Factors Contributing to Veterans' Debt

They return home with no job.

Isn't that traumatic? After enjoying a consistent income as a soldier, the transition to civilian life is challenging. Few have jobs lined up for them after service that they can easily function in. This creates a gap in employment, which causes bills to pile up since there is no income. Even if they qualify for jobs, it takes a while to access them, and in the meantime, debt is accruing for everyday living expenses such as utility bills, rent, and food.

A Veteran’s Moving Expenses

Finding a job is just the beginning of a veteran’s worries. Often, the family lived at the military location at the time of the most recent assignment. The armed forces offer relocation benefits, which sometimes don't fully cover the move, so with no cash to help fund the move, borrowing is the next option, which could make the veteran's debt problems more unmanageable.

New Living Costs The

During active service, the military provides the best for their soldiers and families—they have excellent support. It’s usual for veterans to face new living costs. Some benefits no longer apply, such as insurance and housing. And depending on where the veteran lives, the cost of food may be high if he doesn't live near a commissary to access affordable food. Living costs may appear minimal, but every penny adds up, especially so when a veteran is living on limited funds./p>

Disabilities As A veteran

Some soldiers leave the army with a disability that will affect them for life—that's the risk they face, even death. Whether they are struggling with mental or physical disabilities, it affects their ability to work and function normally. Physical challenges will hamper the veteran's ability to manage some job functions. Mental challenges such as PTSD will make it difficult to work in a stressful environment.

Some employers are willing to support veterans with needed accommodations, but disabilities can restrict earning power. Small incomes lead to more debt and make it hard to keep up with the cost of living.

Relying on Fixed Retirement Income

A veteran's desired lifestyle is supported by a fixed retirement income. This is given to cover living expenses but is never enough to support the veteran's desired lifestyle. If they don't take on a supplementary job, they might not have sufficient funds to cover their expenses.

Building Debt with Spouse Unemployment

Military assignments and relocations make it difficult for a veteran's spouse to hold a position for long, so the unemployment rate for veteran spouses is high, especially when the assignments are overseas. This results in military families living on one income since the veteran spouse has little or no option to help support the family financially. This situation can lead to veteran debt.

Debt Payment Options for Veterans

Deployment, relocation, and disabilities are just some of the unique factors that affect a veteran's earning power and can bring on debt. For those service members from any US military branch who need assistance in managing their debt repayment, check out the payoff options available and the best debt consolidation solution for veterans.

You don’t need to face financial difficulties alone when there is a team that understands your unique circumstances. A plan to consider is debt reduction, which aims to consolidate your debt into one payment. Multiple lines of credit—a credit card with a high-interest rate—take too much effort to keep track of. Let an expert negotiate on your behalf to manage what you owe by rolling everything into one.

Discuss your military standing with the debt repayment company assisting you, for there is a slew of options for veterans. For example, if you are buying a home, a veteran's financial assistance loan can be your ideal way to get excellent mortgage terms.