WASHINGTON — The paychecks of furloughed federal workers could be on hold, but they’ll still have to pay their bills.
As a result, some people may have to prioritize which bills to pay. Clark Howard, a consumer expert, recommends paying mortgage and car loans first.
“If you think of it logically, you have to keep the roof over your head and you need a car to get around the D.C. Metro area,” Howard says.
Folks can also call their insurance companies and ask to adjust their payment schedule. For example, Howard says, with a six-month auto policy, “They will allow you almost always to convert to a monthly in return for a slightly higher premium.”
Credit unions geared to federal employees are also very flexible and may offer advice or alternative payment schedules to cash-strapped furloughed feds.
Howard recommends doing everything possible to avoid making payments more than 30 days late.
Many mortgage companies will allow payments to be made as late as the 14th of the month without imposing a late fee and without flagging a homeowner’s credit report, Howard says.
Late car payments can be more problematic. Lenders will come after you for a late payment and may mark your credit, Howard says.
If possible, Howard also recommends making at least minimum payments to credit card companies.
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