It is a known fact that military men and women face adversities when called upon to perform their active duties. The decision to leave his or her family for an indefinite period puts a long-term implication on their family life. As a result, many military men and women who are called to active military service have to forgo their second income for the duration of their service. Without job stability, this can bring additional burden for them as the sole breadwinner of the family.
As a result, military personnel are placed at a higher risk of falling behind their monthly payments and financial needs such as rent, mortgages, car allowances, car loans, health insurance, credit card payments, loans, and may even resort to filing for bankruptcy.
However, many military men and women are not aware of the protections available to them. Under the provisions of Soldiers and Sailors Civil Relief Act (SSCRA), the United States Congress passed the law in the early 1990s to protect military personnel and their families from financial turmoil while serving their country. Under the law, mortgage lenders cannot charge in excess of 6 percent interest on mortgage loans of active-duty military personnel.
- Termination of a leasing contract: Under certain conditions, active-duty military personnel can terminate the lease without consequence.
- Mortgage Relief Program for Military Personnel: If you can’t meet your current mortgage obligations, the law allows temporary payment relief through the Federal Home Loan Mortgage Assistance Program (FHPA). Mortgage waiver is conditional upon certain conditions and is assessed on a case-by-case basis by the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA).
- Protection of tenants from eviction: For military personnel, they are given increased protection from eviction. Landlords are required to provide tenants a relevant period (usually 3 months) for periods of recovery.
- Loan and credit card interest: Credit cards, banks, and lenders are only allowed to charge active-duty military personnel a maximum of 6 percent interest on credit card debt and other loans. This provision applies only to accounts set up before the active duty and not to other types of credit card or bank account or credit union.
- Delay of all Civil Court Actions: Under certain conditions, the military personnel who are allowed to delay all civil court actions in the event of military injury or illness. The above protections are only some of the provisions of the SSCRA, and not all of them apply to all military personnel.
CreditGUARD of America recognizes the financial struggles our military members face. There’s nothing a good non-profit credit counselor can’t fix. Here at CGOA, we work with counselors to help service members and veterans obtain the best debt solutions by reducing interest rates and managing your debt payments in a 3 to 5-year time frame. At Creditguard, we even have special military payment options for active military personnel. To schedule a no-obligation consultation, just visit https://www.creditguard.org or call us at 800-282-8497 toll-free.