Protect your finances from the government shutdown
(MoneyWatch) With both political parties having dug in, the government shutdown is unlikely to end soon.
Of course, the immediate impact of the shutdown means that nonessential agencies and series are shut down. You might not be able to visit the zoo, for example. And many government employees will still need to go to work, though their paychecks will be delayed until the government can write checks again.
- Why is it so difficult to end the government shutdown?
- Poll: Americans not happy about shutdown; more blame GOP
- Maximize rewards offered by your credit cards
If the shutdown drags on for an extended period of time, it might start to have a material impact on your life and finances. John Kiernan, writing at WalletHub, has some specific suggestions for protecting your wallet during this government shutdown.
Maximize your emergency fund. If your income is not directly affected by the shutdown, it might be a good idea to cut back on spending and build a bigger financial safety net. That can come in handy if the government closure causes market volatility or slower growth downstream.
Apply for additional credit now. It can take some time to be approved for additional lines of credit, so you might want to apply now if you think that you might have a cash flow problem later during the shutdown.
Take care of variable rate loans. Some analysts expect credit card rates and other variable rate loans to rise as the shutdown goes on, so it is a good idea to consolidate what you can now. Move loans and debts to fixed rate terms to stabilize your finances.
Start talking to creditors. If you're directly affected by the shutdown -- for example, your family depends in part or in whole on a military salary -- then now is the time to talk to creditors and make them aware of your financial situation. If you address issues early, odds are good that you can work something out.
