Posted on August 26, 2009 at 11:50 pm  Military servicemen do not receive high salaries and to augment financial needs many of them fall into the payday loan trap. Payday loans are credit offered by lenders to anybody who has a job and a checking account. The borrower writes a check or signs an electronic agreement which has the future paycheck as the security. It is not the paycheck that the lenders are after but the interest that the unpaid loans accumulate. The longer the loans are extended, the higher the interest rates, and the better for the lenders.Share your thoughts on what debt relief options best suit military personnel. Is filling bankruptcy (since it's government sponsored) good or bad for the debt laden military personnel?

Posted on August 27, 2009 at 12:07 am Bankruptcy does not have to be the primary debt relief solution for military personnel deep in debt - it really depends on what other types of debt the personnel have. Not just payday loans.Plus to aid personnel that were called to active duty during the Operation Iraqi Freedom, President George Bush, signed the Service members Civil Relief Act of 2004. It is the new and improved version of the 1940 Soldiers & Sailors Civil Relief Act - in which loans and payment obligations incurred prior to service, especially credit card payments, have a 6% interest limit, and at the completion of military service, payment obligations that exceed 6% interest is exempted.

Posted on August 27, 2009 at 12:59 am If the military personnel really need a fresh start - and if credit counseling or debt settlement were found to be not helpful to their situation - then bankruptcy may be is the best debt relief solution for military personnel deep in debt.Bankruptcy can protect the military personnel from creditor/collection calls via the automatic stay. It can halt foreclosure and eviction temporarily.But then again, according to that act mentioned above: a service member’s family that is paying a $1200 rental or less, is protected from eviction. An eviction requires a court order. Also, an active service member can terminate a pending lease if he/she is to be reassigned to a new location for 90 days or more.

Posted on August 27, 2009 at 1:05 am Another question to ask is:If debt settlement or credit counseling has been chosen by the military personnel as the right debt relief solution for him/her - does he/she need to report this to his supervisor? The answer is yes. Many debt settlement companies, before they enroll a military personnel, require that they first see their immediate superior to obtain security clearance.

Posted on August 27, 2009 at 1:20 am If debt settlement or credit counseling has been chosen by the military personnel as the right debt relief solution for him/her - does he/she need to report this to his supervisor?I agree. Not only do settlement companies require it but it's also the responsible and ethical thing to do because some of these military personnel have access to facilities and sensitive/classified information. Informing their commanding officer of their financial difficulties mightd cost them their access pass, as they may be excused or excluded from receiving privileged information/access to high/top level security operations (ex: special operations.)

Posted on August 27, 2009 at 1:38 am Debt relief for military personnel:Credit counseling (Debt Management Plan) - for debt amounts less than $10,000 and with high interest rates. What the program focuses on is the reduction of these interest rates.Debt Settlement - for debt amounts that are more than $10,000 and past due account status.If a military personnel is interested in a free consultation, destroydebt.com offers just that, just fill out a form.

Posted on August 27, 2009 at 8:19 pm Debt relief for military personnel: quite an intriguing topic I must say....Are they allowed to get loans? Like debt consolidation loans? To pay off their debts?

Posted on August 28, 2009 at 1:16 am From what I am aware of, some loan companies, particularly those that offer payday loans, do not admit or qualify military personnel to avail of the loans that they offer.It may be safe to assume, then, that debt consolidation is not a viable option for debt relief for military personnel. Although I may be wrong.

Posted on October 1, 2009 at 12:16 am Payday loans are never a good option. Neither would bankruptcy be. Instead, it is advisable to try personal Military Loans from lenders like Omni financial if the amount is not too big! They fit well for the military and army personnel as an alternative to commercial personal loans from banking institutes.