Three ways military families can avoid debt traps

As seen on MyMilitarySavings.com Blog

Tired of paying interest and fees on those credit cards and payday loans? 

We have a solution and it’s called Zebit!

With one in four military families carrying $10,000 in credit card debt and 10% of families owing $20,000 or more, the interest and fees can really add up! Although credit cards or payday loans may help temporarily, these credit options can actually do more harm than good. Why? These options don’t understand the special circumstances of military life—frequently moving, deploying, or stretched paychecks—and, unfortunately, charge exorbitant interest and fees that can become overwhelming, fast.

If you or someone you know wants to get back on track with personal finances, avoid debt traps, or find a responsible credit model that is focused on your well-being, follow these tips from Zebit’s CEO, Michael Thiemann.

  1. Beware of Credit Cards

Many people resort to high-interest credit cards for large or unexpected purchases when they don’t have the cash. The problem many may not realize is that many credit card options actually have deceptive fine print that can raise interest rates, penalize you for a late payment, and charge other fees like printed statements.  One wrong move can easily create a spiral of debt. As proof, 25% of military families carry $10,000 in credit card debt.1 Although credit cards may help temporarily, it’s clear that these creditors can actually do more harm than good. Unless you can pay off your credit card balance every month, consider other financing alternatives.

  1. Avoid Payday Loans

If a military member needs a small loan until payday, the fees are equal to charging up to 400% APR, and it only goes up if the loan has to be rolled over until the next payday.  If they ultimately default, the lender is likely to become aggressive, even predatory. They might report to a credit bureau, sell the receivable, or call incessantly with threats of reporting the default to their commanding officer. Regardless, any course of action could put the military member’s livelihood at risk and would undoubtedly increase the misery and stress inflicted. 

  1. Turn to Zebit, a Worry-Free and Responsible Credit Option

Thankfully, there’s FINALLY a company helping to protect the people that protect this great nation. Zebit is focused on improving the lives of those who serve in the U.S. military by offering them $1,000 interest-free credit without a credit check. It allows active military members and those retired from the military with 20 or more years of service to more affordably buy what they need now (washing machine, TV, furniture, baby stroller, etc.), while paying for it over time at 0% APR forever. Zebit’s responsible credit model, called a ZebitLine, is used to make purchases in the Zebit Market, featuring thousands of brand name goods and services at retail prices. This is an amazing first of its kind financing solution to help hardworking Americans avoid revolving debt and accruing interest that comes with credit cards or other financing options. With access to Zebit’s 0% APR credit, military families can eliminate interest, reduce their debt, and create a more stable financial future.

Active and retired military members associated with the U.S. Army, Marine Corps, Navy, Air Force and Coast Guard interested in joining Zebit and receiving $1,000 interest-free credit should visit www-staging.zebit.com/military.

 

1InCharge.org