Federal Budget Passes; Fewer Troops Need Military Payday Advance

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Congress has gotten its act together and approved the federal spending budget for fiscal year 2011. Military service members and other federal employees would not have been paid during a shutdown, which would have sent more than a few into debt or seeking assistance from pay day loans or other means. The next quibble in government waits, though the federal shutdown was thankfully avoided.

Shutdown could have crippled families of deployed personnel

There was a lot of stress in the last few weeks with the possibility of a government shutdown while Congress upheld a budget for Fiscal Year 2011. Congress would have been paid nevertheless while many other government employees would have lost payment if there was a shutdown, which did not happen. Even without payment, some would have had to keep working. This would have been mandatory for them. Members of the military, for instance, would not be paid for their work during a shutdown. Federal regulations prohibit service personnel from getting pay day loans or comparable subprime credit goods, and most service personnel, according to MSNBC, make close to the average wage in The United States, it would have been a devastating blow to military families.

Getting paid to be in the military

Nearly three of every four individuals in the armed services are in the six lowest ranks and are paid $31,000 a year or less. Mean earnings in the United States was estimated at $44,901 while median earnings were at $36,587, according to the Bureau of Labor Statistics. Military personal are making less than the average person no matter which scale you take. There was a Department of Defense survey done in 2008. It said that families in the military tend to have debt troubles, reports the Washington Post. There was also a Government Accountability Office study done that showed 1.2 percent of military personnel on active duty end up bankrupt showing bankruptcy are also quite common. Federal court statistics indicates that more than 1.5 million individuals filed for bankruptcy last year, which is 0.5 percent of the United States population.

The reward for serving the country

The reward for those who defend the country is not very high. If service members get too much debt, they can lose their security clearance making it harder for them. With a shutdown happening, there would have been other options. Luckily, the individuals do not have to worry about this. The Naval Federal Member Bank offered low interest unsecured loans to members in case of a shutdown, like other credit unions and banks for federal employees have done in previous shutdowns.

Articles cited



Washington Post


Bureau of Labor Statistics


U.S. Courts


Government Accountability Office


Government Accountability Office


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