Bills Logo

Veterans Debt Consolidation

Veterans Debt Consolidation
Betsalel Cohen
UpdatedApr 9, 2024
  • clock icon
    4 min read
Key Takeaways:
  • Prepare yourself with a personal budget.
  • Look for any VA or Special Aid Society.A VA Cash out mortgage is the only special debt consolidation for veterans.
  • Look for conventional debt consolidation solutions.

Debt Consolidation for Veterans: Prepare to Battle Debt

Veterans, like all American’s face debt problems. Your situation is unique, but shares the common reasons for debt, including rising expenses, emergency costs and drop in income. In recognition of service to your country, there are special benefits available to you as Veterans. Look for general debt consolidation options, as well as the VA debt consolidation for veterans loan.

In order to help your situation, look through the following debt consolidation or debt relief solutions:

  1. Budget Training - Prepare Yourself
  2. Scouting the field: VA and Army Related Aid Programs
  3. Looking over the Arsenal - VA Debt Consolidation Programs

Budget Training

Just as you went through basic training to learn how to be a soldier, you should take the time to learn how to manage your budget. Without the proper financial tools, you are going into the battle against debt at a disadvantage. Keeping a budget means that you will know how to answer these questions:

  • How much money do you make?
  • How much money do you spend each month?
  • How much debt do you have?
  • How much do you spend each month paying back your debt?
  • What types of assets do you have to use to pay off your debt?

Use the budget guide to help you take all the necessary steps to build and maintain your budget. No matter which debt consolidation route you take, your budget will put you in an advantageous field position to analysis your situation.

Quick tip #1: Different financial situations call for different tactics. Use innovative tool, Debt Coach to find your best debt relief solution.

Scouting the field: VA and Army Related Aid Programs

While these are not, strictly speaking, debt consolidation for veteran programs,look into any special programs available to veterans. A good beginning spot is the VA benefits Web site, which explains about special programs for education, health, employment and housing. Check their Web site for any programs that can help your financial and overall situation.

If for example you are having trouble with your mortgage payments and your servicer is not able to help you, then get in touch with a VA loan technician at one of their regional Loan Centers or call 1-877-837-3702.

In addition, there are many Aid societies for different branches of the service, including the Army Aid society, Coast Guard Mutual Assistance, Air Force Aid Society, and the Navy-Marine Corps Relief Society. Eligibility requirements vary, as do the type of assistance offered, ranging from emergency help to loans and grants.

While, these are not debt consolidation services, if you are having a hardship, check into all your alternatives, including those specially designed for veterans.

Looking over the Arsenal - VA Debt Consolidation

Debt consolidation solutions range from optimizing your payment schedule, loan consolidation, debt management, debt settlement and bankruptcy. The right solution will depend on your financial situation. The only real type of debt consolidation only for veterans is a VA cash out mortgage refinance.

Special Veteran Tool: VA Cash out Mortgage Refinance

If you are considering a cash out refinance, or debt consolidation loan, then you will need both of the following:

  1. Good credit, including a good credit score, good credit history and a low debt to income ratio.
  2. Sufficient equity in their house, usually up to a 80% LTV in a conventional loan.

The VA benefit package includes housing guarantees for veterans. It is possible to do a refinance for lower interest rate, or a cash out mortgage refinance. You need a COE (Certificate of Eligibility) to obtain a VA loan. The amounts available are subject to loan limits (by county) and guarantee limits as set by the VA. The amount of the loan can be as high as 100% of the value of the property. You can include the original loan balance, closing costs, and debts that you want to pay off. Underwriting guidelines are complicated and fluctuate.

Quick tip #2

your field position is strong, with equity in your house and good credit? get a mortgage quote for a va or conventional loan from one of participating lenders.

Conventional Debt Consolidation for Veterans

While surfing the internet, you will come across are all kinds of advertisements for VA debt consolidation loans. Many firms target special groups, and veterans are no exception. By changing the clothes of the model and a few marketing phrases, debt consolidation companies create a new product, debt consolidation for veterans. Don’t be fooled by the camouflage, and avoid scams. Don’t pay upfront fees.

Finding the right consolidation program for you is difficult. Read the article about debt relief for more information about loan consolidation, credit counseling, debt management, debt settlement, and bankruptcy programs.

Quick tip #3

Struggling to make your minimum debt payments? Get a free consultation from a prescreened provider.

Struggling with debt?

If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2023 was $17.503 trillion. Student loan debt was $1.601 trillion and credit card debt was $1.129 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in Texas, 15% have student loan debt. Of those holding student loan debt, 9% are in default. Auto/retail loan delinquency rate is 6%.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.