Debt consolidation is a good way to get debt under control and it is not only for former students with many student loans. Military personnel with a number of pesky debts can get them all rolled into one. Having a lot of little loans, or even a few large ones, can be a monthly debt management nightmare.
You have multiple payments, all due on different days with different amounts, and all with different interest rates. What a bother! Every month you risk getting a late fee tacked on, or missing a payment completely. Money management is so much easier and far less risky if you have one payment to one lender with a military bad credit debt consolidation loan. And your monthly payment will probably be a lot less than the sum paid on all your former debt.
Other good things can come from loan consolidation. It produces an immediate upward movement for your credit scores. Instead of having multiple lenders, you have just one. That is a lot nicer looking to credit checkers. Also, if you do automatic payments to that single account, you lose the risk of being charged late fees or missing any payments. That provides another boost to your credit scores.
Traditional lenders such as banks and credit unions have tightened up their lending practices since the big bust at the end of the last decade. Many folks with bad credit cannot get loans. Even borrowers with good credit have trouble landing a loan. Seeing a growing market, private lenders have stepped in and now there are many lenders willing to extend military bad credit consolidation loans. Most of these lenders have set up shop on the internet, making shopping for a loan much easier for the borrower. Just punch your web browser with this key phrase: bad credit military consolidation loan. You will be immediately shown a large number of lenders willing to give military members loans.
Online credit applications are easy to fill out and approval can be had within 24 hours, sometimes sooner. Be sure you have all your documentation handy. You will need bona fide government identification, a checking account with direct deposit, proof of service and salary, and proof of residency. Just be sure the site where you divulge your personal and financial information is secure and be sure to check the reputation of your lender. The online Better Business Bureau listings would be a good place to start.
Soldiers and Sailors Relief Act
Even if service members have bad credit, the Soldiers and Sailors Relief Act dictates that they are allowed lower interest rates on personal loans for debt relief. The amount of reduction can be as much as six percent off the original interest of the loan. This act was made into law because of the essential service military men and women make to the nation. Lenders must comply. You will also find lenders who specialize in making loans to military personnel so there is no confusion over interest rates.
You Deserve It
Your military service should allow you to get a decent bad credit military debt consolidation loan. Take advantage of it to get a handle on your debt and be debt free in the shortest time possible.