Car Payments for the Active and Deployed Military

I'm thinking about joining the military after high school and I've been hearing some conflicting information—do deployed military members have to continue paying off their car payment while they're on duty overseas?

Generally, active duty service members are still responsible for fulfilling their financial obligations, which include necessities like car payments, even while deployed. However, there are some specific protections designed for military members federally, such as the Servicemembers Civil Relief Act (SCRA).

The SCRA puts a 6% cap on interest rates for loans you obtained before entering active duty, including car loans, and this cap applies to the entire period of your active duty. It's also important to note that any interest above the 6% cap must be entirely forgiven—it can't be turned into principal or accrued interest.

Communication with your lender is crucial. If you anticipate financial strain due to your deployment, contact your auto loan provider before you are deployed. They may have policies in place or be willing to work on an arrangement for deployed military members. It's also important to speak to a legal assistance attorney to fully understand your rights and obligations.

While the SCRA does offer some potential relief, it doesn't mean that you can ignore those debts or that they disappear while you're serving. An informed approach and excellent communication can help you navigate these financial obligations while serving your country.