Avoiding Bankruptcy: Non-Traditional Forms Of Debt Relief For Military Members

Sometimes, debt can be overwhelming, and there may seem to be no other way out but to file bankruptcy and start over. However, for many military members, this can mean the end of a military career. Most military career fields now require the member to obtain at least a "Secret" security clearance. A bankruptcy or credit problems can cost the member their security clearance, and ultimately, their career. There are a couple of non-traditional methods that military members can get help with debt and avoid a bankruptcy filing.

Military Relief Funds

Each active-duty branch of the military offers an emergency relief fund that active-duty service members may apply for. The requirements for one of these grants can be stringent, and money is typically earmarked to help servicemembers pay for housing, food, utilities and other necessities. While these funds are not meant to wipe out a service member's debt load, they can bridge the gap between paychecks to allow the service member and family to create a plan to take care of financial obligations.

For Guard and Reserve members, there are also assistance programs in each state. Guard members should contact their military unit, or National Guard headquarters in their state for more information. These programs also offer grants in amounts ranging from several hundred dollars to several thousand dollars, to help with emergency expenses, living expenses and even past-due accounts. Military Reserve members should contact their unit directly to get information on the assistance programs that are available to them.

Student Loan Grant Programs

Student loan debt can overwhelm an individual, and many service members may have student loan debt that was incurred before they joined the military and is not eligible for any loan repayment programs from the military. There are several options available to help service members pay off their student loan debt; these grant programs are offered by private organizations and are earmarked for military members only. A quick online search will yield several legitimate results; military members may also contact their unit of assignment for more information on available assistance.

Crowdfunding

There are several sites online that allow members to set up an account to take crowdfunding donations. All accounts must be verified to ensure that scammers are not allowed to take advantage of the kindness of strangers. However, these verification procedures do not require a credit check, so this is a great option for those who are looking to get debt assistance without relying on their credit. Once a member's account is verified, they can then set up a crowdfunding campaign. Many crowdfunding campaigns that are backed by a compelling story have raised the funds to help the individual recover from a bad situation.

Peer-to-Peer Lending

Peer-to-peer lending is another great way for military members to get debt help without further damaging their credit. P2P lending sites allow military members to be matched up with normal, everyday people who are willing to extend a loan to them. They can then use the loan to pay off debt; monthly payments are made to the lender just like a traditional loan. These loans can carry a higher interest rate than a traditional loan, but can be easier to obtain than a traditional loan.

For more information, contact attorneys such as Curtis A. Anderson, Attorney At Law.