re: Serious question about Federal Employees missing paychecks

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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.

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