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The Ins And Outs Of Military Debt Consolidation Loans

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Posted in Credit Cards

Military debt consolidation loans are available to people, who are working with government, military services and their respective family members. The terms and conditions applied to a military loan are just like any standard debt consolidation loan. Many on line companies like Debtconsolidation123 and some of the agencies like Military Debt Management Services, Military Debt Management Agency, and AAFES offer loan military debt consolidation programs and assist the debtors to sail through the troubled water. Military Debt consolidation loan can make your life a whole lot easier and can help you to save some bucks in your wallet as well.

How Does it Work?

With a debt consolidation loan, you can merge all your existing debts to a single loan or a monthly payment. The loan can be arranged to bridge the gap between the debtor and the creditor for a prolonged period of time and involves much lower interest rate. The military consolidation loan diminishes the monthly payments considerably as the interest rates become substantially less than the average rate of the previous loans and credit cards. There are two ways military debt consolidation loan can be obtained either by a home equity loan, availed by mortgaging the property or by transferring the current credit balance to a ‘0’ interest credit card.  By opting for Home equity loan tax consequences can be evaded to a great extent. However, if the borrower does not make the new debt consolidation loan payments on time the interest rate can shoot up drastically in future.

Eligibility Criteria for a Military Debt Consolidation Loan Plan

A robust credit score is essential, to attain a military debt consolidation loan. Income verification is also required to sanction this loan. There is hardly any doubt that with a military debt consolidation loan plan, debtors avail more viable loan terms and much secured financing.

Warning

Make sure while opting for a military debt consolidation service, that your monthly payment get at least 25% lower than what you are currently paying. The interest turns out to be higher and the loan terms become intricate when the consolidation loan is an unsecured one and consequently no collateral remains associated with it. However, a cosigner with a brilliant credit score can certainly assist you to avail a lower interest consolidation loan and can make the intricate loan terms much simpler.

Benefits of a Military Debt Consolidation Loan

There are multiple benefits reaped from Military Debt Consolidation Loan program. After consolidating you need to take care of only one payment instead of several ones with several due dates to several lenders. This is particularly beneficial for military members, as they don’t have to worry about missing payments because of deployments in future. Military debt consolidation can be used to replace credit card debts, personal loans and auto loan. With Military Debt Consolidation Loan the payment is set up on an automatic withdrawal. Therefore, you have the chance to save a lot of money by evading over the limit charges or late payment penalties which you might have accrued if you miss your credit card payments on time.

To summarize, the benefits of military consolidation loan are:
•    Prolonged period of term
•    Reduced interest rates
•    Affordable monthly payments
•    Single payment plan

Downsides

No matter, how beneficial debt consolidation loan is but it has some pitfalls as well.  After consolidating your current loans if you keep on borrowing loans, you will likely end up in a worse financial position than before and pile up your debt burden even more. Therefore, it’s imperative that you should pay off the debt consolidation loan before applying for any new credit.

Final Thoughts

The military debt consolidation loan can be a lifesaver to many debt ridden military families. This one payment gateway can relieve a huge debt load and can restore the consumer’s peace of mind in the best possible way.

This is a guest post by Kevin Craig who is a financial writer associated with various finance related Communities. He has been providing advice on debt relief since 2007. With his advice, many people are now living a debt free life.You can get in touch with him at kevin.craig672@gmail.com