When soldiers come back from serving their tour of duty, they often have financial problems stemming from some mistakes they made while they were active on a military base.
High Credit Card Bills
Many soldiers set their bills up to be paid automatically while they are serving their tour and this can lead to high credit card bills when they return home. In some cases, credit card accounts may end up being closed because the soldier neglected them. This can have a negative impact on their credit score, making it hard to rely on credit cards to get them on their feet when they get home. It can be just as much of a problem if they have their bills automatically withdrawn from their checking account. They can either come home with an empty or overdrawn bank account, which is also very bad for their finances.
Using Payday Loans To Pay Off Credit Cards
Many soldiers will turn to payday loans in order to pay off their credit card debt when they return home. Since most soldiers are not able to find regular employment after they have just come back from their tour, they may not even be eligible for the payday loan they would need to get back on their feet financially. It can also become a problem when a soldier does obtain a payday loan after returning home, but are not able to pay it back right away. Failure to do so can negatively affect both their credit and their chances of qualifying for another payday loan in the future.
When serving in the military, soldiers are very limited in the food available for them to eat and the leisure activities available to them during their free time. This means when they get home a lot of them will start spending elaborate amounts of money on expensive dinners, vacations, clothing and more. While this may help them recapture what they know to be a normal life, it can also be a bad financial decision to make.
Taking A Low Paying Job
Since the job market is so tough these days, soldiers often resign themselves to taking jobs they would not normally take. They will do it though, to be able to have a job at all. Working a low paying job can be difficult when one is used to a nicer lifestyle that they may not be able to afford on a job that only involve manual labor.
Not Rebuilding Credit Correctly
Rebuilding a soldier’s credit can be an uphill battle, especially if they go about doing it the wrong way. They make take the first credit card they qualify for and find out later on that the credit card they chose comes with high fees they had not counted on.
Making these common financial mistakes is something many soldiers have had to deal with and will have to continue dealing with. Returning to normal life after serving in the military can be a very stressful experience.
Dave Smith is a financial blogger with a passion for frugality. He believes that we are not at fault for some financial investments and that its never to late to have them corrected.