Military debt is surprisingly common amongst soldiers. Protecting our country often leads to loved ones at home with financial worries.
Deployment is not always to blame for these struggles, military families are vulnerable to the same financial traps that everyone else is exposed to.
No matter who you are, debt is no fun! Here are some basic tips to help relieve the stress of financial debt.
Create A Budget
First things first, realize that financial management is the #1 debt solution. There are many ways to dispose of debt, but realizing what you can cut back on and creating a budget for your family will help set you in the right direction.
There are many free websites and apps that can help you create a budget, save, and make smart financial decisions.
Avoid More Debt
Do not acquire more debt. You will find that it will be more challenging to get out if you keep adding to what you already owe.
A good rule of thumb is to use a “cash only” principle while you are trying to get out of the hole. You can’t spend what you don’t have on hand, right?
If the debt you owe is beyond what you can pay, you can call your creditor to see if there are any discounts available. If you have any sort of VA loan, there are different ways to consolidate.
The advantage of going through with a Military Debt Consolidation Loan is that you will most likely pay a lower interest rate than what you would get with trying to pay the debt off with a normal credit card.
Depending on what lender you choose to go through, you can have your loans spread out over 10,15, or even 30 years. It’s not ideal but can give you more of a stretch.
If you feel like you have completely hit a wall and have tried everything, another option is to obtain another source of income.
While one member of the family is deployed and providing, the one at home should try to collect earnings. Try to hustle until all your debt is paid off. This can take the stress off of the one that is away, not to mention pay off your debt faster.
Remember, paying debt off will take time. Work as a team to educate each other and establish a solid plan.