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Debt Relief Service Members

American personal debt has reached 2.6 trillion U.S. dollars earlier this year, and men and women of the armed forces of the nation has felt its share of financial difficulties. However, a law nearly 70 years, helping to alleviate the debt burden to those who are called to actively serve their country.

financial protection for service members exist in the form of Law service members' Help Civil (SCRA). Under the law, called the Soldiers and Sailors Civil Relief Act when it was written in 1940 and was renamed and updated in 2003, lenders should top 6 percent interest rate to the service members military loans committed before becoming active.

The maximum 6 per cent interest applies to all charges – including credit card debt, service fees and renewal fees or costs – excluding insurance of good faith. The law states that to receive reduced interest rates, a service member must apply in writing and include a copy of your military orders. additional protections include:

Reducing interest rates on mortgage payments.

Protection from eviction if rent is $ 1,200 or less.

Delay of all civil proceedings such as bankruptcy, foreclosure or divorce proceedings.

Promise that the service members who claim one of the protections of the law do not feel negative effects on their credit reports or be denied credit in the future because it. (This protection was added in the 2003 revision of the law.)

Some credit card companies go beyond what the law requires and provides additional benefits for service members. However, many lenders simply ignore their needs, "said Carl Auclair, who heads U.S. military services, debt management, a service unrelated to the military, but to advise and inform members of the armed forces who are fighting with debt. There are criminal sanctions in many sectors of the SCRA for violations of the law. Also, many sections of preserving the right of members of basic services legal action to protect the rights of others independent of the SCRA.

The figures show that men and women of U.S. military Use aid, even if there is a dispute about the extent their debt problems. A 2006 Associated Press review of records of the Navy, Marines and Air Force showed amazing increase in the number of soldiers who had their licenses to be deployed anywhere in the world revoked as a result of personal debt. The AP found that among branches that provided information, the number of licenses revoked by the debt rose from 284 in 2002 to 2,654 in 2005 – a maximum of 935 percent.

On the other hand, studies conducted between 2002 and April 2007 by the Defense Manpower Data Center (DMDC) and the Defense Department revealed the opposite.

"The data show a downward trend in service service members reporting difficulty keeping their finances"

Spokesman Department of Defense, Mr. Eileen Lainez said. "Information about the financial health gathered at that time shows that the vast majority of soldiers are not reports of financial difficulties paying rent or mortgage. In the past three years, service members were reported to save more for their future. "

Air Force sergeant. Brandon Jacobson also denies that personal debt is a problem in the military in the civilian world. Has a financial blog called money for the military and stressed that men and women have the same additional benefits that can help move away from debt.

"The army is actually provided more protections: free education, financial assistance to companies willing to pay civil service members of Act Civil aid and loan protection, "said Jacobson, now stationed at Beale Air Force Base outside Sacramento, Calif." I would not say that we more sensitive to debt and civilians. "

However, Jacobson did recently to help a friend on the basis of the alleged reduction interest rates. When the friend approached Jacobson financial advice personal debt mounting, Jacobson noted that most of its debt – including Credit card debt and car payments to 16 percent mixture of interest – he ran before joining the Air Force.

"Four these companies of credit cards has reduced the interest rate to 6 percent immediately, "said Jacobson." In the car loan to send them fax your military orders, and fell 6 percent immediately. It is a type better than my first car. "

The ceiling of interest also includes the practice of payday loans, which have been shown to take advantage of member services with the promise of a payday loan money in exchange for any form of identification and inspection after the date of capture. exorbitant annual interest rate that can exceed 400 percent.

It is a serious issue for the military. In public hearings, military personal debt as a threat to both individual service members and the interests of the armed forces abroad, as the stress of combat troops home finance can distract from its primary mission or – worse yet – the temptation to sell secrets to our enemies.

American Military Debt Management Services Auclair points to what she sees as the low salaries in the army, the difficulty for spouses seeking employment in a service member is transferred, and the rising cost of living that contribute to the problem of military personnel burden of debt has increased.

"It's a disaster," said Auclair. "I had more customers in Hawaii can not even afford to make the cable because of the cost of living there, and the provision that the government covers the actual cost is life in an area that is more inflated. "

Auclair also dispels the myth that victims are mostly military debt younger, low-ranked soldiers who see a stable income for the first time in their lives.

"After reviewing the industry over the past 10 years, I think most of our clients are not the young soldiers," he said. "They are intermediate-level employees – usually not sub-lieutenants, first lieutenants and usually more. The reason is, they have had time to start a family and increases supposed to be paid do not cover family expenses, and have had time to accumulate debt. "

"Very rarely, we have a Service youngest member just wild pig. "

For more details about the event and begin the process of applying for emergency aid see website Army Civil Relief Act, administered by the Defense Manpower Data Center.

About the Author

Lisa C. Zapalac, Principal Partner and VP Public Relations for http://www.casanuevaguide.com has been actively working in the real estate and business industry since 1996; prior to opening her own public relations company Zapalac was named editor in 1991 for the Houston Chronicle Homeline and Real Estate sections.

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