It is gratifying to note that the unemployment rate of veterans in the United States is fast declining. More veterans are being gainfully employed in the society.
The U.S. Bureau of Labor Statistics an organization of the United States government set up to gather statistical data of divers force reported recently that the jobless rate for all veterans also edged down over the year to 4.3 percent in 2017. Despite this decline in unemployment rates, more veterans and their families are finding it difficult to manage their debt.
A cursory look at what constitute these debts reveals factors such as financial naivety among some veterans and their families, constant redeployment to other locations and spouse unemployment status.
This article examines and identifies how veterans and their families can manage their debt more efficiently.
The misunderstanding of the VA loan by veterans is a clog in the wheel for getting veterans and their families stay debt free. For the avoidance of doubt, Bank makes the loan while VA guarantees only 25% and set the guidelines for what banks can charge
WHAT IS VA LOAN?
According to Wikipedia “A VA loan is a mortgage loan in the United States guaranteed by the United States Department of veteran affairs (VA). The program is for American veterans, military members currently serving in the US military, reservists and their surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction etc.”.
DEBT CONSOLIDATION FOR VETERANS.
Having a VA loan qualifies a veteran for a debt consolidation program administered by military debt consolidation loan (MDCL). The MDCL is similar to other debt consolidation loan where you obtain a loan from a lender to offset other unsecured loans while paying minimal interest.
A BALANCE TRANSFER IS ANOTHER OPTION FOR VETERANS TO USE IN MANAGING THEIR DEBT.
A balance transfer is a process whereby credit card debts are transferred to a new credit card. This is only allowed if your debts are confined to credit card debt.
Finally, debt management programs enable veterans to manage their debt profile. However, you will need to consult a nonprofit credit counseling agency to check your eligibility status.
It is important for veterans to avail themselves of opportunities to gain financial education in other to be empowered to effectively manage their debt and keep themselves and their families out of debt. Other avenues for helping veterans stay out of debt to include loan modification, repayment plan adjustment,
Privilege or special forbearance and foreclosure postponement.
Veterans are an integral part of the US society and economy and their financial welfare are as important. Veterans must, therefore, avail themselves the use of opportunities opened by the state to manage their debt and keep their loved ones free from debt.
Consulting A financial planning consultant or nonprofit credit counseling agent will better acquaint you with further details on how to get the best help.