Debt Relief For Veterans

Veterans give so much to our country and deserve to have a fulfilling and financially stable life. However, the transition from active-duty military members to civilian life can be frustrating and veterans often face financial hardship once they leave active service. We know that some veterans need support and military debt relief options to overcome financial challenges. Thankfully, there are several debt relief programs available to help veterans. 

From debt consolidation to credit repair services and even bankruptcy, veterans can take advantage of various financial options to manage their debt effectively, even if they have a low credit score. 

Debt Consolidation

Debt consolidation for veterans is a strategy that rolls multiple unsecured debts into one personal loan or credit line, usually with a lower interest rate. For example, if you have been paying for your living expenses with your credit card until you find employment, it’s only normal that your credit card debt will get maxed out and you will need some card debt relief.

A debt consolidation loan combines debts from unsecured loans, such as credit cards or personal loans, into one loan, which gets paid off in monthly payments. Debt consolidation loans with a monthly payment plan often carry lower interest rates than credit cards, which means you can pay less in credit charges.

Debt Settlement

Debt settlement involves negotiating with creditors to pay a lump sum that is significantly lower than the total debt amount you owe. This approach can significantly eliminate your debt and offer assistance for veterans to avoid bankruptcy. 

How Does Debt Settlement Work?

A certified debt specialist like those at ClearOne Advantage will help you fully understand how debt settlement works, but the basics are: 

1. You start putting money into a dedicated savings account.  
2. Once enough money has been saved, your certified debt specialist negotiates on your behalf with your creditors to reduce your debt. 
3. Successful negotiations may be able to lead to significant personal finance savings, sometimes reducing debt by up to 50%. 
4. Once an agreement has been reached, the money available in your dedicated savings account is used to pay the settlement, as simple as that! 
   

When is Debt Settlement a Good Option?

Debt settlement may be a good option for veterans with significant debt who want to avoid bankruptcy. Our debt relief solutions are designed to offer the best financial hardship assistance while avoiding the consequences of bankruptcy. While debt settlement can impact your credit score, it is usually less severe than bankruptcy. 

Organizations such as the Veterans of Foreign Wars (VFW), American Legion, and other veteran service organizations often provide resources and referrals to reputable debt settlement companies that understand the financial circumstances of veterans. 

Talk to one of our certified debt specialists today. We’ll explain your options and create a plan that fits your needs 

Bankruptcy

Bankruptcy is a legal process that provides a fresh start for individuals unable to repay their debts. There are two main types of personal bankruptcy: Chapter 7 and Chapter 13. Bankruptcies are filed in court, which then decides how much debt is forgiven and whether you have to liquidate any of your assets.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy involves liquidating non-exempt assets to pay off debt creditors, with most unsecured debts being discharged. Chapter 7 provides financial assistance, immediate relief, and is completed within a few months. During the bankruptcy process, an automatic stay prevents creditors from collecting, thus giving you peace of mind.

However, a bankruptcy remains on credit reports for ten years and impacts credit scores. Also, there are certain eligibility criteria to qualify for Chapter 7.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves creating a repayment plan to pay off debts over three to five years. Not all debts are repaid; the court decides which creditors get paid and whether they get repaid in full or in part.

An advantage offered by Chapter 13 is that veterans can keep their assets while repaying debts over time. Debts are reorganized into a manageable repayment plan, while an automatic stay prevents collections during repayment.

It typically takes a period of time from 3 to 5 years to complete the repayment plan, during which you must maintain financial discipline.

Filing for Chapter 13 remains on credit reports for seven years and can adversely affect certain aspects of your life, such as the ability to get a mortgage or a car loan.

VA Cash-Out Refinance

If you already have a VA loan on your home and have paid part of the equity, you can apply for a VA cash-out refinance loan. You cash out the equity you have already paid into your loan and use it to repay your unsecured debts.

Although this is meant as a veteran debt relief solution, you are turning unsecured debt like credit card debt and medical debts into secured debt, backed by your home collateral. If anything goes wrong and you can’t afford to repay your home mortgage, you risk foreclosure and losing your home.

A Partner Veterans Trust

We’ve helped thousands of veterans achieve their financial goals. Here’s why veterans trust ClearOne Advantage: 

• BBB A+ Rating
• TrustScore 4.8 based on 9,888 Trustpilot reviews
• Accredited member of the Association for Consumer Debt Relief (ACDR)

Our team is committed to serving veterans as part of our ClearOne Advantage Cares program, which supports the Wounded Warrior Project.  

Debt Relief for Veterans Is Available

Veterans often find civilian life challenging and with good reason. They are used to a way of living that is disciplined, controlled, and secure. Moving from the military to civilian life requires a major shift in their mental maps. Finding and keeping up with new employment and adjusting to civilian life can be time-consuming. Meanwhile, expenses such as medical and mental health bills may be piling up, impacting their financial status.

When veterans face debt, it’s good to know that help is available through financial solutions like military debt consolidation and debt settlement. Debt forgiveness programs are of great importance to homeless and disabled veterans struggling with bad credit. Such financial assistance programs offer a path to financial stability and help veterans and military service members save sufficient funds and rebuild their lives after service.

Debt settlement, in particular, offers a viable path to substantial debt reduction without the severe long-term impacts of bankruptcy. It can help veterans reduce their debt to more manageable levels, save funds, and regain their financial stability after the military.

We are Grateful for Veterans' Service

ClearOne Advantage is grateful for veterans' service and dedication to our country. Our certified debt specialists are always eager to find help for veterans and make the most of the debt relief settlement programs available to them. If you feel that debt has become a cause for concern, explore your options with a certified debt specialist today at 888-340-4697. Get a free savings estimate and a step-by-step introduction to all the debt relief options available to you!