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Countless men and women give their time and possibly their lives to serve this country and protect our freedom. However, many individuals serving in the military finds themselves overwhelmed with veteran debt. Often, this debt results from the time they served. Fortunately, the Servicemembers Civil Relief Act works to address this common problem. An active-duty servicemember fills out the Relief Act form to receive access to benefits and protections. However, what can be done to help those who have retired from the military and need help?
Factors Contributing to Veteran Debt
Service members find they face unavoidable factors unlike those seen by civilians. For instance, veterans often struggle to find a job when they return from serving in the military. The transition from military to civilian life isn’t as seamless as many believe. The resulting gap in employment can lead to accumulating debt and the need for help from National Debt Relief.
When a person leaves the military, they may be forced to find new living accommodations. Although the military helps with moving costs, the provided amount may not cover the full cost. A veteran might find they need to take out a loan, and this could lead to financial difficulties.
Service members receive certain benefits, such as health insurance and housing assistance. When the veteran transitions to civilian life, they often have bills they weren’t previously responsible for. This can lead to debt, as they have a limited income that often doesn’t cover basic living expenses. A service member may be injured and return home with a permanent disability. Some disabilities are physical, but others are mental and cannot be seen. Either way, the disability could interfere with the individual’s ability to work. This leads to increasing veteran debt, as the individual tries to keep up with the cost of living while dealing with the problem resulting from their service.
Some individuals spend their entire life in the military. When they retire, they struggle to live on a fixed income. As a result, they may accumulate debt or find they must obtain a job to help cover their living expenses.
Recent events have left many individuals unemployed. When a service member moves frequently, their family goes with them. This leads to spouses finding it difficult to hold a consistent job. Military spouse unemployment remains a problem today, especially when the assignment is abroad. Living on one income can lead to mounting debt.
Regardless of what led to the debt, veterans find they have help if they know where to look. The following debt payment options remain open to these individuals.
Veteran Debt Payment Options
Unique circumstances often lead to debt for veterans. Fortunately, help is available. What options should a veteran consider?
Debt reduction plans allow individuals to consolidate their debt so they only make one payment each month. Doing so could reduce the interest the veteran pays while making it easier for them to manage their finances. A veteran might find they qualify for a lower debt-to-income requirement or a longer repayment term. They need to speak to multiple lenders to find the best repayment option for their situation.
Personal loans serve as another option for veterans in need of debt relief. These loans remain open to active service members as well and serve as a solution for credit card debt, auto loans, and more. Private lenders work with veterans to find the option that best meets their needs while providing the relief they desire. They even work with those who have less than perfect credit.
The Military Debt Relief Act
Active-duty military personnel benefit from the Servicemembers Civil Relief Act. Established in 2003, this act outlines the interest rates lenders may charge when working with active duty service personnel. This act applies to a range of financial products, including cell phone service contracts and rental agreements. The government recognized active duty members may experience financial stress as a result of their service and want to alleviate this stress so the soldier can focus on protecting the nation. The act covers active duty military members, including those in the reserves and National Guard, along with their spouses and children.
Additional Financial Options
In addition to the Relief Act, other programs exist for those in the military. This includes the Military Lending Act and the Veteran’s Housing Benefit Program. When speaking with private lenders, share information about your military service to ensure they know which programs to offer. Every debtor’s situation is unique, so what works for one veteran may not be right for another. The more information the lender has, the easier it is to match the program to the person.
Tips to Get Through This Difficult Time
Men and women want relief in the shortest time possible. Veterans often struggle to adjust to civilian life just as they are dealing with financial difficulties. Don’t despair. Special loan and assistance programs become of great help at this time.
The veteran does need to sit down and figure out what led to the debt and how best to avoid it in the future. Establishing a budget taking into account the changing circumstances serves as one way to prevent future problems and getting out of debt with the help of a relief program is another.
Accept that it will take time to get back on track. You didn’t get into debt overnight and won’t get out of it quickly either. A person cannot make the minimum monthly payment and see progress either. Debt repayment solutions can help reduce the time needed to eliminate this debt. Finding the right combination of techniques will allow you to achieve financial freedom and move forward with life.
The right debt relief program provides hope for the future. Seek help if you are unsure of which program is right for your needs. Americans recognize the sacrifices service members make and want to do everything possible to make life easy for these amazing individuals. The previously mentioned programs are available to those who have served so take full advantage of them. You won’t regret doing so when you obtain the relief you desire.
