Banks Offering Emergency Plans for Debt Ceiling Crisis

More banks are announcing plans to help in the event that the federal government debt ceiling crisis results in non-payment of pay for service members and other Department of Defense employees.

Navy Federal Credit Union announced today that they will advance pay to cover the 5 August 2011 DoD civilian paychecks, and the 12 August 2911 active duty military paychecks if pay is delayed due to the debt situation. They are still assessing the situation for other federal payments, so keep your eyes open for more news on that subject.  “Liking” their Facebook page will give you easy access to the most up-to-date information.

Pacific Marine Credit Union is guaranteeing the direct deposit of funds for their members.  They also are still figuring out what to do for other federal beneficiaries.

First Command Bank announced their government shutdown contingency plan and it addresses numerous aspects of the situation.  Military and federal employees would be automatically advanced the first missed pay during a non-payment, and there will be special procedures for credit card account business.

USAA is also offering a variety of ways for it’s members to manage their finances during a possible federal financial mess.  Different accommodations are available to different groups – check out the list for more information.  They’ve also put together a FAQ  that answers most of our questions so far.

Andrews Federal Credit Union has announced that it will advance pay if deposits are not received for the August 2011 mid-month pay.  They will also be offering a 30 day, interest-free loan to other members who receive federal payments.

If you know of more banks who are offering special schemes, please let me and the other readers know in the comments.

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.
  • Krista

    I see on USAA’s page that they list this pay advance as a loan, two questions. First is there any interest on this “loan”. Second is this program something that you have to opt in to participate?

  • KateKashman

    These are great questions, Krista. I’ve checked with my USAA contacts and confirmed that the loan is interest free. You will need to “apply” or ask for the advance by calling USAA.

  • MEE

    http://www.msnbc.msn.com/id/43954150/ns/politics-

    Andrews Federal Credit Union