Serving in the military comes with serious responsibilities—and sometimes, serious financial stress. From relocation costs to family emergencies, it’s easy for credit card balances to pile up. If you’re on active duty and struggling with debt, you’re not alone. Several programs are designed to support service members with financial emergencies, budgeting help, and even legal protections.
Emergency Financial Aid from Military Relief Societies
If you’re on active duty and facing unexpected costs—like a medical bill, emergency travel, or a sudden housing issue—your service branch’s relief society may be able to help. These nonprofit programs offer interest-free loans, grants, and other forms of support for essential expenses.
You may qualify for help with:
- Rent or mortgage payments
- Utility bills
- Medical or dental expenses
- Emergency travel
- Childcare costs
- Vehicle repairs
Each branch of the military—and the Coast Guard—has its own relief organization:
- Army Emergency Relief (AER): Offers interest-free loans, grants, and scholarships for soldiers and their families.
- Coast Guard Mutual Assistance (CGMA): Offers interest-free loans, grants, and financial education to help Coast Guard members and their families manage emergency expenses, relocation costs, and unexpected bills.
- Navy-Marine Corps Relief Society (NMCRS): Provides loans and grants for essential needs, plus Quick Assist Loans (up to $1,000) and education support.
- Air Force Aid Society (AFAS): Supports Air Force and Space Force members with emergency aid and community programs, including help with housing and medical expenses.
You can usually apply online or through your local office. These programs are designed to reduce financial stress so you can stay focused on your mission and your family.
Free Financial Counseling and Budget Support
If you’re feeling overwhelmed by bills or unsure how to manage your money, free help is available through Military OneSource. This Department of Defense-funded service is open to all active-duty service members and their immediate families.
Military OneSource offers:
- 24/7 access to confidential financial counseling
- Help creating a budget or money plan
- Guidance on managing debt or improving savings
- Referrals to military-friendly support services
You can speak with a trained financial consultant by phone, online chat, or in person. This kind of one-on-one support can make it easier to understand your options and feel more in control of your finances.
Legal Protections Under the SCRA
If you opened a credit card or took out a loan before entering active duty, you may qualify for protections under the Servicemembers Civil Relief Act (SCRA). This federal law helps reduce financial burdens for active-duty military members.
Key protections include:
- Interest rate cap: Your credit card company must lower your interest rate to 6% on eligible pre-service debt
- No penalties for using your rights: Lenders can’t take negative action against you for requesting this benefit
- Court protections: If you’re sued while on active duty, the court may delay the case until you can participate
To request the interest rate reduction, send your credit card issuer a written request along with a copy of your military orders. These protections can make it easier to manage debt, especially during deployment or other transitions.
Other Options to Consider Carefully
If you’re carrying high credit card balances and struggling to keep up with payments, you might want to explore other forms of debt relief. These approaches aren’t one-size-fits-all, and each comes with pros and cons. Talking to a financial counselor—like those available through Military OneSource—can help you figure out what’s right for your situation.
Here are a few common options:
- Debt Consolidation
This involves taking out a new loan to pay off multiple debts, ideally with a lower interest rate. It can make payments more manageable by combining everything into one monthly bill. However, you’ll need to qualify for the new loan, and there may be fees or risks depending on the lender. - Debt Management Plans (DMPs)
Offered by nonprofit credit counseling agencies, a DMP helps you create a structured repayment plan. The agency may be able to negotiate lower interest rates or waived fees from creditors. You’ll make a single monthly payment to the agency, which then pays your creditors. These plans typically take three to five years to complete. - Debt Settlement
This approach involves negotiating with creditors to settle your debt for less than what you owe. It’s usually handled by a settlement company, and results can vary. It may lower your total debt, but it also carries credit score risks, potential tax consequences, and fees.
None of these options erase debt overnight. Each one should be evaluated carefully based on your income, goals, and ability to repay. Professional guidance can help you avoid scams and make informed choices.
Final Thoughts
Credit card debt can add stress to an already demanding lifestyle—but help is available. Whether you’re dealing with a temporary hardship or longer-term financial pressure, you don’t have to face it alone.
Start by connecting with your branch’s relief society or a Military OneSource financial counselor. Taking that first step can help you understand your options and begin easing the strain on your budget and your peace of mind.
