Military Debt Consolidation Advice

About Military Debt Consolidation

Military debt consolidation programs offer an effective financial tool for service members who are struggling with making monthly payments to creditors, managing household finances and meeting their goals of financial freedom. Debt consolidation for military members helps to provide assistance to those who serve, to help them avoid bankruptcy and sometimes shady consolidation loans, while working towards becoming debt-free and establishing a solid foundation for building a strong financial future for their families.

While there are plenty of debt relief programs around, military personnel can gain particular benefits by joining up to a program designed specifically for them. These benefits can include:

• Free financial counselling
• Lower interest rates on the loan
• Other benefits such as lower late payment charges

By participating in a military debt consolidation loans program, you can work to improve your credit rating, lower or eliminate interest fees, avoid charges for late payments, stop collection agencies from calling and sending harassing letters, arrange for one manageable monthly payment, receive free budget planning assistance and credit counseling, and regain your financial footing by taking control of your debt and establishing an affordable repayment plan that works with your household budget. Punitive interest rates on things like credit cards or personal loans can be significantly reduced, even halved depending on type of debt. It is possible to dind a debt consolidation loan at under 10% in fact, offering obvious savings over credit cards.

Professionally trained debt mediators will work with your creditors to lower or eliminate interest fees and to arrange the best repayment terms available for your situation. This will allow you to save money each month and will provide a light at the end of the tunnel for those who are facing a mountain of debt that may seem insurmountable. Your credit cards and unsecured loans can all be consolidated with the use of an easy, convenient military debt consolidation program, which will alleviate the stress of worrying about making several individual payments each month, having to make late payments, or missing payments entirely due to limited finances.

If you are having trouble keeping up with your current monthly payments to creditors, making late payments or missing payments completely due to lack of funds, or working hard to pay your creditors each month, but not seeing adequate progress as you work to pay down your debts, then you are likely a candidate for military debt consolidation. Most organizations providing military debt consolidation services offer a simple, convenient online application form, which requires basic information regarding your unsecured debts, such as credit cards, medical bills, accounts that have gone to collections, student loans, unsecured personal loans and judgments against you.

If you have fallen behind on payments or have accounts that have been sent to collections, military credit card debt consolidation can help you begin to repair your credit and to build a positive credit history of on-time monthly payments. Additionally, military debt consolidation programs take into consideration your monthly income and expenses to help you determine the amount you can afford to pay to your creditors each month, while still having enough money to support your family. Arranging for a single, affordable monthly payment also allows you to establish a monthly budget tailored to meeting your goals of getting out of debt and having the money to provide for your family and enjoy your time together.

If you feel overwhelmed by the debt you have incurred and are looking for a convenient way to repay your creditors, maintain or improve your credit rating, and work towards a stable, debt-free financial future, military debt consolidation may be the right choice for you.

The Military Debt Relief Act In A Nutshell

The Servicemembers Civil Relief Act (SCRA) protects those entering or already deployed in the military by relaxing certain civil obligations. These include outstanding credit card debt, mortgage payments, pending trials and taxes. The purpose of this military debt relief act is to relieve servicemembers and their families from the stress that often goes hand in hand with these situations, and allow the individual to focus their full attention on their military duty.

SCRA expands upon previous legislation–the Soldiers and Sailors’ Civil Relief Act (SSCRA)–by improving and updating the protection of servicemembers in many key areas. For example, SCRA increases the scope of the law protecting servicemembers and their families from eviction while they are on active duty. Nonpayment of rent up to $2,932.31 per month are covered; significantly more than the previous £1,200 per month and bringing the legislation in line with the cost of living of the present day. SCRA also prevents “double taxation” i.e. the taxation of a servicemember’s spouse if they work in a state other than the state in which their permanent legal residence is. The Act allows active servicemembers to end a house lease if they have been relocated (temporarily or permanently) to a new location, and to end an automobile lease, provided they meet certain conditions.

In terms of civil lawsuits, servicemembers can request a stay for any lawsuit against them if they are unable to appear in court due to being on active duty. This does not, however, apply to criminal law suits. SCRA applies to all servicemembers who are all on active duty, including reservists and members of the National Guard. They are protected from the day they enter active duty; the protection ends between 30 and 90 days after they are discharged from active duty.

The expansion of the SSCRA through this new legislation has been welcomed by servicemembers. These individuals have greater concerns than their credit rating and household bills when they are on active duty for their country. For their families, it is a relief to not have the worry of debt problems while their loved ones are serving in the military. Contact your local Armed Forces Legal Assistance Program office to find out more about SCRA; if your spouse is on active duty, you can contact them on their behalf. They will be able to talk you through the necessary steps in order to put the protective measures in place.