Military and veterans’ debt relief options are available to help service members and veterans who are struggling with debt. These options can provide much-needed financial relief and help individuals get their finances back on track.
Service Members Civil Relief Act (SCRA)
One option available to military service members and veterans is the Service Members Civil Relief Act (SCRA). This federal law provides financial protections for active duty service members, including a cap on interest rates for certain types of debt. The SCRA also provides protections for servicemembers who are called to active duty, including the ability to postpone or suspend certain financial obligations.
Military Lending Act (MLA)
Another option is the Military Lending Act (MLA). This federal law provides additional protections for active duty service members and their families, including a cap on the annual percentage rate (APR) for certain types of consumer credit, such as credit cards and car loans.
In addition to these federal protections, many states also have laws in place to provide debt relief for military members and veterans. For example, some states have laws that provide protections similar to the SCRA and MLA, while others have programs that provide financial assistance or legal aid to help military members and veterans resolve their debt.
There are also a number of non-profit organizations that aid military members and veterans who are struggling with debt. These organizations may provide counseling, financial education, and other resources to help individuals get their finances back on track
One such organization is the National Military Family Association (NMFA). The NMFA offers a variety of programs and resources to help military families, including financial education and assistance with debt management. The NMFA also has a legal assistance program that provides free legal services to military families, including help with issues related to debt and credit.
Another organization that provides assistance to military members and veterans is the Military Warriors Support Foundation (MWSF). The MWSF offers a variety of programs to help military families, including financial education and assistance with debt management. The MWSF also has a mortgage-free housing program that provides mortgage-free homes to military families who are facing financial challenges.
In addition to these non-profit organizations, there are also a number of for-profit companies that offer debt relief services to military members and veterans. These companies may offer debt consolidation, debt negotiation, or other services to help individuals get their finances back on track. It is important to be cautious when considering these types of services, as some may charge high fees or have questionable business practices.
Department of Veterans Affairs (VA)
Another resource for military and veterans’ debt relief is to seek assistance through the Department of Veterans Affairs (VA). The VA offers a number of programs and resources to help veterans and their families, including financial education and assistance with debt management
For example, the VA has a program called the Financial Services Center (FSC) that provides a variety of financial resources to veterans, including help with budgeting, credit repair, and debt management. The FSC also offers a Debt Management Center that provides assistance to veterans who are struggling to pay their bills and are at risk of defaulting on their loans.
The VA also has a Home Loan Program that can help veterans purchase, build, or improve a home. This program offers a number of benefits, including no down payment, no mortgage insurance, and low interest rates. The VA also has a Refinance Program that can help veterans lower their monthly mortgage payments or get cash out of their homes.
In addition, the VA offers a Vocational Rehabilitation and Employment program that helps veterans with service-connected disabilities to prepare for, find, and maintain suitable jobs. This program can also provide financial assistance to veterans who are looking to start their own businesses.
Lastly, the VA offers a Pension program that provides tax-free financial assistance to wartime veterans with limited income and assets. It can also provide aid and Attendance benefits to veterans who are housebound or require the regular attendance of another person to assist in daily living.
It is important to note that each of these options may have specific eligibility requirements, and it’s recommended to check the VA website or consult with a VA representative to see if you qualify.