Where to get loans in South MS, financial pitfalls to avoid during shutdown
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- Financial institutions are offering assistance to federal workers without paychecks.
- Keesler’s relief program advances member pay up to 90 days with repayment from back pay.
- Advisors urge early bank contact, monitoring accounts and avoiding high-interest debt.
Federal employees going without paychecks as the government shutdown enters its second month are searching for options to pay their bills.
Mississippi has 26,600 federal civilian employees, with 10,200 in Harrison, Hancock, Jackson and Stone counties, according to the Bureau of Labor Statistics.
Many financial institutions are offering low-interest loans or other ways federal employees can ease their financial burdens. Keesler Federal Credit Union has even rolled out a paycheck advance program. Federal employees also are being warned to avoid financial pitfalls such as payday loans with high interest rates.
“The government shutdown has created stress and financial instability for thousands of our members, so we wanted to stand up for our members in a way that will give them peace of mind,” Keesler board president James Hollingsworth said in a news release.
Credit union offers paycheck advances
Keesler’s Paycheck Relief Program does not charge members a fee or interest for paycheck advances. The program is open to Keesler members who have had direct deposit for three pay cycles and are federal employees in good standing.
The credit union is advancing pay for up to 90 days. Repayment would be from back pay employees receive on their return to work. The program is also available to members of Jefferson Financial Federal Credit Union, which Keesler is buying.
A Keesler spokesman said Monday that 1,709 members are so far participating in the program with a total of $4.3 million in paycheck advances so far.
Banks are offering a variety of options, including fee waivers, loan modifications, payment deadline extensions, payroll advances and low- or no-interest loans
The American Bankers Association lists on its website some of the options available from financial institutions.
The Veterans of Foreign Wars also is listing financial assistance and relief programs for federal workers.
At Hancock Whitney Bank, loans of up to $6,000 are available to cover essential expenses.
R. Paul Maxwell, Hancock Whitney’s vice president and senior communications officer, said in an email, “ . . . We encourage people to visit or contact their local financial center to discuss how the shutdown is affecting them and work with a banker to tailor the solution best suited to their situation.”
Tips for federal workers without pay
Hancock Whitney also offered financial tips for those going without checks:
- Communicate early with your bank to discuss options if you anticipate financial challenges.
- Monitor your accounts closely to keep an eye on balances and upcoming automatic payments or missed payments.
- Advise creditors late or missed payments are anticipated and ask if any options are being offered because of the shutdown.
- Avoid any new, high-interest debt or unnecessary expenses.
- Scammers are taking advantage of the shutdown, the Better Business Bureau reports, so don’t share personal or financial information with unsolicited callers or emailers.
