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Military Debt Consolidation Loans

Does the amount of debt you carry have you facing an uphill climb, the likes of which you haven’t seen since boot camp? As an active-duty service member in the armed forces — or someone who is career-retired — Omni Financial is ready and willing to share the load so you can get back on a much flatter road. With a military debt consolidation loan, we can help you get your finances under control so they’re no longer weighing you down and get your credit score to higher ground. We’ve been doing this, and so much more for our military community, responsibly for over 50+ years and counting. And as said by many of our family of customers, we say yes, when many conventional banks say no.

What is a military debt consolidation loan?

If you have any familiarity with debt consolidation for civilians, then you probably already have a general idea of what a military debt consolidation loan is and what it’s all about at its essence. A military debt consolidation loan is a financial tool that allows you to pay off outstanding bills more conveniently since they’re rolled into one.

There is little difference between a debt consolidation loan from a credit union or any other traditional lender versus a military debt consolidation loan from a military installment loan lender such as Omni Financial. The primary difference is when you deal with organizations that specialize in helping the military, they will have a better understanding of the challenges you face and communicate in a language you are used to. A military debt consolidation loan is a debt management program geared toward those who served or currently serve in one of the five military branches within the United States: The Coast Guard, Army, Marines, Navy and Air Force.

Credit card debt, outstanding medical bills, or other forms of unsecured debt — can be very challenging to overcome and can even prevent you and your family from taking advantage of certain life milestones, like getting a mortgage from a home lender. That’s because overdue debt can damage your credit score. The proceeds from a military debt consolidation loan through Omni Financial may enable you to take care of those debts at once through a more manageable monthly payment plan, freeing you from the burdensome debt load that might be weighing you down.

How do military debt consolidation loans work?

Military debt consolidation loans work pretty much like any standard personal or installment loan, except instead of using the money to buy a particular product or service, the funds go towards any bills that remain outstanding. You then pay back the loan, with interest, to the entity that consolidated the debt on your behalf.

Here’s an example. Suppose that you have several bills (e.g. car payment, credit card debt, student loan, etc.) that combined would cost you $5,000 to $7,000. That’s no chump change. All these debts can cost you thousands of dollars which can take over a number of years to manage and pay off. For example, a $5000 credit card balance may end up costing you close to $12,000 in total and over 7 years to pay off. And once you include all the late fees, interest rate and other charges, the cost total increases even more.

With the assistance of a military debt consolidation lender and assuming you’re approved (which we’ll get into later) you receive the appropriate amount of funding that allows you to pay off your creditors in full. You then repay the military debt consolidation lender. This gives you the flexibility, convenience, and simplicity to potentially lower your total monthly outlays, which may save you thousands of dollars.

That’s the long and short of how military debt consolidation loans work. Overall, they’re pretty straightforward and can be beneficial to use. Did you know also that potentially thousands of dollars can be saved with an Omni fixed loan when compared to a credit card utilization?

Who is eligible for military debt consolidation loans with Omni Financial?

Generally speaking, so long as you presently serve in the armed forces — or did and are now career retired (20+ years), you can apply for a military debt consolidation loan with Omni Financial.

Trust is very important to you and because it’s important to you, we take trust very seriously at Omni Financial. Many of our staff are former active-duty members themselves, they have been in your shoes they understand the unique lifestyle of a military life. When you work with us, please know that you can count on us to be upfront, clear and transparent about what is involved with your military debt consolidation loan need or any other installment loan need you may acquire from us. With Omni Financial at your side, we’ll help you get that credit score back up with a monthly payment plan that works for you.

What are the benefits of military debt consolidation loans?

If you’ve ever paid off an ongoing expense, like a car loan or a VA loan, you know how spectacular it feels to be out from under the obligation of paying your creditors and aggressive debt collection agencies. Quite frankly, the feeling is priceless knowing you have more money to use as you wish.

That, more than anything else, is perhaps the biggest benefit of debt consolidation. You’re no longer beholden to multiple creditors and can deal with just one.

But the advantages don’t stop there, others include:

Highly competitive rates

Former or current military members like you may be able to get a lower interest rate through debt consolidation than you would by paying off credit card debt directly with the card provider(s). There are closing costs with debt consolidation loans, but those from military debt consolidation loans may be more affordable than what you’d see as a civilian.

That’s the type of debt relief that you want and may receive by choosing Omni Financial as your preferred lender. Omni Financial makes debt management simple.

Turn one too many bills into one

It can be overwhelming as a borrower to pay off multiple creditors all at the same time, especially given your busy schedule and limited time. That’s taken care of by going through Omni Financial. We do the heavy lifting by streamlining your debts so all you have to pay off is the debt consolidation loan itself.

Pay less, get more

In light of the fact that closing costs and interest rates are typically lower with a military debt consolidation loan, the overall amount that you owe may also be less through a military debt consolidation loan. This gives you more purchasing power for other expenses, or you can utilize your savings as a buffer for financial emergencies.

While Omni Financial does not offer them, it’s worth noting that a VA loan also has the same advantages when it comes to affordability, like no closing costs.

Strengthen your credit score

Paying off your bills on or before their due date is critical to maintaining a good credit score. However, based on a 2019 poll from the National Foundation for Credit Counseling, this is something that a number of service members struggle with from time to time. More than one-third (34%) of active-duty members surveyed said they frequently missed these deadlines, up from 16% in 2014 when a similar survey was completed. Nearly as many spouses and partners of active-duty military — 29% — said they also neglected to pay their bills by their prescribed due date.

What’s more, 11% of respondents said some of their payments were so far in arrears that they were getting calls from debt collection agencies. That’s up from 3% who indicated as much in the 2014 National Foundation for Credit Counseling survey.

At Omni Financial, we have a wide range of repayment options. This means that if a certain monthly payment plan does not work for you, we’ll do everything we can to set up a system that does. The consistency with which you pay off the loan gives you the added fuel you need to power your credit score to higher territory. This type of flexible debt management can really pay dividends, so long as you commit to being timelier about your finances. Before you know it, your credit score will be right back where you want it to be.

Eligibility is still possible despite a bad credit history

Speaking of which, since your credit score is one of the measures lenders go by during approval, you may be hesitant to even bother applying if your credit score is less than stellar. Don’t be. At Omni Financial, we don’t use a single metric for every person that applies, whether for a debt consolidation loan or basic personal loan. We examine each application individually and in context with other factors that may be relevant to your unique situation. After all, each borrower is an individual, so it only makes sense for us to apply the same principle to approval.

From debt relief to flexibility, as you have seen in the sections above, the variety of advantages that derive from debt consolidation loans are voluminous. You may wonder, however, if there are any disadvantages. In the spirit of full disclosure, there are a handful, depending on what your situation is in terms of finances. In summary however, the main drawback is apparent when a consolidation is completed then a balance is run back up again with the debt one may have had, making the financial situation back where it originally was or much worse.

While there are many reasons to why you should choose Omni Financial for debt consolidation, here is just one reason why: while of course you’re the one who is ultimately responsible for paying off the loan on time, we want to work with you to put you in a position to succeed financially and will aim to do that by establishing a monthly payment plan that is sustainable and customized to your capabilities and overall goals.

How Omni Financial can help every step of the way

As someone who has served the United States of America with honor and distinction, you shouldn’t be saddled with debt, whether you’re still in the service or are now retired. Omni Financial can help you manage your financial situation with a military debt consolidation loan. If the amount you owe is $5,000, $7,000 or even $10,000, your Omni Financial teams to help you get your financial matters in order.

For more information on debt relief or our other products and services, contact us today or apply for a loan right now.