Many veterans and active-duty military personnel face unique circumstances when it comes to their day job. Not only are they exposed to dangers on a day-to-day basis, but a lot of stress and anxiety comes with that. However, as part of a society, veterans are not exempt from financial burdens and distress either, which is so unfortunate. That said, what are some debt relief options out there for veterans?
In this article, we’ll go over certain programs and debt relief options that veterans have at their disposal.
1. Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act was established around 1940. This law effectively bans creditors from foreclosing on your home, evicting, garnishing, and repossessing any of your property until 60 days after a service member returns from active duty. This protects you against certain creditors I’m taking away your possessions while you are deployed.
Once you’re back home from active deployment, this act will protect you from 60 days upon your return. This gives you some time to get your finances in order. This might mean refinancing your debts, selling some items oh, and repaying outstanding loans. This will help you prevent repossessions and evictions.
2. Free Credit Counseling for the Military and Veterans
There are many services out there that offer free credit counseling for military members and veterans. The trick here is to only work with legitimate nonprofit counseling organizations. These nonprofit organizations are typically audited and work under strict guidelines, making them a solid choice.
To find them, simply look up registered counseling agencies near you. You should also look out for scammers that promise to solve your credit issues, only to rob you blind. If a credit counseling agency asks you for payment, hang up and move on.
3. VA Home Loans for Veterans
One of the biggest and most popular benefits of being a veteran is getting access to VA home loans. These loans have rates that are typically lower than conventional loans. They also have no down payment requirements, no p.m. I, and rock bottom rates.
If you are currently on a conventional mortgage, then switching to a VA loan is Paramount. You can end up saving thousands in monthly payments and interest. The requirements in guidelines for this might vary, so do your homework within your state.
4. VA Personal Loans for Veterans
There are lenders that offer insecure loans up to $40,000 to veterans, even those with low credit scores. If you’re in a situation where you have a payday loan or high-interest credit cards, getting a VA Personal Loan to pay those off is a huge financial relief.
On this blog, I will rarely advocate getting loans, but if a low-interest loan will get you out of a payday loan or something like that, then this is a fantastic option for you.
Interest rates range anywhere from 4% to 37%, so make sure you compare your options with different lenders and get the lowest rate possible.
5. Military Debt Consolidation Loan
If you currently have an existing VA home loan, then you are eligible for a Military Debt Consolidation Loan. This loan gives you access to your home equity that you can borrow against. The funds borrowed from your home equity can be used to pay off other high-interest debts that you might have.
Since this is a VA program, the loan is partially guaranteed by the VA and as such will give you access to better loan terms, interest, and payback periods than conventional HELOC loans.
6. Homeowners Assistance Program
Active service members, veterans, surviving spouses, and civilians working in the Department of defense are covered by the homeowner’s assistance program. This program provides financial assistance to those that are facing foreclosure and having to sell their home at a loss. Since homeownership is a huge source of family net worth, selling a home at a loss is a huge financial blow.
This program was created by the Department of Defense to help those in these exact situations.
Final thoughts
As a veteran, Financial burdens and debt are just as real as any other civilian. Since circumstances can be quite different as a veteran, it is great to know that they are options out there that cater specifically to this group.
If you are a veteran or know a veteran that is in financial distress and needs assistance, these options are a good starting point. Of course, that is something that can’t magically disappear. It’s important to always prevent getting to that point with financial education.
Hope this list is helpful and helps to find some debt relief for veterans.
