Servicemembers Civil Relief Act

[Laura1773]

Hi,

My husband is currently active duty and deployed. Does anyone know how to use the service? I would like to cut the interest on our morgage and his car payment (since he is not even driving it). Has anyone ever used this? Any information will help!

*Also- is it just for accounts in his name or in mine as well?

Thanks!

[KennyB]

I did this last year. Very worth it too. I am stuck with an ARM and my interest rate went through the roof. It maxed out at 13.85%. With the SSRA, they capped the rate at 6%. Our pyment went from almost $800 to right at $401. Also, I was behind and they took away all of the late charges, and they would do lawyer fees also, if it goes that far. PM me if you have questions.

[gunsgirl]

for the SSCRA - you need a copy of his orders and a POA-
got that?

then you will need to call each creditor- find out how each of them will allow use of the act.
it will lower the interest rate to 6% for current balances- car loan, mortgage credit cards - BUT it will not be used for new balances and depending on the credit card co you will get charged 6% for the previous balance and the reg rate for new charges.
it will apply to account in joint ownership or ones in just his name.

you can google the SSCRA for more information

[itsalwaysme]

Navy Federal will not honor this act unfortunately. We had one card lower our interest rate to 6% for the entire time he's on active duty - not just deployed! There is also no monthly payment on the card, they waive any late fees, and they dont charge the $7 fee to pay online!

All the accounts we've used it for have lowered our interest rate to 6% even if we used the card while he was deployed!

[KennyB]

I also wanted to add, your mortgage or car payment has to be financed BEFORE going active duty. It can't be something that you bought AFTER going active duty. I am pretty sure of that, but check it out for yourself.

You also will probably have to submit a hardship letter to let them know the situation along with a list of everything you pay out a month. It was a pain, but I am so glad that it helped us.

[ait0shi]

Originally Posted by grrrjennigrrr Navy Federal will not honor this act unfortunately. We had one card lower our interest rate to 6% for the entire time he's on active duty - not just deployed! There is also no monthly payment on the card, they waive any late fees, and they dont charge the $7 fee to pay online! All the accounts we've used it for have lowered our interest rate to 6% even if we used the card while he was deployed!

BOO. I was starting to get excited until I read this. So does that mean that if my our car loan was from Navy fed they won't honor this act?

[*Pamela*]

We're using it and it's been great so far. We just had to fax a copy of his orders to our creditors. Each one is different in what they will do though. You just have to call and ask.

[guynavywife]

Go to Legal on base. They can help you or steer you to someone who can.

[sailorsbaby]

Most places will only accept this if it was from before he joined the service, or got called to active duty. However, I've called all our companies at some point to see if they can lower interest rates and such, and some will. As far as his car is concerned, you can call your insurance company and tell them he's gone and no one is driving it. That'll drop your payments (just remember to call and change it when he gets back) but that's about all your going to be able to do. USAA is really good about the insurance thing. Also, it's not going to help with anything that's only in your name. And again, some places won't do the joint thing either. It never hurts to call and ask really nicely though.

[Rich Lunsford]

The SCRA is an excellent way to lower your expenses during deployment. I agree with most of the other posts on this subject and would like to direct you to usaa.com. Enter the search for deployment. There is an excellent checklist and downloadable information regarding the SCRA and other benefits you may be entitled to. For your USAA credit cards, the interest rate will fall to 4% APR and may even be rebated to you upon return from deployment.

Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

Credit cards provided by USAA Savings Bank, Member FDIC.

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.