Most Americans have some sort of debt—whether it’s from a mortgage, student loan, car loan or credit cards, but a new study shows that military personnel, including those at Eglin Air Force Base in Western Florida, are growing debt faster than civilians. Military members with debt tend to have an average debt-to-income (DTI) ratio of 46.5%, which is about 10% higher than non-military consumers.
It was reported that 27% of service members carried more than $10,000 in debt compared to 16% of civilians. In addition, the study cited that more than 33% of military families responded that they had trouble meeting all their expenses each month and 20% had taken out loans.
There are several reasons some service members amass more debt than civilians:
- Salaries are reliable but not typically large, which means there may not be any extra left over after paying bills to save for an emergency expense.
- Spouses often can’t get jobs or advance in their careers easily due to the regular location moves.
- Frequent moves add additional expenses and often service members have trouble selling their homes on short notice so end up having to pay two mortgages for a while.
- Can obtain credit more easily than a lot of consumers due to the guaranteed income.
- Deployment can cause debt issues if payments get missed.
These are all good reasons why military personnel at Eglin AFB and other locations may be struggling with growing debt. But the good news is that there are strategies available to deal with the problem.
Which Debt Relief Solution Is Right for You?
The Certified Debt Consultants at Freedom Debt Relief can help you narrow down the options. Take charge of your financial future by calling 800-910-0065 today. Below is a sample of what may be available to you.
DIY Debt Management
This is one of the simplest ways to deal with debt. But you need to be disciplined. If you can stop using your cards and pay off more than the minimums each month, you’ll make headway with this method.
If you can show that you’re having a difficult time making payments, you may qualify for a debt management plan offered by a qualified credit counselor. Under these plans, qualified borrowers generally receive forgiveness of some fees and lower rates. A counselor can also help you set up a budget and organize your finances.
If you own a home and have good credit, you could take out a consolidation loan to pay off credit card debt. Although this will simplify your finances by consolidating many debts into one and may reduce the interest you’re paying, it does come with risks. It takes unsecured debt and transfers it to your house or car since you need to use one of those as collateral. Moreover, if you keep on using the same spending habits that got you into debt in the first place, you will simply end up with one more debt to pay off.
Chapter 7 bankruptcy offers a chance to discharge many types of unsecured debts like credit cards and start over financially. You can retain certain property through bankruptcy and some debts (taxes, student loans, child support) will not be discharged. A Chapter 7 bankruptcy will show on your credit file for 10 years.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Get Help Today
Millions of Americans—both civilian and military personnel—carry large debt burdens. For help finding the right solution for you, get in touch with Freedom Debt Relief today. Call 800-910-0065 and speak with one of our Certified Debt Consultants. They can explain your options and get you started on the road to becoming debt free.