People in the armed services like everyone else can have trouble with their finances because they move around a lot. One thing these people are doing is looking into military debt consolidation. This helps to reduce the amount of monthly payments that have to be paid. By paying off several debts and paying one smaller payment, one can get out of too many different payments and start to control their debt.
One of the plusses of military debt consolidation is the fact that people who consolidate debts in the military are often assisted with money management by the government. Sometimes they open new accounts that put them right back into the same circumstance or worse. The reason for military debt consolidation is to reduce expenses not to increase debt. Many companies tout the benefits of debt consolidation as the cure for money problems. The military tries to avoid this.
Military financial counselors are trained to use military debt consolidation as a tool to help manage debt for service people and their families. Make sure you check out anyone claiming to offer military debt consolidation. There are companies out there who offer special discounts and programs to military personnel, but there are also companies who veil themselves under website URLs and names that claim to offer military debt consolidation services. These companies often have nothing to do with helping you with your problems. They just want to give you a high-cost loan or charge you fees to “service” your accounts. Steer clear of anyone who doesn’t check out with the Better Business Bureau or other consumer advocacy groups.
People in the military who own property, when considering military debt consolidation, should know whether or not it has to be secured with personal property such as their home’s equity. That can be risky because you could lose your house if you don’t pay back the loan. Also, even if you file bankruptcy you may still have to pay back the loan if you want to keep your home. Be sure to check with a financial counselor on the best path for your money – not just a debt consolidation.