What Options are Available to Military Members Struggling with Personal Debt?
If you are a member of the military, you understand the challenges of making ends meet on a tight budget and with all kinds of obstacles in the way. The financial problems that military families face are unique, especially in light of how difficult it can be for military spouses to find full-time employment. While it can be frustrating and scary to find yourself saddled with personal debt, there are resources available to members of the military to help you figure a way out of this problem.
One of the fastest ways to get a handle on your finances is to think about debt consolidation through a personal loan. What this option allows you to do is consolidate all of your existing debt into one lump sum. You make a monthly payment on this loan just like you would for any other personal loan. Many military members find that it is much easier to keep an eye on their finances with a single loan to pay down.
What are the Necessary Steps to Consolidate Your Debt?
One of the very first things you should do to make sure that you are making a sound decision is to account for all of your monthly debt and the interest rates that you are paying for each obligation. After that, you should request a copy of your credit score so that you can find out the information that financial institutions will use in considering whether to grant you a personal loan. If you find out that your credit score is lower than what you would have hoped for, you can always work with a debt consolidation service to find out non-traditional options that may be available to you. Remember that these services may charge a fee for their assistance.
The next thing you need to do is to shop around for the best interest rate for your personal loan. Military members have access to financial institutions that other civilians may not be able to take advantage of, such as USAA and Navy Federal. Often times, these institutions are able to offer a more competitive interest rate than what you would find at a typical bank. To find out whether you would actually be saving money by consolidating your personal debt, experiment with the debt consolidation calculators available online.
Why is Debt Consolidation Better than Filing for Bankruptcy?
Debt consolidation is best viewed as a tool to prevent you from having to file for personal bankruptcy. It is a way to accelerate your payment schedule so that you can get on the right financial course. Bankruptcy should only be considered as a way to fight imminent legal action against you. There are lasting consequences for your personal credit in filing for bankruptcy. You may need to consult with an attorney or accountant if you are concerned that filing bankruptcy is the best option available to you.