My buddy is in the military and he told me about the Servicemembers Civil Relief Act, and how it lets servicemembers get high interest rate debt reduced to a rate of only 6%. He is on active service and is racking up new credit card debt as fast as he can because he says it will only cost him 6% (instead of the 24% he has on his other cards now). Can I do that too?
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I wouldn't. Your friend should have his legal counsel or representative who knows the law inform him that the SCRA in Section 527 does allow you to get high interest rate credit card debt reduced to a rate of 6%, but that is only for debt you had BEFORE you entered active service as a reserve or enlisted. So, if your friend had his 24% credit card debt before he entered, that would be reduced to a maximum of 6%, but all the charges he makes after he enters service will be subject to the rate in the agreement. It is not a good idea to operate under a misunderstanding of the law.
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I wouldn't. Your friend should have his legal counsel or representative who knows the law inform him that the SCRA in Section 527 does allow you to get high interest rate credit card debt reduced to a rate of 6%, but that is only for debt you had BEFORE you entered active service as a reserve or enlisted. So, if your friend had his 24% credit card debt before he entered, that would be reduced to a maximum of 6%, but all the charges he makes after he enters service will be subject to the rate in the agreement. It is not a good idea to operate under a misunderstanding of the law.
