If you are looking for a debt consolidation loan, you may have landed on some of those websites that are bedecked with the American flag and other military symbols, along with “thanks for your service” and praise for what “you have done for the country”. Don’t be fooled into thinking that companies that provide debt consolidation loans to the military offer specially low special interest rate or more favorable terms than would be available to people not in the Armed Forces.
This is just hype.
No matter what they want you to believe
While some of these military oriented sites would want you to believe you are getting a special deal because you’re in the Army, Navy and Marine Corps or Air Force, it’s just not true. The interest rate you will pay and terms will be given will be about the same as what you would get from a bank or credit union as just a regular consumer.
If you are in the military and need a debt consolidation loan, you do have a couple of the advantages. First, the companies that specialize in working with members of the military understand what life is like for you and in some cases may be willing to bend the rules a bit to match your special circumstances. Secondly, you may find it easier to get financing then your civilian counterparts because of the nature of your employer–the US government. But do keep in mind that loan companies are not charitable organizations and that you’ll have to treat a military debt consolidation loan obligation just as seriously as you would your service obligation.
Understanding debt consolidation
You can accomplish several important things through a military debt consolidation loan. First, it will make your bill paying simpler because you’ll need to write and mail only one check a month instead of having to write a number of checks in different amounts, each with different rates of interest and each due on different days of the month. This can be very complicated and you could easily skip one of your obligations, which would have an adverse effect on your credit rating. And a debt consolidation loan will usually have a lower interest rate than your current debts, making it possible for you to pay it off faster.
Other advantages of military debt consolidation
When you have to write only one check a month, it’s much easier to remember to write it. You’re most likely to stay current, which will have a very positive effect on your credit rating.
As noted above, a military bill consolidation loan is likely to have a lower interest rate and will give you more time to pay it off, so your monthly payment should be much less than the sum of the payments you are currently making.
Shop for a loan
Point your browser to “military debt consolidation” and you’ll find page after page of loan companies willing and anxious to loan you money. Don’t sign up with the first website you visit no matter how many US flags or service patches it displays. Make a note of its name and of its interest rates and payment terms and then go on to a second website. Write down its interest rates and payment terms and then go on to a third, fourth or even a fifth site to make sure you are getting the best deal possible. If possible, check out the company with the Better Business Bureau or its testimonials, that is favorable reviews from people who have gotten a military debt consolidation loan from the company.
If you do this, you should able to get a military debt consolidation loan that will leave you with some extra money every month and fewer bills to be worried about.