Debt Relief Solutions: Active Duty Service Members Have Options
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Those who are members of the United States military have a lot to deal with. For those who have debt problems, seeking debt relief solutions can be challenging in most cases because they do not have the time or resources to create financial plans or find debt relief. Family members of these individuals will end up facing the consequences of their debt problems if they are not resolved, but debt relief options exist for service members due to their status. One of the most useful tools is the Soldiers’ and Sailors’ Civil Relief Act, which has been significantly improved in recent years to help the military deal with their debt problems.
The SSCRA has now been changed to be known simply as the Servicemembers Civil Relief Act, or SCRA. This provides benefits for those in the military so they can get the debt relief they need with less hassle than ever before. Options that have been enhanced include mortgages, taxes, credit card debt, lease termination, and pending lawsuits. This law only covers debts that were created prior to service and does not include debts incurred while in the military. Here are the benefits for active duty service members:
– Any family with an active duty member who pays $1200 or less in rent for their home is protected from eviction.
– Active duty service members who are being reassigned for more than 90 days have the right to terminate a pending lease.
– Prevention of double taxation for the spouse of an active member of the armed forces who works in a state other than that of their permanent residence. Due to the nature of the job, this shields military families from financial hardship related to tax increases, since the job requires a lot of moving.
– All credit cards are limited to very little interest, including debts incurred before service and debts incurred during active duty. Everything that exceeds the fixed interest is exempt once the military service is completed.
– Reserve and Guard members now have the benefit of better life insurance. The maximum policy coverage is now $250,000 instead of $100,000, giving families more protection against default while on active duty.
The military has seen great improvements in the rights they receive with respect to credit and debt, as well as other areas of daily life. There are many debt relief options for active duty and non-active duty members of the armed forces in the United States. These men and women are risking their lives for their country, and they should get some extra concessions for it. Debt settlement, debt negotiation, and credit counseling are also available to service members and their families. However, before choosing any debt relief solution, it may be helpful to obtain permission from the commanding officer because debt relief can often affect a person’s security clearance.
