Members of the military run into unavoidable factors – constant relocation, financial inexperience and unemployment among spouses – that make them more vulnerable to falling into debt than civilian peers.
If your problem is confined to credit card debt, another debt consolidation option is to do a balance transfer to another credit card.
Several banks and card companies are offering 0% interest on credit cards for as long as 18 months.
The obvious drawback to this choice is that you lose the equity in your home, while taking on more debt.
There also is the matter of paying closing costs, which vary depending on the lender.
Banks and lenders dealing in VA loans are restricted by rules on how much they charge for closing costs.
There are two significant rules to consider before closing a VA loan: origination fee cost and VA funding fee.
The MDCL operates on the same premise as a regular debt consolidation loan: take out one loan to pay off all unsecured debts, such as credit cards, medical bills, payday loans, etc.
and make a single payment to one lender rather than multiple loan repayments to multiple creditors. That means you are refinancing your current loan for more than the amount owed and taking the difference in cash.
The VA is a guarantor for refinancing your loan, but the new loan value can’t exceed the appraised value of your home.
Also, there is a limit to how often you take out VA loans if you have trouble repaying them.
Lenders will take into account your income and credit score when determining your eligibility.