Many veterans and service members face another daunting battle: debt. Debt comes in various forms, including student loans, credit cards, auto loans, and medical bills.
According to the Pew Research Center, 35%, or a third, of veterans had difficulty repaying debt during their first few years after active duty service, primarily because they had lost a steady paycheck.
Military veteran Gabriel Grant said that when he left military service, he returned to work and met his wife. He and his wife began building a house and started a family. The couple exceeded their budget, and Grant faced $25,000 in debt. He struggled to keep up with payments; unfortunately, he’s not alone in this struggle.
Many veterans and service members struggle with debt. According to Mandi Moynahan of the USAA Educational Foundation, military members face unique challenges, including deployments and frequent movement, and these movements may leave gaps in their household income.
That’s why USAAEF and non-profit credit counseling agency Money Management International have partnered to help the military community get out of debt. USAAEF offers a self-help program called Debt Destroyer to counsel them out of debt. And the best is it’s FREE.
Moynahan explained that military members can utilize the 6-step approach to solve their debt problems. They have a video series and calculator to help them strategize out of debt.
Thomas Nietzche of Money Management International states that military members with debt challenges can contact MMI experts. These experts can work with creditors directly or give them advice based on their unique circumstances.
Grants shared that MMI has helped him keep track of and maintain management debt repayment plans. Every time he made extra money, he immediately allocated it to his outstanding debt. He paid off this $25,000 debt in three years and finished the house he built.
Aside from getting counsel from USAAEF and Money Management International, active duty service members can activate their SCRA rights to manage debt. The SCRA lowers the interest rate for pre-active duty debt to 6%, and some lenders even lower this to 4%.
Determining one’s active duty military status is vital to activating SCRA rights, and SCRACVS can help lenders and service members obtain proof of one’s active duty status. Click here to sign up at SCRAVS and verify the active duty status.