Military service members accept the fact that they move every few years. Relocating to other assignments helps the military meet their needs, but moving can put a strain on a military family's finances. Sometimes, the strain can be bad enough to lead to questioning whether or not it's time to file bankruptcy. While those in the military have the same rights as civilians when it comes to bankruptcy laws, they should be careful in doing so and, instead, seek other ways of getting control of their finances. There is a solution: debt consolidation attorney services. Here's what you need to know if you are a service member and are struggling to make ends meet, particularly after a permanent change of station move.
Why you should avoid filing bankruptcy
The most important thing to consider is how a bankruptcy filing may affect your current security clearance or the ability to obtain a security clearance in the future, if necessary. When filling out the paperwork for a security clearance and mandatory updates, which is called a Form SF86, you'll need to answer questions regarding your finances, such as if you've ever been more than 90 days delinquent and if you've ever been bankrupt.
Important note: If, however, your reasons of falling behind on your finances were due to being deployed, you would be protected from the Service Member's Civil Relief Act if you file bankruptcy, which can be annotated on Form SF86.
Why you should choose debt consolidation
A debt consolidation loan is exactly what it sounds like. One loan is taken out to pay off all debts that are unsecured, such as credit cards and signature loans. Then, only one payment is necessary every month, which can make it easier to keep grasp of your finances as well, particularly during the mail delivery transition times that are part and parcel to permanent duty station changes and relocating your family. Having only one payment leads to another reason to choose debt consolidation: monthly automatic payment amounts are known instead of guesstimated. Knowing the exact amount of repayment that will be made on a monthly basis can help you prepare a budget and stick to it. The one key thing to keep in mind through all of this, of course, is to avoid racking up any more debt while you have an outstanding balance on your debt consolidation loan. Speak with a debt consolidation attorney for more information.
