When you are a veteran, the chances are very high that you are struggling with debt. As sad as it may seem, veteran or military families have higher rates to pay than regular civilian families – which means that their debt also tends to go through the roof. Plus, considering the frequent need for moving, it’s understandable why banks might not want to take any chances with you. This is why you might be into a great amount of debt.
Still, military or veteran families also have some perks that they can reap. Indeed, while keeping track of your spending and creating a budget might be a great way to get out of debt, there are still a variety of discounts that you can use. If you plan everything in a smart manner, you will be out of debt in no time.
- Budget Tracking
Debt reduction is not going to happen overnight. It’s a process that you will most likely hate, since it will cause you to “miss out” on some things that you love in life.
Therefore, if you’re in debt, try to create a budget for yourself – one that allows you to pay as much as possible from the loan. Bear in mind that while it may be tempting to pay the minimum amount, you should go for larger amounts every time you can.
If saying no dinner at a restaurant twice a week will help you get out of debt faster, then there’s no reason why you shouldn’t go for a home cooked meal instead.
- Consolidate Your Debts
If you have loans from different lenders, you are paying a different interest for each of them. Those interest rates combined will make you lose a lot of money in the long run.
However, on the 7th day, God invented the debt consolidation loan. Basically, with this loan, you borrow enough money to pay off your existent debts – only leaving you with your current one. This way, you will only have one interest rate to deal with.
Still, make sure that you shop long and hard for a good loan. If you opt for one that has a higher interest rate than all the little ones combined, then it’s clear that you won’t have made any investments. Negotiate the rates, and find the lowest ones.
- Take Advantage of Veteran Discounts
While these may not apply directly to loans, it will still help you save money. Depending on the state that you live in, you could pay less on transportation, access – or can get various freebies simply because you served your country. It may not seem like much now, but not paying $100 for that train ride might actually help you get rid of debt much faster.
Veteran or not, you need to remember that abstinence and budgeting are key. The phrase “If you don’t need it, don’t buy it” should be your motto. This will allow you to pay off your debt by focusing on what you need rather than what you want.