Military veterans face many obstacles when transitioning back to civilian life, one of which is a significant amount of debt. Many veterans take out loans and credit cards to cover expenses during their transition period. Unfortunately, this can lead to financial hardship for many veterans, particularly those with difficulty finding employment.
Many special programs are designed to help military veterans reduce or even eliminate their debt. For those who have served our country, such relief is greatly appreciated. Unfortunately, not many are aware of military veterans and debt relief options available to them. This article will provide an overview of debt relief options available to military veterans, active-duty service members, or military family members with financial hardships.
Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act is a powerful tool in providing military veterans with much-needed debt relief. It allows servicemembers to have the interest rates reduced on most debts, including mortgages and credit card debt, while on active duty, making it easier to cope with the financial burden of service during deployments. The SCRA also grants extended protections to veterans struggling with debt issues like evictions and legal actions for nonpayment of debts accrued before entering military duty.
Disabled Veteran Debt Relief Grants
Disabled grants for veterans to pay off debt are available through the Department of Veterans Affairs. These grants primarily cover expenses related to home modifications and durable medical equipment due to service-connected disabilities. These disabilities may include physical impairments, mental health issues, and other disabilities that limit the veteran’s ability to earn a living. These debt relief grants for veterans allow them to become more independent and help cover unexpected medical costs that would otherwise become a financial burden.
VA Home Loan Refinancing
For veterans with existing home loans, VA loan refinancing is another option for debt relief. Through this program, veterans can refinance their existing home loans to lower monthly payments and interest rates and have some of their money go toward paying down their debt. With a VA loan, veterans can also get rid of their private mortgage insurance, allowing them to reduce their monthly payments even further. This is an excellent way for veterans to free up cash flow and pay off debts more quickly.
Military Debt Consolidation Loans
Another option available to military veterans is debt consolidation loans. These types of loans are designed to help reduce the debt burden by combining multiple high-interest debts into a single, lower-interest-rate loan. This can be particularly helpful for veterans who have trouble managing their finances and struggle with paying several bills each month. These loans also offer the added benefit of reducing the paperwork and stress associated with managing multiple debts.
Credit Counseling Services for Veterans
If you’re having trouble managing your debts, seek credit counseling services tailored to veterans. Many reputable organizations provide free credit counseling services so former members of the armed forces can learn how to manage their finances better and develop strategies for getting out from under their debt burden. These services can be extremely helpful if you don’t know where to start when it comes to managing your debts and developing a budget that works for you.
Military Repayment Plans and Forgiveness Programs
Finally, military repayment plans and forgiveness programs are available for veterans who have accrued debt related to their service. These programs cover a variety of debts, including student loan debt incurred while in the military and other debts related to service-connected disabilities. Many of these programs offer reduced payments or even full forgiveness of certain types of debt.
Don’t Let Debt Stress You Out
Debt can be a stressful burden, especially for veterans who have served their country and are now struggling financially. Military veterans and debt relief are inextricably linked, and luckily, there are several options available for veterans to help manage their debts and regain control of their finances. With the right resources, knowledge, and strategies, veterans can find debt relief and get back on track to financial stability.