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re: Serious question about Federal Employees missing paychecks
Posted on 1/18/19 at 10:53 am to BoneDrownedDave
Posted on 1/18/19 at 10:53 am to BoneDrownedDave
How can they get a payday loan when they don't know when payday will be?
I'll leave the politics to the Poli Board, but the financial implications of this to these employees is starting to get out of control.
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
Emergency funds are important. We are learning so many don't have one.
I'll leave the politics to the Poli Board, but the financial implications of this to these employees is starting to get out of control.
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
Emergency funds are important. We are learning so many don't have one.
This post was edited on 1/18/19 at 10:54 am
8
Posted on 1/18/19 at 11:28 am to LSUFanHouston
quote:
Emergency funds are important.
I had this conversation with a guy in my office earlier this week. I wondered just how many people had literally no options in keeping their bills paid. I know that USAA is doing what they can to lend and help bridge the gap, as I'm sure other places are, but the hidden costs of interest, late fees, etc will certainly take their toll.
Its a shitty situation that I'm thankful to not be in. I've always thought that I'm ok with a little short term pain for long term gain (i'm certainly not advocating for or against a wall here, thats another topic for another place) but again thats an easy standpoint to take right now since I'm not the one having to endure the short term pain....
This post was edited on 1/18/19 at 11:30 am
Posted on 1/18/19 at 1:38 pm to LSUFanHouston
quote:
How can they get a payday loan when they don't know when payday will be?
I'll leave the politics to the Poli Board, but the financial implications of this to these employees is starting to get out of control.
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
Emergency funds are important. We are learning so many don't have one.
Loan your buddy some money, man.
Posted on 1/18/19 at 1:48 pm to LSUFanHouston
quote:I've followed your posts on the Money Board long enough to believe your above post is factual.
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
However, I have ZERO sympathy for your friend.
Any person who is healthy and has been in the workforce for a while but who has no savings for a short-term financial cushion completely deserves whatever financial angst he's going through. Especially in today's economy with under 4% unemployment.
Hell, I could walk down the street and have a temporary, part-time job paying me $9/hour before the end of the day today. I pay my yardman $50/hour!
Posted on 1/18/19 at 1:58 pm to LSUFanHouston
quote:
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
I feel for this guy but how in the hell did he max out his CC plus $2000 IRA withdrawal in three weeks?
Posted on 1/18/19 at 2:18 pm to LSUFanHouston
I will say this ... did a little traveling recently (during shutdown) and the TSA workers were fairly friendly and it seemed business as usual (although maybe less of them)
Posted on 1/18/19 at 4:22 pm to LSUFanHouston
quote:
How can they get a payday loan when they don't know when payday will be?
I'll leave the politics to the Poli Board, but the financial implications of this to these employees is starting to get out of control.
Friend of mine is one of the "lucky" employees who still has to work but isn't getting paid. He's overdrawn on checking. The bank calls him 3-4 times a day to remind him to make a payment. He just took a $2,000 distribution from an old IRA he had, and cashed the check, because he doesn't want to put the check in the bank.
He's basically not paying any bills and using cash to pay for gas, groceries, etc. His credit card is just about maxed out.
And in the end, they are going to get all the money back they are owed from payroll. But, what about the tax and penalty he now owes on the IRA withdrawal? Even if he puts the money back into the account, he still owes it.
Emergency funds are important. We are learning so many don't have one.
Heres a stupid question. Why isnt your friend paying his bills? Thats what i want to know..
Posted on 1/21/19 at 6:10 pm to LSUFanHouston
quote:
His credit card is just about maxed out.
How did this happen? I can’t imagine maxing out any of my cards in what, a month? I mean, the interest would suck if this goes on for more than 30-60 days, but you have to figure it gets worked out within the next month. Hell, apply for a zero interest intro offer card and keep yourself up with that until payday gets here. Key is to simply spend at or, preferably, below normal levels. Don’t overdo it and it should be much better than paying penalties on early IRA withdrawal.
Problem here is it sounds like he was already making poor spending decisions before shite hit the fan. And now I’m reading he’s paying for a private college. Geez. Needs to reevaluate.
This post was edited on 1/21/19 at 6:14 pm
Posted on 1/22/19 at 12:06 am to LSUFanHouston
If he can put the $ back in his IRA within 60 days, he won’t have to pay taxes on it.
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