How can a retired veteran fulfill his debt obligations?

       

Problem:

I have retired from my work 3 months back. I was fully engrossed with my job during the working life. I didn’t have any time to look into family matters. My wife used to take care of the household and the financial matters. My wife has expired last month. Needless to say, I have to look into the financial affairs nowadays.

Last week, I checked my credit report and discovered that I owe around $25,000 on a Citibank credit card. I don’t have the money to pay it off. I have applied for a loan in my bank. But the bank manager rejected my loan application. I don’t want to spend the remaining years of my life in fending off the creditors and collectors. But how do I get rid of debt eventually? Can I apply for a VA loan to get the required money? Please advice.

Solution:

Please accept my sincere condolences for your personal loss. Your current predicament is due to the negligence of the financial matters for a very long period of time. You have retired from your job, lost your wife, and are in debt. To sum up everything, you are facing a challenging situation right now.

I can’t tell you for sure as to whether or not VA (Veterans Affairs) loans are available for the credit card debts. You’ll have to contact the regional office of the VA regarding this issue. You can get the contact details of the office from the Yellow Pages or the Internet. Explain your situation to the regional officer of the VA department and find out whether or not there is a suitable product for you.

If you were a navy official, then you’ll have to get in touch with Navy-Marine Corps Relief Society regarding this matter. This counselor of this non-profit organization will be able to help you out. The counselor will compute your total expenditure in a month and suggest you the ways to decrease it. This may help you generate some cash, which in turn can be used to pay off your debts.

I have heard that the navy relief organization gives 0% loans to the retirees in case of financial emergencies. Talk to the counselor and ask him if you’ll be eligible for such a loan.

If you do qualify for such a loan, then you can use it to pay off your credit card debts. However, you should keep in mind that this new loan is not making you debt free completely. You are just shifting your debt to a new one. You’ll have to keep on making payments on the new loan.

You can go for credit counseling if you are not able to secure a loan from the navy relief organization. The credit counselor will create a spending plan for you after evaluating your financial situation. They will also talk with your creditors to slash the credit card interest rates if the situation demands. All you need to do is locate a reputable credit counseling agency.

If you are not able to make the credit card payments even after the reduction of the interest rates, then you’ll have to watch ways to increase your income. If you have equity in your home, then you can apply for a reverse mortgage or HELOC (Home Equity Line Of Credit). If you are physically active, then you can do a part-time job.

Finally, you can file bankruptcy if you fail to clear your dues through credit counseling. Bankruptcy will help you pay off the credit card debt in a legal way.

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