Posted on Dec 15, 2020
What are some good, military-friendly, debt consolidation companies?
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Just learned about one of my Paratroopers is $13,000 in debt to about 8 different companies. AER won't help due to amount and they give money for loan repayment/consolidation. We are sending him to budgeting classes and JAGbut he has a lot of expenses besides his debts so he's underwater pretty bad. Only other options I can think of is debt consolidation or bankruptcy.
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Posted 4 y ago
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Navy Federal Credit Union. I got myself into some deep debt about thirty years ago and got a consolidation loan from NFCU (and for more than your paratrooper) . I had to itemize every debt and the amount. The checks were made out to the creditors. I learned how dangerous charge cards are!
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CPT (Join to see)
Cpl Vic Burk - The military is a horrible employer in regards to consumer loans. Lenders prey on it because they know they can go to your employer and get at your money.
There is something worse though, and that's the predators of the GI Bill with crap education programs and suck the funds dry and leave service members with jack for education and training to leverage in their futures.
There is something worse though, and that's the predators of the GI Bill with crap education programs and suck the funds dry and leave service members with jack for education and training to leverage in their futures.
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Cpl Vic Burk
CPT (Join to see) - I have seen that happen to guys who didn't do their research on training first when using their GI Bill. I was under the old Montgomery GI Bill when I enlisted and talked to several schools before deciding to go to DeVry. I heard some great promises from some schools, all of which sounded too good to be true!
I remember reading something within the last year (I think it was here on Rally Point) about some school in San Diego sticking it to the government for something like thirty million bucks in tuition and fees with worthless training and virtually no return for the Veteran.
I remember reading something within the last year (I think it was here on Rally Point) about some school in San Diego sticking it to the government for something like thirty million bucks in tuition and fees with worthless training and virtually no return for the Veteran.
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MAJ Javier Rivera
Owner of Local Technical Training School Sentenced for Defrauding the VA out of almost $30...
SAN DIEGO – Nimesh Shah, owner of Blue Star Learning, a technical training school in San Diego, was sentenced in federal court today to 45 months in custody as a result of a multi-year scheme that defrauded the Department of Veterans Affairs out of almost $30 million in Post-9/11 G.I. Bill benefits.
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Cpl Vic Burk
MAJ Javier Rivera - Yes, that was the one I was talking about. A big scam that costed our fellow Veterans their GI Bill. The government will lucky to see a dime of that money back.
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$13k while not a small sum, but is manageable if the soldier doesn't have dependents and just hunkers down in the barracks and eats at the DFAC. I'm not saying that it will be fun, but $13K isn't out of control yet considering he has an employer that will feed, give him clothes, and shelter him outside of all payments to him.
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MSG (Join to see)
He has a dependent and has a separated spouse he must pay support to or I'd throw him in a barracks room so fast.
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SGT Jim Ramge, MBA
MSG (Join to see) - Luke, If his dependents do not live with, have him get a part-time job at the Commissary as a bagger, or elsewhere on base thru AAFES, etc. if time permits after COB. Have him work it off, will respect the work-off period that much more, especially if he did to himself. Otherwise, only thing I can think of is a ruptsy. And if he has a clearance, that might have just ended his military career if CMD pursued. At this point, a lot depends on the troop. Is he worth saving, what did he do to get there? His fault, or former spouse have something to do with? If he is worth saving, would talk to JAG and ask what options you have, he has, to support so as to not ruin his career. Would honestly give DFAS a call and ask them - since I'm sure this isn't the first time this has happened either. Ask them of any programs, might be surprised! Call USAA at [login to see] , and ask them some options if you belong to them, or even if you don't. He also has Pentagon Federal at [login to see] , he can look into... Explain your situation as a 1SG and ask what options he might have, see if he is willing to do a 3-way during lunch as well. Just some thoughts if he is a good troop in a bad situation and you know he's worth keeping around! Hope some or all of this helps! Jim
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MSG (Join to see)
SGT Jim Ramge, MBA he's definitely in a bad way. 82nd doesnt leave a lot of time for second jobs. He is definitely going to JAG for some advice.
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Let me be the naysayer on debt consolidation. It doesn't reduce your debt and normally doesn't reduce your overall interest payments since you are just paying them off over a longer period. I work in an industry that is very economically sensitive, so I've seen a lot of people try this route to try to compensate for income lose or mismanagement. Generally I see it being unsuccessful. If that soldier has a lot of expenses, child support or family as an example, that eats up a lot of his income, I would suggest he talk to a Bankruptcy attorney. Yes, he will take a credit score hit, but if he is late or not making payments, it probably sucks already and it won't make that worse. If will allow him to rebuilt it if he is reasonably careful.
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MSG (Join to see)
Tracking it wont reduce, but there are 8 creditors taking the meat off his back. At least putting it all under 1 loan he might be able to make payments that will reeuce the principle. We are pursuing the bankrupcty option as well.
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CPT Lawrence Cable
MSG (Join to see) - OK, personal advice. In 2010 the construction industry basically collapsed. I was in a job that was highly commissioned and the downturn cost me half of my income. My wife worked also, but anyway you looked at it, we lost at least 1/3rd of our family income. We struggled with it for about six months, but it was apparent that I would be able to replace that income in a time frame that would help, so it was file for bankruptcy or lose the house. Smartest thing I ever did, it allowed me to dump some consumer debt while preserving the homestead. The process today is long, you have to take the credit classes and attempt their help on reducing payments, but if you are at the point, it seldom helps. What did help me is that I was able to maintain payments until we filed, so even coming out of bankruptcy, my credit rating was above 650.
Don't let the stigma of a bankruptcy deter this soldier from pursuing a course that might help him more. I like to remember that they gave the richest portion of the economy 1.6 Trillion Dollars during the time period of foreclosures and bankruptcies. If the soldier needs a new start, encourage him to take it.
Don't let the stigma of a bankruptcy deter this soldier from pursuing a course that might help him more. I like to remember that they gave the richest portion of the economy 1.6 Trillion Dollars during the time period of foreclosures and bankruptcies. If the soldier needs a new start, encourage him to take it.
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