Military Debt Consolidation Loans Explained

Military debt consolidation loans are those directed at military personnel in an attempt to get them to consolidate their debt. Most military debt consolidation loans are offered by private companies that understand and know that military members have a reliable paycheck and a reliable source of income and want to get their hands on some of that income through offering loans at unfavorable rates. This is usually not the best idea for you, and you may want to explore other options. 

Understanding a Debt Consolidation Loan

A debt consolidation loan is really just a loan you take that allows you to use the proceeds to pay off other debts you have so you will end up only owing one lender instead of several. For example, assume you had a car loan of $10,000, one credit card with a $5,000 balance and another credit card with a $2,000 balance. If you took a debt consolidation loan for $17,000, you could use that $17,000 to pay off all those other loans for which you owed money. Then, you would only owe the lender that issued the debt consolidation loan.

Military debt consolidation loan companies offer to be that lender, but you don't have to choose such a company. You also have other options for finding a loan you can use to consolidate your debt:

  • You may be able to qualify for a standard personal loan at any bank.
  • You may be able to tap into home equity with a second mortgage or home equity line.
  • You may even be able to take advantage of a "balance transfer" offered by one of your credit card companies. (Be careful, though, because the low promotional rates associated with such offers last only for a limited period of time, and if it takes longer than that to pay off your balance in full, you could end up with a higher interest loan than what you started with.)

These options should generally be considered before getting a special "military consolidation loan."

Getting Help

Before getting a military consolidation loan of any type, you should also strongly consider speaking with a lawyer. He or she can assist you in exploring your options for dealing with the debt you have in the smartest way possible. 

Talk to a Lawyer

Need a lawyer? Start here.

How it Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you
NEED PROFESSIONAL HELP ?

Talk to a Debt Settlement Lawyer.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you