Maryland federal employees share fears — and the financial moves that can help right now

BALTIMORE — Thousands of federal employees in Maryland are scrambling to manage their finances as the government shutdown continues, leaving many without paychecks and uncertainty about when, and if, they'll receive back pay.

"Hopefully, down the road, I will get paid. Like I said, it could be a month. I just make sacrifices," said a Social Security Administration employee who asked to remain anonymous due to concerns about losing his job.

The employee said he received a paycheck last Friday but that could be the last for a while.

"If this continues, yes, it'd be zeros going forward. And then they've also been talking about maybe not giving the back pay. So who knows?" he said.

Jonathan Pearlstein, managing director at Blue Pearl Wealth Management, has several clients impacted by the shutdown. He hopes many already have a financial cushion, but if you don't, start with the basics.

"First, examining all of your expenses and then looking at what's essential and what's not and cutting whatever is not essential," Pearlstein said.

Next, prioritize upcoming bills.

"What do I have to pay? And paying the bare minimum so that you can get through this situation," Pearlstein said.

Focus on your main living expenses but don't default on loans or debt. That starts with a conversation with your lender.

"It could be in the form of asking for a short-term loan. It could be asking to waive the minimum payment or the monthly payment on a card. It may be something with a mortgage, either extending or skipping a month," Pearlstein said.

Before you accept any offer, ask this important question.

"You want to make sure and, ideally, get it in writing that whatever it is you're asking for, or whatever they're giving you will not impact your credit," Pearlstein said.

If you desperately need cash, federal workers may be able to borrow from their Thrift Savings Plan (TSP).

"If you are not going to be terminated, you can borrow from the TSP. It takes a little time and there are costs and there is interest for that, but that is kind of an emergency stopgap," Pearlstein said.

Homeowners could also tap a home equity line of credit.

The state is offering a $700 no-interest loan if the shutdown lasts past October 15th, and furloughed workers qualify for unemployment insurance. But Pearlstein warns there's a catch.

"If you are paid back retroactively for that time, which is obviously everyone's hope that's not getting paid right now, you would be required to pay back that unemployment," Pearlstein said.

Don't wait for an overpayment notice – be proactive in repaying it.

Pearlstein said this period of uncertainty is also a wake-up call.

"There is a cost to that financial instability, and there's a mental and peace of mind cost to not being able to pay your bills, the stress that it takes, and the impact on people's lives. So, if this is uncomfortable for you, you've got to make changes," Pearlstein said.

For some bills there may not be many options, which is why it's so important to communicate early and clearly.

Maryland's governor created a resource page for individuals impacted by the shutdown. Local credit unions are also offering low-interest loans. Wells Fargo and Bank of America have issued statements on what they're doing to support their customers, and the American Bankers Association has detailed how banks are responding to the shutdown.

Wells Fargo statement:

Bank of America statement:

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