Does SCRA Cover Spouses' Credit Card Debts?

Can Spouses' Credit Card Debts be Covered by SCRA?

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides protections for active-duty military members in various financial and legal matters. One common question that arises is whether SCRA covers spouses' credit card debts.

The short answer is no, SCRA does not cover spouses' credit card debts. The law only applies to the debts of active-duty military members who incurred the debt before entering active duty. However, there are some situations where a spouse's credit card debt may be covered under SCRA.

Joint Accounts

If an active-duty military member has a joint credit card account with their spouse, then the protections under SCRA may apply to both parties. This is becausejoint accountsare considered to be shared debts, and SCRA protections extend to shared debts. However, it's important to note that the protections only apply to the portion of the debt that is attributable to the active-duty member.

For example, if a couple has a joint credit card with a $10,000 balance, and the active-duty member contributed $5,000 to that balance, then SCRA protections would only apply to the active-duty member's $5,000 portion of the debt. The non-military spouse would still be responsible for the remaining $5,000.

Spousal Guarantees

Another situation where a spouse's credit card debt may be covered under SCRA is if the non-military spouse provided a spousal guarantee for the debt. A spousal guarantee is when a non-military spouse agrees to be responsible for a debt that is solely in the name of the active-duty member.

Under SCRA, the non-military spouse may be able to have the obligation to pay the debt postponed or reduced while the active-duty member is on qualifying military service. However, this only applies to debts that were incurred before the active-duty member entered military service.

Tips for Credit Card Management

While SCRA may not cover spouses' credit card debts in most cases, it's important for military families to be mindful of theircredit card management. Here are some tips to help manage credit card debts and avoid financial pitfalls:

- Always pay bills on time to avoid late fees and negative marks on your credit report.

- Keep an eye on interest rates and fees. Some credit cards may offer lower rates and fees for military members.

- Consider using a balance transfer credit card to consolidate high-interest debts into one lower-interest account.

- Avoid carrying a high balance on your credit card, as this can negatively impact your credit score and increase your debt.

- Be aware of credit card scams and protect your personal information from identity theft.

Conclusion

SCRA does not cover spouses' credit card debts in most cases, but there are some situations where a spouse's debt may be covered. Regardless, it's important for military families to be proactive in managing their credit card debts and avoiding financial pitfalls. By following these tips and being mindful of credit card management, military families can stay on top of their finances and enjoyfinancial stability.