What are some good, military-friendly, debt consolidation companies?

1SG Private RallyPoint Member — Tue, 15 Dec 2020 18:40:46 -0500

Just learned about one of my Paratroopers is $13,000 in debt to about 8 different companies. AER won't help due to amount and they give money for loan repayment/consolidation. We are sending him to budgeting classes and JAGbut he has a lot of expenses besides his debts so he's underwater pretty bad. Only other options I can think of is debt consolidation or bankruptcy.

Response by Cpl Vic Burk made Dec 15 at 2020 6:47 PM

Cpl Vic Burk — Tue, 15 Dec 2020 18:47:07 -0500

Navy Federal Credit Union. I got myself into some deep debt about thirty years ago and got a consolidation loan from NFCU (and for more than your paratrooper) . I had to itemize every debt and the amount. The checks were made out to the creditors. I learned how dangerous charge cards are!

Response by CPT Private RallyPoint Member made Dec 15 at 2020 6:51 PM

CPT Private RallyPoint Member — Tue, 15 Dec 2020 18:51:53 -0500

$13k while not a small sum, but is manageable if the soldier doesn't have dependents and just hunkers down in the barracks and eats at the DFAC. I'm not saying that it will be fun, but $13K isn't out of control yet considering he has an employer that will feed, give him clothes, and shelter him outside of all payments to him.

Response by SSG Dale London made Dec 17 at 2020 12:11 AM

SSG Dale London — Thu, 17 Dec 2020 00:11:56 -0500

I've been a member of Navy Federal Credit Union since 1986 and have never been disappointed with them. There were a couple of times when they really saved my bacon. I'll be a member of NFCU until the roll is called up yonder.

Response by MSG Private RallyPoint Member made Dec 17 at 2020 7:38 AM

MSG Private RallyPoint Member — Thu, 17 Dec 2020 07:38:26 -0500

Check out Dave Ramsey’s Financial Peace University website for lots of proven info and resources, many of which are free

Response by CPT Lawrence Cable made Dec 17 at 2020 7:39 AM

CPT Lawrence Cable — Thu, 17 Dec 2020 07:39:13 -0500

Let me be the naysayer on debt consolidation. It doesn't reduce your debt and normally doesn't reduce your overall interest payments since you are just paying them off over a longer period. I work in an industry that is very economically sensitive, so I've seen a lot of people try this route to try to compensate for income lose or mismanagement. Generally I see it being unsuccessful. If that soldier has a lot of expenses, child support or family as an example, that eats up a lot of his income, I would suggest he talk to a Bankruptcy attorney. Yes, he will take a credit score hit, but if he is late or not making payments, it probably sucks already and it won't make that worse. If will allow him to rebuilt it if he is reasonably careful.

Response by 1SG Private RallyPoint Member made Dec 17 at 2020 10:26 PM

1SG Private RallyPoint Member — Thu, 17 Dec 2020 22:26:20 -0500

Thank you all for the help. My Paratrooper went with Navy Federal freed up $300 for his budget by consolidating. It took a huge load of his plate. Not out of the woods, but a step in the right direction.