Debt help for Military and Veteran

This is a compilation of debt help for Military and Veterans. This list includes details, links, and videos to help you gain information and access to these options in an easy to access manner. 

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Debt help for Military and Veteran

Companies that help

Military OneSource: is a program funded by the Department of Defense that provides educational resources and advice to service members and their families on a variety of topics, including debt solutions such as debt consolidation.


Debt Reduction Services: a nonprofit credit counseling agency, offers free credit and debt counseling to active duty military. You can start the process of debt consolidation through this company by speaking with one of their credit counselors.


 More Credit Counseling Options:

Military Debt Consolidation Loan (MDCL) / VA Consolidation Loan 

Having a VA Loan qualifies you for a Military Debt Consolidation Loan (MDCL), also known as a VA Consolidation Loan that can help you overcome financial difficulties. 

The MDCL operates on the same premise as a regular debt consolidation loan: take out one loan to pay off all unsecured debts, such as credit cards, medical bills, payday loans, etc. and make a single monthly payment to one lender rather than multiple loan repayments to multiple creditors.

Military Debt Consolidation Loans are considered “cash-out” loans. That means you are refinancing your current loan for more than the amount owed and taking the difference in cash. There are closing costs involved, which get subtracted from the final amount you receive.

Be aware that you must meet certain qualifications to help ensure that you can and will repay the loan. Lenders will take into account your income and credit score when determining your eligibility. You also need to realize that this process takes unsecured debt like credit cards and turns it into secured debt. This means your home is acting as collateral and you could lose it if you default on your mortgage.

Veteran’s Housing Benefit Program

VA housing assistance can help Veterans, service members, and their surviving spouses to buy a home or refinance a loan. We also offer benefits and services to help you build, improve, or keep your current home. Find out how to apply for and manage the Veterans housing assistance benefits you’ve earned.


Servicemembers Civil Relief Act

A United States federal law that protects soldiers, sailors, airmen, marines, coast guardsmen, and commissioned officers in the Public Health Service and National Oceanic and Atmospheric Administration from being sued while in active military service of their country and for up to a year after active duty, as well as U.S. citizens serving with allied military forces for the duration of a military conflict involving the United States.

Military Lending Act

The Military Lending Act (MLA) says that you can’t be charged an interest rate higher than 36% on most types of consumer loans and provides other significant rights.

The MLA applies to active-duty service members (including those on active Guard or active Reserve duty) and covered dependents.

Your rights under the MLA include:

  • A 36% interest cap.  You can’t be charged more than a 36% Military Annual Percentage Rate (MAPR), which includes the following costs in calculating your interest rate (with some exceptions):
    • Finance charges,
    • Credit insurance premiums or fees,
    • Add-on products sold in connection with the credit, and
    • Other fees like application or participation fees, with some exceptions.
  • No mandatory waivers of consumer protection laws. A creditor can’t require you to submit to mandatory arbitration or give up certain rights you have under State or Federal laws like the Servicemembers Civil Relief Act.
  • No mandatory allotments. A creditor can’t require you to create a voluntary military allotment in order to get the loan. An allotment is an automatic amount of money taken from your paycheck to pay back your loan.
  • No prepayment penalty. A creditor can’t charge a penalty if you pay back part – or all – of the loan early.