 billion every paycheck, according to the Center for American Progress, a left-leaning advocacy group. Back-pay for unpaid workers is customary, but not guaranteed.

Eventually, missed payments could lead to a drop in their respective credit scores, although experts say thatís unlikely to happen immediately. These workers face a more pressing dilemma, however: There is no paycheck in sight. This partial shutdown is the second-longest in 40 years, and President Trump has said it ďcould be a long timeĒ before itís over.

Furloughed workers who have already been grappling with missed payments may have the most to lose. Credit.com has guidelines on how long it takes for a missed payment to hurt your credit score: One 30-day late payment should not cause lasting damage, unless itís part of a persistent pattern. A late payment of 60 days will likely do more damage, again if itís part of an ongoing problem. A 90-day late payment could hurt your score for seven years, it adds.

https://www.msn.com/en-us/money/personalfinance/here-comes-the-next-big-problem-for-furloughed-workers/ar-BBS4MPk?li=BBnb7Kz

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Reply Here comes the next big problem for furloughed workers (Original post)
Yo_Mama_Been_Loggin Jan 11 OP
underpants Jan 11 #1
beachbum bob Jan 11 #2
BumRushDaShow Jan 11 #5
Quiet_Dem_Mom Jan 11 #3
CountAllVotes Jan 11 #4
BumRushDaShow Jan 11 #6
Quiet_Dem_Mom Jan 11 #7
BumRushDaShow Jan 11 #8

Response to Yo_Mama_Been_Loggin (Original post)

Fri Jan 11, 2019, 02:19 PM

1. NPR this morning- trickle effect selling/buying homes

Iím not sure if issuing flood insurance is being done. It was stalled last week.

Government employees trying to buy a home or even refinance may not be able to because confirmation of wages arenít happening now. This also has an effect on the sale of homes of course.

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Response to Yo_Mama_Been_Loggin (Original post)

Fri Jan 11, 2019, 02:21 PM

2. Most lenders are taking a wait and see approach right now

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Response to beachbum bob (Reply #2)

Fri Jan 11, 2019, 02:33 PM

5. Not necessarily

A fed friend of one of my former co-workers (I am a retired fed) had told her that she and her husband were about to finalize mortgage paperwork just as this hit. The lender put the mortgage on hold due to a lack of verification of their most recent income. For many of the furloughed employees, this was a pay week (some would have been paid Tuesday and others today) and the payslip would show $0.

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Response to Yo_Mama_Been_Loggin (Original post)

Fri Jan 11, 2019, 02:24 PM

3. Do fed workers pay insurance premiums?

As a state employee (NV), a chunk o'cash goes toward my monthly health insurance premium each payday. Will the fed workers actually owe insurance premium or is it totally covered by the fed?

We've never been fully furloughed, but have had to take forced unpaid days off for quite a few years. The two days a month furlough hit our pocketbook hard. Missing an entire paycheck is an inconceivable idea to me.

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Response to Quiet_Dem_Mom (Reply #3)

Fri Jan 11, 2019, 02:30 PM

4. Depends on what type of insurance you have

Just like everything else in life, the better the policy the more it costs.

Depends on a myriad of things ranging from the cost as to how many are covered by the policy holder's policy.

It a rough deal no matter how you look at it! !!

& recommend.

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Response to Quiet_Dem_Mom (Reply #3)

Fri Jan 11, 2019, 02:43 PM

6. During past furloughs (I went through the 2013 one before later retiring)

the federal government has picked up the cost of the employee's contribution of the premium and paid the provider. Once the shutdown is over and lump sum back pay is distributed by the agency, a retroactive deduction of the employee's contribution occurs.

The question will be how long they would be willing to do this if this drags on much longer as we are about to enter uncharted territory.

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Response to BumRushDaShow (Reply #6)

Fri Jan 11, 2019, 03:15 PM

7. Thanks for the info.

Let's hope this holds true this time. The last thing fed employees need is to worry about is losing insurance on top of everything else.

But, the fact that Congress had to pass a bill to say "we promise to give you retroactive pay when it's over" to reassure fed employees...doesn't give me a whole lot of confidence that employees will get a fair shake.

Appreciate the info!

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Response to Quiet_Dem_Mom (Reply #7)

Fri Jan 11, 2019, 05:49 PM

8. The Senate passed a retroactive pay bill yesterday

and the House passed their own version of a retroactive pay bill today that is different from the Senate bill - i.e., it seeks to guarantee retroactive pay for this and any future shutdown (so they won't have to keep doing these bills every time there is a shutdown).

This means that the House bill will need to go to the Senate to be amended and/or passed (since there are 2 versions now) and if amended and passed in the Senate, it would need to go back to the House again to amend/vote on... and then back and forth until both chambers pass the identical bill...

The hope is that the Senate will go on and pass the House version and it will be signed into law by the WH but that remains to be seen (due to the scope change of the House bill).

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