When you are on active duty, it can be hard to manage credit payments. This is especially true if you have loans with high interest. The Servicemembers Civil Relief Act (SCRA) offers a solution. It lets you cut the interest rate on pre-existing loans while you are serving. This law sets a 6% maximum interest rate. The rate includes service charges, renewal charges, and fees.
The SCRA applies when your active duty impacts your ability to pay. For example, your income decreases due to military service.
Here is a sample letter called the "Letter to Request 6% Interest Rate Cap on Loans." Use the SCRA and the sample letter to save money during your active duty. Customize the letter to fit your situation.
Last Reviewed: July 23, 2024