My buddy is in the military and he told me about the Servicemembers Civil Relief Act, and how it lets him get high interest rates reduced to 6%. He is on active duty 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 he do that?
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We wouldn't recommend it. Your friend should have his legal counsel who knows the law, remind him that the SCRA in Section 527 does allow him to have high interest rate credit card debt reduced to a rate of 6%, but that is only for debt he had before he entered active duty as a reserveist or joined. 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 his contract. So it is not a good idea to operate under a misunderstanding of the law.
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We wouldn't recommend it. Your friend should have his legal counsel who knows the law, remind him that the SCRA in 