Credit unions: a safety net when Americans face financial hardship

When paychecks are suddenly put on hold, like during a government shutdown, families are left scrambling to cover everyday expenses. The stress isn’t just about dollars and cents. It’s about making sure children are fed, rent is paid, and health isn’t put at risk. In moments like these, credit unions, driven by their mission of people helping people, often look for opportunities to step in with compassion, flexibility, and solutions that remind members they aren’t facing hardship alone. 
 

Credit unions step in with compassion, flexibility, and solutions

At midnight on October 1, the federal government officially shut down after Congress was unable to come to an agreement on funding legislation. With more than 2 million civilians employed by the federal government and thousands of members affected by a shutdown, credit unions are showing their commitment, however they can, to help ease these financial difficulties. 

At Members 1st Federal Credit Union, this commitment runs deep. President & CEO Michael Wilson says preparing to support members through a crisis is not an afterthought; it is core to who they are.

“A shutdown can cause an immediate disruption in income for individuals and families connected to the federal government, which can create a lot of stress very quickly,” Wilson explained. “We are here to help our impacted members who may need relief right away, and that is why we have prepared programs in advance, so we are ready to step in and provide the support they need.”
 

Relief with flexibility

That support often comes in many forms. Erin Hermany, SVP of consumer lending operations, emphasized that Members 1st builds flexibility into its programs because no two members’ situations are the same.

“For some, skipping a loan payment will provide quick relief. Others may need a personal loan with deferred payments to cover essentials until their paycheck resumes,” Hermany said. “And for many, the free one-on-one financial counseling through our partner GreenPath is incredibly valuable. What we are prioritizing most is giving members options and helping them figure out the right solution for them.”

Members 1st is using lessons learned from past hardships to ensure they can act quickly. Hermany points to the 2019 government shutdown, which lasted 35 days and left nearly half of federal workers behind on bills. According to Axios, in 2019:

• 27% missed a mortgage or rent payment
• 62% had depleted most or all of their emergency savings
• 42% took on new debt, such as credit cards or loans, to cover expenses
• 25% needed to go to a food bank for help

That experience enabled Members 1st to lay the groundwork to roll out relief programs immediately. Hermany explained, “This preparation has helped ease the burden on our members by giving them options and reassurance that they will not be facing these challenges alone.”
 

The credit union difference

Wilson notes that credit unions are uniquely positioned to offer this kind of support compared to other financial institutions.

“Because our mission is centered on serving people, our federal tax exemption allows us to reinvest more directly into our members through programs, loans, and favorable rates that ease financial burdens when hardship strikes,” Wilson said. “We are not looking at the bottom line; we are looking at how to support our member-owners. Our cooperative model, paired with this unique structure, positions us to step in with meaningful, people-first solutions.”

For Wilson, that philosophy ties directly back to the heart of the credit union movement, people helping people.

“For us, that means stepping in when unexpected events, like a shutdown, threaten our members’ financial security. Offering relief, flexibility, and guidance goes hand in hand with our mission to serve and support the people who trust us with their livelihoods.”
 

A simple and powerful message

Ultimately, Members 1st wants to send a message of reassurance and partnership.
“I hope [our members] know we are more than just their financial institution; we are their partner,” Wilson emphasized. “We want them to feel supported, cared for, and confident in times of hardship. Our message is simple: you do not have to go through this alone.”

At Members 1st, the people-first approach provides stability for families and communities, proving why credit unions are a vital partner that consumers and policymakers can count on in times of need. Wilson and Hermany remind us that financial hardship is never just about money. It’s about people, families, and communities holding on during uncertain times.

America’s Credit Unions has a Government Shutdown Assistance webpage with resources and will continue to engage with Congress on getting funding restored.