Veterans and service members have special laws to help them stay out of debt and allow them to focus on their duties. For example, active duty service members cannot pay more than 6 percent interest on credit cards, can cancel their leases without penalty and, in most cases, cannot have their property foreclosed upon.
Still, outstanding debt remains a problem for veterans and active-duty personnel, even more so than for the typical American. The main goal of anyone in debt should be to pay down the total balances, however slowly, and avoid incurring further debt.
Like civilians, veterans have several options available to help them decrease their debt loads.
Debt consolidation is one of the most popular choices because it combines loans into a single payment and can reduce interest rates. Veterans can take on consolidated loans backed by the VA to receive better lending terms and lower interest rates.
Another common option for veterans and civilians alike is debt settlement, which can reduce the amount of money owed, potentially saving debtors thousands of dollars. Veterans may also be able to settle student loans and mortgages tied to the Department of Veterans Affairs (VA).