As the sequestration budget cuts enter their third week, it still remains to be seen how wide of an impact they will have on federal employees, their spending habits and whether they'll put off taking on any new debt.
The $1 billion Hanscom Federal Credit Union in Hanscom Air Force Base in Massachusetts began offering its Life Line loan on March 1, the day the sequester cuts kicked in. Members have access to a 0% annual percentage rate interest line of credit for 30 days, equal to one month's net payroll up to $5,000. The loan is attached to a credit union member's checking account to provide additional funds to cover checks, ATM withdrawals and debit card purchases.
At press time, none of the credit union's more than 48,000 members have had to take out the loan, said Tom Becker, senior vice president of lending at Hanscom FCU.
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