In the event that federal payments are interrupted because Congress fails to increase the federal debt ceiling, USAA has announced that it will offer interest-free loans to cover the amount of military pay, military retirement pay, Department of Veterans Affairs (VA) benefits, and Social Security Administration benefits.
As you would expect from an offer like this, there are a number of terms and qualifications that apply:
- You must have an existing direct deposit relationship with USAA, with at least two consecutive direct deposits in the last two months.
- The loan amount would be based upon two weeks of a normal direct deposit.
- The maximum loan amount available will be $6,000.
- You must be in good standing with USAA.
- Any loaned amount will be automatically debited at the next completed direct deposit.
If a disruption in pay seems likely as the debt ceiling deadline approaches, USAA will send information regarding this loan program via email. Any account holder, or those with power-of-attorney for an account holder, may accept the loan offer.
There are many USAA members who receive federal payments but are not eligible for this specific payroll loan program. Those members should reach out to USAA to explore a wide range of other solutions, including special payment arrangements.
“USAA is dedicated to providing our members with the financial solutions and advice they need in situations like this,” says Matthew Bomersbach, senior vice president and head of credit at USAA Bank.
To find solutions to meet your needs or for more information about this offer, call 800-531-USAA (8722).
While most experts don’t anticipate that our country will reach this disastrous point, anything can happen. I’m thankful that USAA is planning to support its members with such a great offer. However, I do worry just a little that families rely upon these types of extraordinary offers and forget that they need to have their own emergency funds for situations just like this. Don’t be complacent – have a plan for a financial emergency.