Deploying Shouldn't Mean Financial Stress

You're about to deploy overseas. Your mind is on mission preparation, family goodbyes, and the thousand details of leaving for months. The last thing you should be worrying about is whether your credit and finances will survive your absence.

SCRA provides powerful protections specifically designed for deploying service members. Here's how to set up your finances for success before you leave.

The 6% Cap: Your Deployment Savings Engine

If you haven't already filed for SCRA rate reductions, do it before you deploy. With the 6% cap in place:

  • Your debt shrinks while you're deployed—you'll pay less interest on every balance
  • More money goes to principal—accelerating your payoff timeline
  • Lower minimum payments—easier to manage from overseas
  • Cash savings accumulate—money that would have gone to interest stays in your account

Many service members return from deployment to find their debt situation significantly improved, thanks to the combination of deployment pay and reduced interest rates.

Automate Everything Before You Leave

Internet access during deployment ranges from limited to nonexistent. Set up your finances to run on autopilot:

Automatic bill payments:

  • Set up auto-pay for all credit cards, loans, and recurring bills
  • Schedule payments for a few days before due dates (buffer for processing)
  • Ensure your linked bank account has sufficient funds

Direct deposit allocation:

  • Set up MyPay to split your paycheck between bills account and savings
  • Consider increasing TSP contributions during deployment
  • Build your emergency fund automatically

Power of Attorney:

  • Grant a trusted family member POA for financial matters
  • Brief them on your accounts and expected bills
  • Provide access to online banking if appropriate

Credit Monitoring While Deployed

Identity theft doesn't take a break during your deployment. Protect yourself:

Active Duty Alert: Place a free active duty alert on your credit file. This requires creditors to take extra steps to verify identity before opening new accounts in your name. The alert lasts one year and can be renewed.

Credit Freeze: Consider freezing your credit entirely. You won't be applying for new credit during deployment anyway, and a freeze provides maximum protection.

Credit Monitoring: Sign up for free credit monitoring through your bank or a service like Credit Karma. Have alerts sent to an email you or your spouse can check.

SCRA Protections During Deployment

Beyond the 6% rate cap, SCRA provides additional protections particularly valuable during deployment:

Default Judgment Protection: If you're sued while deployed, you can't have a default judgment entered against you without the court first determining that your military service doesn't affect your ability to defend yourself.

Stay of Proceedings: You can request that court proceedings be postponed during your deployment and for a period afterward.

Eviction Protection: Your family cannot be evicted from your residence without a court order while you're on active duty.

Lease Termination: If you receive deployment orders after signing a lease, you can terminate that lease early.

Managing Finances From Overseas

When you do have internet access:

  • Check accounts weekly if possible—look for unusual activity
  • Verify auto-payments are processing—catch any failures early
  • Communicate with your POA—address any issues they've encountered
  • Monitor your credit periodically—even brief checks help

Combat Zone Tax Benefits

If you're deploying to a designated combat zone, remember:

  • Your military pay is tax-free for months served in the combat zone
  • Filing deadlines are extended
  • You may be able to contribute more to a Roth IRA (tax-free income doesn't count against income limits the same way)
  • Keep records of your combat zone service dates

Pre-Deployment Financial Checklist

30 days out:

  1. File SCRA requests with all lenders if not already done
  2. Set up automatic payments for all recurring bills
  3. Establish power of attorney
  4. Place active duty alert on credit file

14 days out:

  1. Verify all auto-payments are scheduled correctly
  2. Brief your POA on financial expectations
  3. Check that emergency fund is adequate
  4. Review insurance coverages and beneficiaries

7 days out:

  1. Pay any bills due soon to create buffer
  2. Ensure sufficient funds in checking account
  3. Test access to online banking
  4. Save important financial documents in accessible location

Return From Deployment

When you get back:

  • Review all accounts for any issues during your absence
  • Verify SCRA rates are still applied (they should be)
  • Request refunds for any excess interest paid
  • Consider redirecting deployment savings toward debt payoff

Deployment is hard. Your finances don't have to make it harder. Set up protections before you leave, and return to a stronger financial position than when you left.