Military Debt Programs

One undisputed, great characteristic for those in the Armed Forces is the fixed amount allotted to those who serve. Unfortunately at times, creditors and lenders take advantage of this fact by predatory lending. In other words, lending an amount that could very well exceed your bi-weekly and monthly paycheck. Creditors and lenders know your pay because it's associated with your rank that was applied on the application you filled out, and yet they often still surplus your allowance.

In the midst of your day-to-day duty, work ups, and rigorous training regiments there’s hardly enough time to manage bills, let alone find time to relax.

If you feel frustrated with the various personal loan(s), and / or credit card payments and would rather merge them into one lower payment then we have your solution. This service is either debt management, or debt settlement; financial hardship programs that surpasses all the rest.

Credit Debt USA will manage your payments, and give you 24/7 online access to view activity. Your monthly payment amount is dictated by you and accumulates in a FDIC bank account which will act as a third party account. A power of attorney for the specific debts you enroll will give us the authorization to settle these accounts individually with each creditor to whom which you owe.

The purpose of debt settlement is to close out the accounts for a negotiated lower balance, so that you're not stuck paying minimum payments which ultimately have little effect on the original balance therefore keeping you in debt, or sinking you deeper in.

During the financial hardship program your credit score will be initially negatively affected, once the program ends and your debts are paid off "settled" your credit score will drastically improve within 3-6 months. Why? Because your debt-to-income ratio accounts for 30% of your credit score, so now those balances are closed thus improving that aspect of your credit score.

Soldiers' and Sailors' Civil Relief Act

One of the most significant provisions under the act limits the amount of interest that may be collected on debts of persons in military service to 6 percent per year during the period of military service. This provision applies to all debts incurred prior to the commencement of active duty and includes interest on credit card debt, mortgages, car loans and other debts. The provision, Lindemann emphasized, applies to pre-service debts, and the interest rate reduction doesn't occur automatically — service members must request it.

Personal Finance Tips for Military Families

Kiplinger and the Better Business Bureau has put together "Personal Finance for Military Members, Your One-Stop Guide to a secure future." This is a great guide, loaded with valuable information regarding investing for your future, avoiding scams, active duty credit alerts, strategies before and after deployment, smart home-buying tactics, transition to civilian life and financial resources for military families.

This guide can be accessed at:
http://www.kiplinger.com/family-finance/

The Authors Active Duty Financial Experience

As an active duty, 0341 E-3 Lance Corporal Marine I owned my first 2 story, beautiful house at the age of 19 with a fixed 5.5% interest rate. Budget was tight, that's for sure! However, it felt good living in a bigger house than the Captain, and First Sergeant not just for bragging rights but because the real estate I invested in helped me succeed professionally after my 4 years of honorable service. The "famous to the few" city I purchased in was Jacksonville, N.C. and fortunately when it came time to cash out (sell), I earned a whopping 28% on the $100,000 dollar home I lived in within 2 short years.

I would consider starting with nothing, departing the Marines after 4 years as an E-4 with 28k an achievement and hope that any and each service member invests, or saves wisely especially before egression from the military.

Personal Financial Setbacks

I too made financial mistakes, after 2 deployments to Iraq I was as an OP-4 aggressor assigned to a special detachment in California; far from home and without transportation.

Aside from losing $1,200 in a matter of hours in Las Vegas, then asking for the Marine buddy bailout, I decided to purchase a motorcycle commonly referred to as a "crotch rocket". Maybe it was the "Top Gun" vision I had of cruising the coastline of California that drew me into the dealership. Anyway, anxious and financially naive (bad combination) I purchased this motorcycle with a 12% revolving credit line. Little did I know after being late on just one payment the interest rate would double, no joke! My payment hiked, and just 48 hours after the purchase a friend had dumped the bike. On top of that it cost me $800 to ship this out of commission bike back to North Carolina.

With little to no options, I filled out my information online and just minutes later received a phone call. It was a debt settlement agent, diligently returning my phone call. At the time I knew little about debt anything. What I did know is that I couldn't afford nor did I want to waste $200 dollars a month that went purely towards interest and fees. Once finishing the debt settlement program my account had been settled I decided this would be the professional industry to publish for, and have been passionately ever since my EAS.