There are a lot of best debt consolidation loans for veterans in the United States. Struggling out of debt can be difficult as a veteran, whether a civilian or military. Many factors can cause money issues and get you into debt. You might result to taking payday loans.
Debt consolidation is a method used to simplify debt owed to creditors to enable you to pay at a lower interest or pay less.
We will look at the best debt consolidation loans for veterans.
Best Debt Consolidation Loans For Veterans
Here are the best debt consolidation loans for veterans. There are government debt consolidation loans for veterans and non-government debt consolidation options for veterans.
Government Debt Consolidation For Veterans
Let’s look at the government debt consolidation for veterans first.
1. VA Loans
VA Loans are specialized veterans home loans provided by private lenders, such as mortgage companies and banks, backed by the government.
What the VA loans do to guarantee a portion of the loan that makes a lender give you a loan in favorable terms than what you might initially have.
VA loan doesn’t directly help you with consolidation, rather it makes you eligible for MDCL and IRRRL loans.
2. Military Debt Consolidation Loans (MDCL)
A VA home loan makes you eligible for Military Debt Consolidation Loan (MDCL). The MDCL loan is a home equity loan for veterans that stands as an intermediary borrower between you and the equity built up in your home.
3. Interest Rate Reduction Refinance Loan (IRRRL)
The IRRRL called the Streamline Refinance Loan, is a debt consolidation for veterans provided by the Department of Veterans Affairs that helps refinance an existing VA loan and allows you to obtain a loan at a lower rate.
4. Leave No Veteran Behind (LNVB)
The national 501(c)3 non-profit organization code offers educational employment services to veterans with economic hardship. A part of LNVB helps to provide retroactive scholarships to settle student loans of veterans that have completed a form of higher education that wasn’t fully settled by veterans’ educational programs.
LNVB helps veterans to find employment opportunities.
5. Debt Consolidation Loans With Specialized Terms
This is one of the best debt consolidation loans for veterans, specifically for those that want to be homeowners. They offer specialized financial assistance for credit counseling and debt relief.
You can partner with VA Financial and receive up to $40,000 to repay unsecured debt at a lower interest rate. You can apply whether as an active or retired service member.
Consolidated Credit offers a waives program for veteran and their families.
6. Non-Government Debt Consolidation For Veterans
The fact that the government provided debt consolidation for veterans doesn’t make it the best option. There are non-governmental debt consolidations for veterans.
Your financial situation detects which non-government debt consolidation options to go for. The two smartest ways are personal loans and balance transfer cards.
If you want to pay off a large debt over an extended period, the best option is a personal loan. The balance transfer is best if you want to pay off your debt within a few months to two years.
When choosing a personal loan, consider the interest rates, including origination fees. Also, you can try out some credit repair companies for debt consolidation. A credit repair company helps to raise your credit score to help you get low at good rates.
You can consult credit counseling companies that help you provide professional experience during difficult financial situations.
Military Debt Consolidation Loan
When military personnel or member of the military encounter a financial challenge, one of the ways to consolidate is via a VA loan.
Having a VA loan at home qualifies you to get a Military Debt Consolidation Loan (MDCL) that helps you overcome financial difficulties and helps you with loans to settle unsecured debts, such as medical bills, payday loans, and credit cards.
Military Debt Consolidation Loans are called cash-out loans because they help to refinance your current loan more than the amount you owe and take the difference in cash. Also, it comes with closing costs that are subtracted from the amount you receive.
A major benefit of the MDCL is that it allows you to pay a loan at a lower interest rate and closing costs than when using credit cards. Also, you pay a lower interest rate than a civilian.
MDCL provides a range of repayment options that can spread over 10, 15, and even 30 years. The disadvantage of this loan is that you lose the equity of your home when you continue to take more debt.
The obvious drawback to this choice is that you lose the equity in your home while taking on more debt.
Best Personal Loans For Veterans With Bad Credit
Here are some of the best personal loans for veterans with bad credit
1. BadCreditLoans.com
BadCreditLoans.com offers one of the best personal loans for veterans with bad credit ranging from $500 to $10,000. It connects you with a lender. It is simple and funding is quick. You get funded within 24 hours business days once approved.
- Loan term: 3 to 60 months
- Interest rate: 99% – 35.99%
2. CashUSA.com
CashUSA.com is one of the best personal loans for veterans with bad credit. You can get loans from $500 to $10,000. The turnaround is within minutes, and the funds are sent directly to your bank account. You can use the loan for any purpose.
- Loan term: 3 to 72 months
- Interest rate: 99% – 35.99%
3. PersonalLoans.com
This is another loan platform that offers personal loans to veterans with bad credit ranging from $500 to $35,000. You can use the loan for any purpose, and the turnaround period is fast. You get funded within 24 hours after being approved.
- Loan term: 3 to 72 months
- Interest rate: 99% – 35.99%
Military-Focused Personal Loans For Veterans With Bad Credit
Below are the military focused personal loans for veterans with bad credits.
Navy Federal Credit Union membership can be accessed by active duty members of the Navy, Air Force, Army, Marine Corps, Coast Guard, DoD Officer Candidate/ROTC, Air National Guard, Delayed Entry Program (DEP), DoD Reservists, including associated veterans, annuitants, and retirees.
This union provides one of the best personal loans, such as; home loans, auto loans, banking services, and credit cards.
5. USAA
The USAA provides personal loans for active and former members of the military and family members, including midshipmen and cadets. Also, USAA provides financial and insurance products that help cover aspects of life such as auto, renters, and life insurance. USAA offers an investment account that allows you to invest for your future.
Conclusion
Before taking a debt consolidation loan or personal loan, read the terms and conditions. When choosing a personal loan, consider the interest, origination fee, and terms of payment.
