Military Debt Consolidation Loan
Five Debt Relief Programs for Military Personnel
When it comes to serving their country, military members have a lot on their minds.
The good news is that they are protected by the law from many civil credit issues.
Unfortunately, many service personnel is still in financial distress, and finding veteran debt relief choices is tough.
These five programs can assist veterans and active-duty service members with debt relief.
- Interest rates on credit cards and auto loans for active-duty military people are regulated under the Servicemembers Civil Relief Act.
- Military Lending Act – Servicemembers cannot be charged more than 36 percent interest on credit products.
- Veterans can get low-interest loans under the Veteran’s Housing Benefit Program.
- Nonprofit Credit Counseling – Nonprofit organizations such as Consolidationnow offer free financial counseling.
- Debt Consolidation – This category includes a few choices, any of which could give the greatest debt-relief solution for your situation.
If you are an army soldier in Afghanistan or a citizen living in Denver, you can apply for financial aid from the military.
Optional Loans for Military and Veteran Debt Consolidation
Compare your bill interest rates (including credit card debt) to the interest rates connected with a consolidation loan.
You consolidate debt when you consolidate debt. This is based on your credit history, and you may be able to secure a loan with an interest rate of 8% -10% to pay off credit card bills that have likely reached 25-30%.
Personal loans (home equity loans), balance transfer loans (balance loans), and house loans are the three forms of debt consolidation loans accessible (personal loan).
Each type has its own set of advantages and disadvantages.
Personal debt consolidation is the most popular type of debt relief.
The most common type of debt consolidation is this. You go to a bank or credit union to figure out how much money you’ll need to pay off your credit card debt. They will also check your credit history and payments before approving or rejecting your loan request.
Borrowing for personal loans was $305 billion in 2019, up 121 percent from the previous year. This is the most profitable field for online lenders.
Taking out a home equity loan
The interest rate on this loan is the lowest because you are using your home as security. You may lose your home if you do not make your payments. Credit card interest rates are as low as 6%, compared to a national average of 17%.
Transfer balances between cards
You pay no interest for a set amount of time (typically 6-18 months). This enables you to pay off your credit card balance in full. It is tough to obtain a 0% credit card for those in financial distress.
To qualify for one, you must pay off all of your debts within the specified time period. If you do not settle your obligations within the time limit, your interest rate will escalate to 18%-20%.
Friends and family
If both parties are trustworthy and reliable, this could be ideal for getting the lowest interest rates and the longest repayment terms.
And, if they don’t trust each other, it can lead to strained relationships and even deadly circumstances. If none of these solutions appeal to you, a non-profit credit counseling agency can help you consolidate your debt. Credit counselors can assist you in developing a budget and making recommendations for debt reduction.
One of these is a debt management program. A debt management program is one of them. Civilians are subjected to greater standards than service personnel in terms of security and debt. If their financial duties are not satisfied, they risk losing their security clearances and promotions, as well as facing court-martial.
This is one of the reasons why there are so many payday lenders around military bases.
They’ll instead offer quick remedies like a payday loan or an auto title loan.
The typical interest rate on these loans is 400 percent, but it can reach 1,000 percent. Take a deep breath and fight the urge to give in. After that, you can look at additional debt relief solutions.
Civil Relief for Servicemembers Act
It has been in existence since 1940. The Soldiers’ and Sailors’ Civil Relief Act was the original name. Its origins can be traced back to the American Civil War.
Soldiers who were unable to pay their military debts were granted assistance by Congress. During the Civil War, Union privates earned $13 per month, $2 more than their Confederate counterparts. It wasn’t much, but it was enough to keep collection agencies away from them.
Until the 60-day period following the return of active duty military members, creditors are banned from pursuing foreclosures, garnishments, repossessions, or other actions by creditors.
Lenders must cap interest rates for military members called up to active duty at 6%. Approximately 10% of families are debt $20,000 or more. More than half of junior officers and enlisted soldiers stated they only pay the minimal amount on their credit cards.
Program to Assist Homeowners (HAP).
The military is awash in homeownership, with military millennials accounting for 51% of the total. It is conceivable, though, to have difficulty paying your payments.
This was acknowledged by the Department of Defense, which developed the Homeowner Help Program (HAP), which provides financial assistance to qualifying applicants who are facing a housing crisis.
Active service personnel, veterans, spouses, and civilians working in the Department of Defense can benefit from HAP.
Armed Forces soldiers who experience a wound, injury, or illness while on duty (30 percent or greater disability) during deployment are eligible for assistance.
Applicants who meet the criterion in one of the following three conditions are eligible for financial assistance:
The difference between the home’s fair market value (formerly 95 percent) and the sale price is the benefit amount.
HAP can pay applicants for sellers’ usual and customary closing costs.
The benefit amount is equivalent to 90% of the property’s market value or the amount paid by the mortgage (s).
For legally binding liabilities, the lienholder is entitled to advantages.
Military Lending Act of 2006
Predatory lending was outlawed under the Military Lending Act of 2006. The Veterans Administration can help you get more help. Unless there are tax liens or collections, VA home loans normally look at the last 12 months of credit history.
To receive a loan for military service personnel, refinance your home through the VA.
The Interest Reduction Refinancing program can help qualified veterans achieve a cheaper interest rate or switch from a variable to a fixed-rate loan.
You can use the Cash-Out Refinance loans Programs to replace your current loan with a new one if you have cash in your home equity. If you don’t pay your bills, your home may be taken as collateral.
Veterans and military personnel are eligible for free credit counseling.
Debt may be able to provide free credit counseling to veterans and service personnel. This strategy can assist you in paying off your debt in three to five years.
Instead of managing a slew of invoices, debt consolidation, or a Debt Management Plan allows you to make only one check per month.
There are better options than payday loans, and they don’t have to be found outside of military bases. A military member doesn’t need to have bad credit.
Military Debt Consolidation
You might be a good fit for InCharge’s military debt consolidation program.
Consolidationnow Relief Programs for Military Personnel
Consolidationnow provides these resources to recognize military service and show gratitude for the sacrifices made by military families:
- Articles about Military Money. Military Money articles are proudly published on Consolidationnow.
- For service members and veterans, eBooks are available.
- Military Money Minutes is a daily tip-oriented program broadcast on Armed Forces Radio.
Grants for active duty and retired military personnel
The VA has many grant programs that can help veterans and their families. These include locating a permanent residence, accessing cultural community activities, hiring legal counsel, and financial assistance for college degrees.
The money is often given to local religious and civic organizations that distribute it to active military personnel and veterans. These websites provide a list with a complete list of grants available for veterans and military personnel.
- Grants.gov — This website is part of Veteran Administration and provides information about grants and places to apply for grants.
- GrantWatch.com — Grants for faith-based and nonprofit organizations and 501(c),(3)s assist veterans in everything, from finding a place to live to train to get a job, finding a house, and getting technical support for their needs.
- Finaid.org is a website that provides grants for veterans and their dependents.
- USVeteransMagazine.com is a website dedicated to veterans in the United States. This site, like Finaid, provides a complete list of places where veterans, spouses, and dependents may search for funding.
- MilitaryBenefits.com – This page focuses on ten benefits veterans might not know about, including long-term care and certification programs.
There are many options for debt relief from the Veterans Administration
The VA has many options available to veterans who are in financial difficulty depending on the severity of their problem.
The Loan Guaranty Service might work with banks and mortgage companies to ask for forbearance or work out a fair payment schedule for Veterans having trouble paying their mortgages to ensure they don’t lose their homes to foreclosure.
You can call the VA Loan Guaranty Office between 8 a.m. ET and 6 p.m. EDT if you are a borrower.
Would you please visit the Trouble Making Payments page if you have difficulty paying your VA home loan payments due to financial hardships or other conditions?
Beneficiaries of the following institutions are eligible for free financial planning and online will-preparation services:
- SGLI (Servicemembers’ Group Life Insurance) is a type of life insurance that serves servicemembers.
- TSGLI TSGLI TSGLI TSGLI TSGLI TSGLI T(Traumatic Injury Protection).
- FSGLI (Family Soldiers’ Group Life Insurance) is a type of life insurance used by military families.
- VGLI (Veterans’ Group Life Insurance) can be a type of life insurance for veterans.
Only SGLI, VGLI, and FSGLI beneficiaries and Servicemembers with TSGLI benefits are eligible for online financial counseling. If you’re interested in financial advice but haven’t received a TSGLI check, contact your Command Financial Specialists and Financial Readiness Counselor.
Veterans who are not eligible for the benefits outlined above and cannot use the VA’s financial counseling service free of charge may be able to get financial counseling at no cost or with a variety of charities, such as:
- Credit unions have extension offices
- Religious institutions
- Non-profit organizations
Veteran’s credit counseling services must be accredited by either one or both of these organizations:
- Financial Counseling Association of America (FCAA)
- National Foundation for Credit Counseling, (NFCC), (FCAA)
VSOs and MSOs offer planning and financial training for veterans. For up to one year, the USO’s Pathfinder Program offers financial literacy materials for transitioning Servicemembers, their families, and their families.
Supportive Services for Veteran Families (SSVF), a grant program that provides grants to non-profit organizations that help homeless and at-risk Veteran families, is available. The SSVF grants a range of support services to eligible Veteran families to ensure their stability at home.
Additional Military Family Resources available on the Internet
The Department of Defense and Military Services provides military debt relief through a network of financial literacy and ready-made tools. This includes one-on-one counseling. It can be difficult to find these programs online. That is why we are here.
Would you mind visiting https://finred.usalearning.gov/ for additional information on financial readiness resources, education, and support?
- Military OneSource — This service is provided by the Department of Defense to all active, Guard, Reserve, and retired personnel, regardless of activation status, at no cost. This program connects service members to NFCC Member Agency such as InCharge Debt Solutions and provides up to 12 counseling sessions per household.
- Explore VA Health Care Benefits- Explore VA allows you to quickly learn about VA benefits and find out if they are available. You can also share this information with your friends and then apply for them.
- Military INSTALLATIONS- This is the official source of information for the Department of Defense regarding state and installation resources for active, reserve, and guard military personnel and their families.
- USA.gov’s Military Members and Veterans Page provides resources and official information to active duty military personnel. It includes history, family support and benefits, career assistance, education, and many other details.
- Consumer Financial Protection Bureau, Servicemembers Homepage — This government website provides pages about Planning Your Future, Protecting Your Finances, and many other topics.
- Website of the United States Department of Veterans Affairs. The Department of Veterans Affairs offers detailed information about health care benefits and life insurance. It also provides information on home loans, pensions, survivor benefits, education, and other benefits.
- Military.com — This excellent resource outlines the many benefits available to active duty soldiers, reserve members, National Guard members, and retirees, as well as their families in plain English.
Armed forces personnel, especially those trying to manage a budget for the first time, can be under great financial stress. There are many resources available to assist you in this difficult time, including non-profit credit counseling and government agencies.
Consolidationnow offers free counseling to service members who have realized they’ve gone too far financially. You can also research online to find out what other options you have to help you get rid of your debt.