Furloughed Employees May Turn to Tax Refunds, Payday Loans to Stay Afloat During Shutdown

While AccountsRecovery.net has written a fair bit about the government shutdown, including which agencies are closed and which are still open, and how furloughed employees can try and work with creditors and debt collectors to not fall too far behind, and even how the Internal Revenue Service will still be mailing out refund checks, those employees are still due to be paid this Friday, and if that doesn’t happen, that might be good news for one industry in particular: payday lenders.

Employees who have been out of work for nearly three weeks with no apparent indication that they will be going back to work anytime soon might be getting to the point where they need something to keep them afloat until the shutdown is over, according to a published report.

Some financial institutions with ties to the federal government, such as Navy Federal Credit Union and the Congressional Federal Credit Union are offering interest free lines of credit, but many employees of the federal government will not be so lucky.

That may force employees who are not able to tap the wallets of friends and families to either look at getting a payday loan or possibly even file their tax returns sooner in order to use their refunds to provide cash to continue managing their expenses.

One thing is for certain, according to one budget expert — everybody is losing as long as the government remains shut down.

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