Learn why veterans struggle with debt and how they can get relief.
Debt is a widespread issue for Americans, but for veterans and military families, it’s often more than just a temporary setback, it can be a chronic, compounding problem tied directly to their service.
The Debt Burden on Military Families
Military life comes with sacrifices that most civilians never have to consider. Long deployments, frequent relocations, and gaps in income after service can all contribute to financial instability. The severity of this situation is highlighted by the Military Family Advisory Network’s (MFAN) 2021 Military Family Support Programming Survey.
75.8% of military and veteran families have debt and they are…
Unable to Build Their Savings
51.2% have been unable to save in the last two years.
Unprepared for Emergencies
38.4% have less than $500 saved for emergencies.
Burdened by Financial Stress
80.7% are experiencing financial stress.
According to MFAN, the burden of debt isn’t just financial; it’s also deeply emotional, affecting mental health, stability, and long-term financial readiness.
These stats represent real families who may be worried about their next bill, putting off healthcare, or forced to make impossible decisions about necessities.
Why Are Veterans in Debt?
Here are seven common reasons veterans get into and struggle with debt:
- Frequent Moving Expenses
- Difficulty Finding a New Job
- Job or Income Loss
- Medical Bills
- The Rising Cost of Living
- Missing Bills During Deployment
- Delayed or Insufficient Benefits
7 Common Reasons Veterans Are in Debt
| Veteran Debt Triggers | How It Affects Veterans | Potential Solutions |
|---|---|---|
| Frequent Moving Expenses | Even with covered relocation, hidden incidental expenses (like temporary lodging, deposits, lost income, and vehicle shipping) add up quickly when you move every 2-3 years. Dual rents or tough home sales during transitions can also strain finances. | Military Relief Societies Debt Consolidation Options |
| Difficulty Finding a New Job | When veterans transition to civilian life, finding a job that truly fits their skills is tough. Often, military experience isn’t recognized, or there’s no clear civilian equivalent. This can lead to long unemployment or underemployment, quickly creating financial strain. | Career Services for Veterans |
| Job or Income Loss | Spouses of military members are often forced to leave their jobs during relocations, and veterans may face unexpected layoffs or contract work with inconsistent pay. Without a financial cushion, even a short gap in income can lead to credit card debt or personal loans. | Military Relief Societies Career Services for Veterans Debt Consolidation Options |
| Medical Bills | Even with VA healthcare, veterans may still face unaffordable medical costs. This is especially true if their conditions aren’t yet rated by the VA or if they need care outside of VA-approved facilities. Private health insurance can come with high premiums, copays, and deductibles that stack up quickly. | VA Financial Assistance Programs Debt Consolidation Options |
| The Rising Cost of Living | Rising inflation hits military and veteran families particularly hard. The cost of essentials, like groceries and housing, jumped over 5% in 2023. For families already on tight budgets, each price hike deepens their financial challenges. | Nonprofit Credit Counseling Budgeting and Financial Planning Debt Consolidation Options |
| Missing Bills During Deployment | Deployments are chaotic. Even with careful planning, it’s easy to miss a due date, especially for service members without reliable internet access or who are focused on mission-critical tasks. Missed payments can snowball into collections, late fees, and credit damage. | Nonprofit Credit Counseling Debt Consolidation Options |
| Delayed or Insufficient Benefits | While VA benefits are a lifeline for many, delays are common. According to the VA, the average processing time for disability claims is currently over 100 days. That’s more than three months that a veteran might go without the financial support they desperately need. Appeals can drag on even longer. | Military Relief Societies Debt Consolidation Options |
How Veterans Can Get Back on Track
Veterans and their families are incredibly resilient, but financial challenges can feel overwhelming without the right tools. Sometimes careful budgeting just isn’t enough. Fortunately, there are solutions for veterans to help reduce debt, restore stability, and rebuild confidence.
✅ Debt Consolidation Options
If you’re juggling multiple high-interest debts like credit cards, personal loans, or medical bills, debt consolidation options for veterans can offer immediate relief. Debt consolidation options combine your debts into one simplified monthly payment.
For many veterans, this approach is faster and more affordable than minimum payments or bankruptcy. It can free up cash flow, reduce stress, and help you get out of debt faster than other debt relief methods.
Benefits of consolidation options may include:
- Personalized guidance about the right solution for your debt
- Lower eligible monthly payments by 40% or more
- One manageable payment
- Avoiding bankruptcy
- Less emotional strain
- Get out of debt in 24 to 48 months
Debt consolidation options like those offered by Accredited Debt Relief offer a clear, compassionate path forward that addresses veterans immediate needs and protects their financial futures.
✅ Nonprofit Credit Counseling
Reputable organizations like the National Foundation for Credit Counseling (NFCC) provide personalized financial guidance. Their programs help veterans and military families review their full financial picture, create a budget, and understand all their repayment options.
✅ VA Financial Assistance Programs
The VA Debt Management Center offers solutions for veterans struggling with VA-related debts. These include extended payment plans, pauses on collections, and in some cases, debt forgiveness based on hardship.
✅ Military Relief Societies
Each military branch has nonprofit aid societies offering financial support in times of crisis. These include:
These programs can provide grants, interest-free loans, and emergency assistance, especially helpful for housing, utilities, or unexpected expenses.
Debt Solutions For Veterans
Veterans and military families face a unique and often invisible battle with debt. The structure of military life (constant moves, sudden changes, delayed benefits) makes it difficult to build savings or financial security. But acknowledging these challenges is the first step in solving them.
With targeted support and access to financial education and resources, we can help our nation’s heroes move from financial stress to financial strength.
Are you a veteran struggling with debt right now? We can help.
Request a consultation with us. It’s quick and free!
Accredited Debt Relief is not affiliated with, approved, sponsored, or endorsed by any state or federal government agency.
Sources:
- Military Family Advisory Network. (2021). Military Family Support Programming Survey Results. Retrieved from https://www.mfan.org/research/.
- U.S. Bureau of Labor Statistics. (2023). Consumer Price Index Summary. Retrieved from https://www.bls.gov/cpi/.
- U.S. Department of Veterans Affairs.Benefits and Services. Retrieved from https://www.va.gov/.