Credit Counseling for Veterans

Are you a veteran who’s struggling to manage debt or build up good credit? Unfortunately, these issues are common for veterans.

Why? In addition to the tough economic conditions that impact all of us, “Some vets haven’t received adequate financial education, making it difficult for them to manage their money effectively,” says Stephanie Helms, executive director of Kline Veterans Fund. “This can lead to poor financial decisions, such as overspending or taking on excessive debt.”

Fortunately, there’s help for veterans who want to turn their finances around. The right nonprofit credit counseling agency can not only give you guidance and resources but help you get back on the right track.

What Is Credit Counseling?

Credit counseling is a free or low-cost service meant to help you manage your debt and improve your finances and credit. This counseling is usually offered by nonprofit agencies and comes in the form of one-on-one appointments and education.

When you meet with a certified credit counselor, which you can do online, in-person or by phone, you can ask questions about money and get personalized, professional support with any of the following issues:

• Budgeting
• Debt management
• Home buying
• Car buying
• Credit reports and scores
• Preventing foreclosure and repossession
• Student loans

Some credit counseling agencies also offer special counseling for servicemembers and veterans. Their counselors can help you navigate the challenges associated with living as a veteran and help you make better use of your benefits.

Unique Financial Challenges for Veterans

Managing money is difficult for most civilians, but veterans have extra challenges to overcome. “Our veterans face a complex set of economic hurdles that require tailored solutions and support,” says Helms.

“Vets on fixed incomes have difficulty making ends meet, especially those who served in lower-ranking positions or for shorter periods,” she explains.

As you reenter civilian life, you might find rent unaffordable, for example. Studies also show that veterans are disproportionately affected by physical health challenges and disabilities, which only adds to their financial burdens.

Benefits of Credit Counseling for Veterans

Credit counseling gives you confidence that you don’t have to manage your financial challenges alone. Here’s what you can gain from meeting with a credit counselor:

Improved Financial Literacy

You don’t have to stay in the dark when it comes to understanding money. When you meet with a certified credit counselor, you’ll have a financial expert who can answer your questions about a variety of money-related concerns and empower you to understand your options.

Credit counseling agencies also offer workshops, webinars and online content to help you build financial literacy, whether it’s by teaching you how to pay off debt sooner, ways to eliminate credit card debt, or how to buy a home.

Debt Reduction and Management

If you’re struggling with debt, don’t delay in reaching out to a credit counselor. A certified counselor will evaluate your debt and help you understand the pros and cons of each potential solution. They can advise you on:

• Asking creditors for help
• Dealing with debt collectors
• Settling debt for less than you owe
• Debt management plans
• Filing for bankruptcy
• The Servicemembers Civil Relief Act and your other financial protections

Stress Reduction and Improved Mental Health

A 2023 survey from the American Psychological Association found that money is the top source of stress for 63% of adults, and 45% are too embarrassed to talk about their finances with anyone.

But when you operate under stress, you’re more likely to make financial mistakes.

“Mental health issues, such as PTSD or depression, can make it more difficult for veterans to manage their finances,” Helms said. “These conditions may lead to impulsive spending, difficulty budgeting, or avoidance of financial matters.”

Credit counseling offers a path out of stress and isolation. While discussing your financial troubles with your spouse or family members might lead to arguments, your certified credit counselor can share objective, judgment-free insights and solutions.

Appointments are also confidential, so you don’t have to worry about anyone finding out what you discussed.

Tailored Support for Veterans’ Specific Needs

Credit counselors are trained to coach you through life’s biggest financial challenges. For veterans, this counseling can include help with the following specific difficulties:

• Managing the cost of re-entry into civilian life
• Dealing with gaps in employment
• Navigating your retirement plan and other military benefits
• Covering expenses for physical and mental health care
• Avoiding or recovering from scams that target servicemembers

Choosing the Right Credit Counseling Agency

Credit counseling agencies are not all the same. Unfortunately, some agencies will pressure you to sign up for costly services, regardless of your situation.

Others, however, exist solely to help you improve your finances. Here’s what to look for when choosing an agency:

• Accreditation: Most importantly, your counselor should be certified by a reputable organization like the NFCC or the Association for Financial Counseling and Planning Education (AFCPE). It’s also a good sign if the agency offers HUD-approved housing counseling.
• Nonprofit status: Choosing a 501(c)(3) nonprofit agency will help you avoid being scammed. You put yourself at risk if you work with for-profit counseling or debt settlement companies and credit repair agencies.
• Range of services: Some agencies are “debt management mills” that push you into signing up for fee-based services. A trustworthy agency will take time to understand your situation and offer a variety of possible solutions and free educational resources.
• Affordability: General credit counseling and education should be free. For paid services, some agencies offer fee waivers based on income or military service. You should also be able to go online and find a clear breakdown of their costs.

For a reputable agency that meets all of these requirements, and offers credit counseling for veterans, you can start by trying InCharge Debt Solutions, GreenPath Financial Wellness or American Consumer Credit Counseling.

Steps to Get Started with Credit Counseling

You can start free credit counseling with just a few clicks or a phone call.

For the NFCC, use their online agency-finder or call 1-800-388-2227. For the AFCPE, search for a certified professional and set the “professional details” filter to military.

Once you get in contact, a counselor can suggest the appropriate type of counseling appointment and advise you on how to prepare. For example, they might encourage you to gather financial documents beforehand.

From Service to Stability

In 2024, credit counseling saw a huge rise in popularity. Why? Because debt is such a widespread problem that many consumers need reliable and affordable help.

In other words, you’re not the only one who could use professional support, and your struggles with money are not a personal failure. As a veteran, you have extra burdens to carry. Fortunately, you don’t have to dig yourself out of the trench alone: a credit counselor is waiting to offer a hand.