1.11.2010

Military Money: SCRA

It's insane how high credit card interest rates have gotten these days! When we started living on one income, a military income, I decided to figure out a way to combat these interest rates. That's when I learned about the SCRA - the Servicemembers Civil Relief Act. Did you know there is a law that caps credit card interest at 6% for active duty military and spouses as long as the debt was entered into prior to active duty? 

"The SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty – instead that portion above 6 percent is permanently forgiven.  Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period." - Military.com and Here's some FAQ's

I did a search online for a sample letter and sent it off to our credit card companies. One company even put my account at 0% interest, and no minimum payment required for the entire time my husband is active duty!



* Please consult your local military legal office, this post is not intended to be legal advice.

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