Americans are no stranger to debt, and veterans run into debt at a much higher rate than civilians. A 2019 survey by the National Foundation for Credit Counseling found that 34% of military personnel missed their bills on time and 11% said they had debt in collections.
Support for indebted veterinarians has become an even more pressing issue because of the impact of COVID-19. However, President Biden signed an executive order delaying the Department of Veterans Affairs’ debt collection from veterans. This will help two million veterans maintain financial stability in times of uncertainty, according to the White House.
To help veterinarians in debt, various grants and programs offer assistance and get veterans back on their feet. Here are some options that you should consider when you or a loved one is in need of debt relief.
Financial support for veterinarians in debt
The last thing a veteran has to worry about is growing debt. Several financial assistance programs are available for veterans in need. Here are some options for veterans in need of debt relief.
Debt Consolidation For VA Home Owners
Service members or veterans with a VA home loan can take out a military debt consolidation loan to refinance their mortgage and get money to pay off debts. By consolidating debt into one payment through Debt Consolidation, veterans only have to worry about one payment and potentially may pay less interest. When you consider that the average APR for credit cards is 17.3%, it could mean huge savings and faster debt repayment.
Here is an example. For example, let’s say a veteran has a $ 200,000 VA home loan for a $ 300,000 home. With a military debt consolidation loan, 100% of the equity of the home can be borrowed. This would free up $ 100,000 in cash by refinancing that money and using it to pay off existing debt by consolidating it into the home mortgage.
Non-profit loan advice
Not-for-profit loan counseling for indebted veterinarians can help veterans evaluate finances and learn how to manage debt. Loan counseling can simplify the repayment process and make it easier for veterans to pay off debts. With a credit counseling service, indebted veterinarians can benefit from the following advantages:
- Help with basic budgeting skills
- Organize a debt management plan to pay off debts
- Develop short and long term financial goals
- Help veterans get a copy of their credit report and score
- Bankruptcy advice
- Housing advice and preparation for home ownership
- Free teaching materials and workshops
There are more than 45,000 charities, churches, and nonprofits that fund indebted veterinarians and their families. These programs are designed to assist active military, veterans, and military families with housing, food, transportation, and medical issues. Veterans and service members not only deal with debt, but also mental, physical, and emotional struggles due to their service.
Grants are non-repayable funds that a party, usually a government agency, company, foundation, or trust, grants to a recipient. Debt veterans have access to a number of debt relief grants.
USA Cares, a nonprofit whose mission it is to provide emergency financial aid to military veterans after September 11th, has responded to over 100,000 requests for financial aid in the millions. The goal of this organization is to help veterinarians and active military personnel in times of need by providing financial assistance and legal assistance.
VFW Unmet Needs Program
The unmet needs program is run by the Veterans of Foreign Wars organization and provides grants and referrals to other organizations for active duty members, veterans, and their immediate families to help with basic financial needs. The program provides grants of up to $ 1,500 and pays the creditor directly.
The PenFed Foundation
The PenFed Foundation is a nonprofit that donated $ 6.9 million to disabled veterans and their carers. This foundation provides emergency financial assistance to wounded, sick, or injured veterans after September 11th to cover the following payments:
- rental fee
- Car loan / leasing
- Basic utilities
Help is available for indebted veterinarians
Vets who are in debt do not have to fight their way through difficulties alone. Organizations, tools, and resources are available for people in financial difficulties. Find out which program suits your needs, weigh your options, and start getting rid of your debt for good.