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Military service need not come with heavy financial or legal burdens.
The Servicemembers Civil Relief Act offers military professionals a variety of protections. Taking full advantage of your SCRA rights begins with knowing what they are and how they work.
If you enter active duty and have an existing credit card, auto loan, mortgage or other debt, you may be entitled to a lower interest rate. The SCRA prohibits lenders from charging more than 6% interest on debts incurred prior to active service. The coverage for credit accounts is the period of active duty. For home loans, the coverage is the same period, plus one year.
"Credit card accounts alone could result in savings of hundreds of dollars in interest," says JJ Montanaro, a CERTIFIED FINANCIAL PLANNER™ with USAA. For example, reducing an eligible 14.5% interest rate card with a balance of $5,000 to 6% could save you almost $500 during a 15-month period.
To take advantage of this rate cap, the SCRA requires you to:
Notify your lenders; and
Send them a copy of your military orders.
There are some exceptions, however. Service members also should understand that SCRA rules don't apply to debts incurred after entering active duty.
It's worth noting that under SCRA, if you're assigned overseas or to an area where your cellphone provider doesn't have coverage, you may cancel the contract with no penalties and fees.
You also may be entitled to life insurance protection benefits under SCRA. To learn more about eligibility requirements and to access the application for the Protection of Commercial Life Insurance Policy (VA form 29-380), contact the U.S. Department of Veterans Affairs office.
Other SCRA protections cover:
Terminating leases
Evictions
Foreclosure
Tax relief
Credit protection
Legal proceedings
For more details on these and for help understanding other rights under SCRA, contact your nearest legal assistance office or visit this U.S. government page.
@ SMSgt Minister Gerald A. Thomas Capt Christopher MuellerCPT (Join to see)COL Mikel J. BurroughsSgt Joe LaBrancheSSgt (Join to see)Capt Seid WaddellSrA Christopher Wright LTC Stephen F.PO2 Ed C. PO2 Mark Saffell MSG Tom EarleyPVT James Strait Alan K. PO1 William "Chip" NagelSGT John " Mac " McConnellSSG Leo Bell TSgt Melissa Post
The Servicemembers Civil Relief Act offers military professionals a variety of protections. Taking full advantage of your SCRA rights begins with knowing what they are and how they work.
If you enter active duty and have an existing credit card, auto loan, mortgage or other debt, you may be entitled to a lower interest rate. The SCRA prohibits lenders from charging more than 6% interest on debts incurred prior to active service. The coverage for credit accounts is the period of active duty. For home loans, the coverage is the same period, plus one year.
"Credit card accounts alone could result in savings of hundreds of dollars in interest," says JJ Montanaro, a CERTIFIED FINANCIAL PLANNER™ with USAA. For example, reducing an eligible 14.5% interest rate card with a balance of $5,000 to 6% could save you almost $500 during a 15-month period.
To take advantage of this rate cap, the SCRA requires you to:
Notify your lenders; and
Send them a copy of your military orders.
There are some exceptions, however. Service members also should understand that SCRA rules don't apply to debts incurred after entering active duty.
It's worth noting that under SCRA, if you're assigned overseas or to an area where your cellphone provider doesn't have coverage, you may cancel the contract with no penalties and fees.
You also may be entitled to life insurance protection benefits under SCRA. To learn more about eligibility requirements and to access the application for the Protection of Commercial Life Insurance Policy (VA form 29-380), contact the U.S. Department of Veterans Affairs office.
Other SCRA protections cover:
Terminating leases
Evictions
Foreclosure
Tax relief
Credit protection
Legal proceedings
For more details on these and for help understanding other rights under SCRA, contact your nearest legal assistance office or visit this U.S. government page.
@ SMSgt Minister Gerald A. Thomas Capt Christopher MuellerCPT (Join to see)COL Mikel J. BurroughsSgt Joe LaBrancheSSgt (Join to see)Capt Seid WaddellSrA Christopher Wright LTC Stephen F.PO2 Ed C. PO2 Mark Saffell MSG Tom EarleyPVT James Strait Alan K. PO1 William "Chip" NagelSGT John " Mac " McConnellSSG Leo Bell TSgt Melissa Post
Active Duty? Learn How to Lower Debt Costs
Posted from military.com
Loans
Finance
Benefits
Money
Posted 8 y ago
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You can also have Fleet and Family Services (for Navy and Marines) to set up budgets and management skills. I believe almost every command has a CFC (Command Finance Counselor) that can sit down with you to go over budgeting and figuring out what you can do with current obligations and how to save money while still maintaining your due amounts.
You can also be a CFC (E6 or higher I believe); check with your command.
You can also be a CFC (E6 or higher I believe); check with your command.
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I served a career without a single credit card, the first one I had was because my new civilian job involved travel all over the US and you couldn't rent a car without one. Even now, I only use one with no interest rates if paid off each month and gives rebates on purchases. If you can't afford it and it's not necessary, don't buy it!
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Thanks for sharing SP5 Mark Kuzinski I hope this information is very useful to those who are still on active duty in the military services of this nation.
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