Military members face many different issues than their civilian counterparts, so it doesn’t make a lot of sense to assume that military debt is exactly the same as civilian debt. Military members collect debt for different reasons than civilian members, however, so paying off military debt is different too.
If you’re like many military members, credit cards, auto loans, mortgage payments and personal loans, might take up over half of your basic pay. Fortunately, there are several different ways to reduce your monthly military debt bills without making major sacrifices.
To start, see how much additional cash you can free up from other areas of your budget. Look at reducing utility bills or cutting back on extras like cell phone minutes. Use this money to pay off any loans with small balances. Making small changes to your lifestyle can usually free up enough cash to get loans with small balances remaining paid off quickly.
Next, it’s time to make a plan to pay off your loans with high balances. While you should take the money that you were paying towards your smaller loans and apply it to your larger loans, odds are this will not make much of a dent in your overall loan balance.
Instead, plan to make big payments on these loans from the money you are able to save during a deployment, from bonus pay, and/or from the increase in pay you will receive when you make the next rank. Rather than spend all of this money, use it to make large payments towards your large debts. By using these strategies together, a military member can get their debt paid off much faster than he or she otherwise would have.