Stop Debt Collectors From Harassing
The Fair Debt Collection Practices Act bars debt collectors from engaging in harassing behavior. If you believe a , you can ask them to stop contacting you.
You’ll need to send a written notice to the collection agency requesting that they cease and desist all contact. It’s a good idea to keep a copy of the letter for your records. If the debt collector persists, the FDCPA allows you to sue them for damages.
Preparing Financially As A Veteran
If youve recently left the military, you can take several steps to get your finances in the kind of shape that would impress a five-star general. Among them are:
- Set up a budget. Not only should you lay out a spending plan, but you should strive to stick to it. A household budget will help you navigate post-service changes in your financial situation.
- Slash high-interest debt. High-interest debt can eat away at your wallet. Reducing this debt puts more money in your pocket for necessities like housing and groceries.
- Explore health insurance. Once youre out of the military, you may no longer enjoy access to government-sponsored health insurance, but you can take advantage of insurance deals for veterans and benefits from the U.S. Department of Veterans Affairs . However, those benefits likely wont extend to your family. Therefore, you might need to look into private health insurance.
- Create an emergency fund. In a 2021 survey by Navy Federal Credit Union, 27 percent of military families reported establishing or adding to an emergency fund as a result of the pandemic. Pandemic or not, setting aside money for emergencies is wise for veterans, too.
The Bottom Line On Options For Debt Relief
As Ive always said, spending money is simple, but debt is complicated. Depending on the types of debt you have and how those debts have affected your credit, you may need more than one of these solutions. Id recommend mentioning that youre a Veteran to any service provider that you talk to. They may have discounts for Service Members and Veterans, which can be a big help as you work to get out of debt. Good luck, Jonathan. If you can handle military service, you can handle this.
Debt.com can match you with the right options for debt relief based on your unique financial situation. Request a free consultation.
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Tell Debt Collectors To Cease And Desist
When you are dealing with a debt collector, you may have been pursued various times, repeatedly. If this is something you have dealt with, you may not realize that you can simply ask a collector to stop contacting you.
This is called a cease and desist. It can be in the form of a letter, but you can also ask them to stop and they are required to do so under the FDCPA. The FDCPA provides protection against creditors. If you specifically request they cease and desist, they must comply, punishable by law.
Other Sources Of Military Debt Relief
Working your way through the VA bureaucracy can take its toll. Still, taking advantage of federal VA benefits programs can be useful. Among other things, the VA offers financial advice and legal counseling.
Meanwhile, if youre a veteran battling to make ends meet after leaving service, there are other sources. Here are a few other options:
The American Legion can step in with cash grants for families needing help with the cost of shelter, food, utilities, and health expenses.
MilitaryOneSource, a Department of Defense organization, provides free financial counseling, resources on navigating military life, education, housing and more to current and retired military members and their families
Organizations that provide financial assistance to veterans include Operation First Response and The Coalition to Salute American Heroes. Each intervenes on behalf of veterans who are facing emergencies such as utility shutoffs, foreclosure or eviction, vehicle payments, groceries, and food.
Disabled American Veterans supports veterans who became disabled as a result of their service. With more than 1,300 chapters and 1 million members across the country, DAV helps provide the resources disabled veterans and their families need to pursue life to its fullest. Services include transportation, assistance with applications for services, education, and home-loan guarantees.
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Debt Relief For Veterans
About Caitlyn
Caitlyn is a freelance writer from the Cincinnati area with clients ranging from digital marketing agencies, insurance/finance companies, and healthcare organizations to travel and technology blogs. She loves reading, traveling, and campingand hanging with her dogs Coco and Hamilton.
At a Glance
According to the 2020 Military Financial Readiness Survey, 35% of service members said they do not pay their bills on time, 54% said they are just getting by financially, and 86% said they worry about their finances.
Only 33% of veterans with personal debt are very confident they can pay off their loans.
If youre trying to pay off debt, it can feel overwhelming. However, if youre a veteran, there are options available to you that may not be available to civilians and can help you pay off your debts faster.
In this article, learn more about:
Best Credit Cards For Veteran Business Owners
American Express Business Gold Card
Veteran business owners have their own unique set of needs and priorities when it comes to credit cards typically far different than your average card holder. The Business Gold Card goes a long way towards supporting these needs. Of note, cardholders receive a 70,000 point sign-up bonus after making $10,000 in purchases. Additionally, you receive 4x points for the two expense categories with the most purchases in a given month, meaning you get rewarded for where you spend most frequently.
Currently, the Business Gold Card charges a $295 annual fee.
Major Benefits
But, this fee must be measured against what we see as the cards primary benefit: its pay-over-time option. For small business owners, managing cash flow proves one of the most critical tasks to successful operations. Without cash, operations stop.
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Debt Relief Grants For Veterans
Veteran debt relief grants are available to veterans who have outstanding debt and meet certain requirements. These grants can provide financial support without the need to repay the money. This financial aid gives immediate cash that can be used for basic life needs, including repaying debt.
Other nonprofit organizations offer grants to veterans to help with financial difficulties they may face. These programs provide financial aid grants to those who apply and qualify, some of which pay the creditor directly, removing the burden from you.
Can The Va Help Me With Debt
There are a number of programs offered by the government to help veterans manage and repay loans and other debt, some of which may even forgive debt. Examples of debt relief available for veterans include:
1. Military debt consolidation for VA homeowners. If you have a VA home loan, you may be eligible for a Military Debt Consolidation Loan . This allows you to borrow against the equity in your home and use those funds to pay off other debts. Partially guaranteed by the VA, youll have access to better loans, interest rates, and terms.
2. Credit counseling. This process helps primarily with . A certified credit counselor will help evaluate your debt and determine the best options for debt relief based on your personal situation.
3.Debt consolidation. Consolidating your debts means combining multiple debts into one more manageable debt, ideally with lower interest. There are different options available for consolidation, such as consolidation loan or balance transfer.
Having a VA loan qualifies you for a MDCL which can also be used to pay off other unsecured debts like credit cards, medical bills, and other personal loans. Typically, youll pay a lower interest rate than civilians, saving you money in the long run.
Additionally, VA military debt consolidation loans usually have easier qualifying standards, lower credit score and debt-to-income requirements, longer repayment terms, and other benefits.
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What Is The Gi Bill
The GI bill, originally passed in 1944, allows veterans to receive higher education or vocational training for free, or nearly free. Veterans must choose which program to use in order to optimize their benefits, and options include:
- The Yellow Ribbon Program, intended to help with the cost of private school tuition and offered at more than 1,800 colleges in the U.S.
- Post-9/11 GI Bill, which applies to individuals with active duty service on or after September 11, 2001
Student Loan Cancellation Programs
Perkins loan cancellation. Borrowers with federal Perkins loans can have up to 100% of their loans canceled if they work in a public service job for five years. In many cases, approved borrowers will see a percentage of their loans discharged incrementally for each year worked. The Perkins loan teacher benefit is for teachers who work full time in a low-income public school or who teach qualifying subjects, such as special education, math, science or a foreign language.
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Incharge Military Financial Resources
As a way of honoring military service and showing appreciation for the sacrifice of military families, InCharge offers these tailored resources:
- Military Money Articles. InCharge is proud to publish Military Money articles on InCharge.org: a comprehensive personal finance portal for service members and their families. Find informative articles, videos and podcasts about the GI Bill, VA loans, Thrift Savings plans and much more.
- Free military and veteran eBooks. Recent publications include Defending Your Home, a guide to military housing issues, and Transitions: Where Do I Go from Here? How to transition from military to civilian life.
- Daily tips-oriented Military Money Minutes broadcast on Armed Forces Radio.
Defending Your Home eBook
Defending Your Home is designed for service members, veterans and their families to help with navigating the special housing challenges faced by those who serve. May this book help you establish and maintain your own personal and financial security through sustained homeownership.
Fact Sheet: The Biden Administration Announces New Actions To Lessen The Burden Of Medical Debt And Increase Consumer Protection
Vice President Kamala Harris to announce reforms across four areas to ease the burden of medical debt, giving more American families the opportunity to thrive
Today, as part of the fight to help Americans deal with high costs, the Biden-Harris Administration is announcing new actions to protect consumers and lessen the burden of medical debt on American families. Together, these actions will help:
- Hold medical providers and debt collectors accountable for harmful practices
- Reduce the role that medical debt plays in determining whether Americans can access credit which will open up new opportunities for people with medical debt to buy a home or get a small business loan
- Help over half a million of low-income American veterans get their medical debt forgiven and,
- Inform consumers of their rights.
One-in-three adults in the United States have medical debt. It is now the largest source of debt in collectionsmore than credit cards, utilities, and auto loans combined. Black and Hispanic households are more likely to hold medical debt than white households.
Medical debt is not just a financial issueit can have negative health effects too. One study found that almost half of individuals with medical debt intentionally avoided seeking care.
Holding Providers and Collectors Accountable
Improve Government Underwriting Practices
That is why, today, the Administration is announcing actions that go beyond recent private sector announcements.
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What To Know About Social Security Disability And Credit Card Debt
Social Security disability benefits do not include any specific provisions for . However, those benefits are protected from creditors.
Debt collectors cannot take your Social Security benefits, including Supplemental Security Income , or any VA benefits you might receive to satisfy unpaid debts. Your bank or credit union is required to automatically protect two months’ worth of benefits from garnishment. Any amounts over that can be frozen or garnished, but it’s possible to get those funds back if you can show the court that they’re exempt.
Your benefits are also protected from garnishment if you have them loaded onto a prepaid debit card. To take advantage of these protections, however, you do have to opt in to direct deposit of your Social Security disability payments.
Debt Relief Programs For Veterans
The government offers numerous programs to manage, repay and even forgive student loans and other debt if youre a veteran. One option is the total discharge of your student loans if youre a disabled Veteran whose disability is connected to your service. This program is called Veterans Total and Permanent Disability Discharge.
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Debt Collection While On Disability
Aside from worrying about potential lawsuits, another question that may arise is: How can credit card companies go after me for my debt while Im on disability? Like most answers, this is a little bit nuanced. In short, yes, credit card companies can still pursue you for debt repayment. That said, they may not have a lot of incentive to pursue you for repayment.
Debt collection can be a brutal thing to go through. After missing a set amount of payments, creditors can begin going after you to try and get you to repay what you owe. If your missed payments were just an oversight, then the issue can pretty easily be fixed and the creditors will stop bugging you for payment. However, if you missed the payments because you simply couldnt afford to make them and still be able to cover your basic living expenses, this process can be difficult.
What Happens If I Want To Earn Extra Money / What Can I Do To Keep That Money Safe
The extra money you earn over the internet or otherwise can easily be protected from collectors. It will be available for you and your needs. You donât need to worry that any extra money earned will have to be used to pay old debt. Here are reasons why this extra money is safe as well as some rules to follow:
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Filing A Bankruptcy In Texas For Veterans And Military Service Member
If you are a veteran or you are currently serving in the military, our Dallas and Ft. Worth bankruptcy lawyers can help you find an affordable solution to your debt problems.
However, make sure that you let us know you are a veteran or a service member. We want to make sure we review any debts owed to government agencies or entities, including , during your initial consultation to determine if the debts must be treated differently from other debts. In addition, you may receive certain considerations if you are an active military service member who is subject to being deployed at any moment.
Contact Leinart Law Firm for a free consultation by calling 232-3328 or 426-3328. Our Texas bankruptcy attorneys serve clients throughout the Dallas-Fort Worth area.
Free Bankruptcy Evaluation
Discuss your situation and your options with an experienced bankruptcy lawyer.
Debt Protection Programs For Veterans
Whether youre a veteran or on active duty, look for businesses that cater to service personnel. Give these programs a chance. Youre not taking unfair advantage of your service youre giving the provider who knows your dollars are tight an opportunity to express his/her gratitude.
Otherwise, do not allow yourself to be locked into a state of financial anxiety. Instead, avail yourself of the protections in place to help stretch your scarce dollars. These programs are designed specifically to help keep military personnel and veterans out of debit.
The federal government has safeguards in place to help protect veterans, including:
Servicemembers Civil Relief Act : Active-duty service personnel, reservists, and members of the National Guard while on active duty are protected by SCRA, which has provisions that include:
Joint Federal Travel Regulations: Designed to protect military personnel facing foreclosures or evictions, this regulation provides cash allowances to assist with travels and transfers associated with landlord actions.
Military Lending Act: The MLA puts a cap on interest and fees imposed on military service personnel who indulge in what amounts to desperation debt: payday loans, tax-refund anticipation loans, and vehicle title loans. Its not much of a cap, really 36% but it beats what civilians sometimes pay.
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