The Call-Up Changes Everything

One day you're working your civilian job, coaching your kid's soccer team, and living your normal life. The next, you're looking at activation orders. As a Reservist, the transition from civilian to active duty can happen fast—and so should your financial preparations.

The moment you receive those orders, SCRA protections apply. Here's what every Reservist needs to know.

Your SCRA Coverage Starts Immediately

When you receive Title 10 orders for more than 30 consecutive days, SCRA coverage begins on the date of the orders—not your report date, not your first day of training. The date printed on those orders is your SCRA start date.

This matters because:

  • Pre-existing debts qualify for the 6% cap from that date
  • You can begin filing claims immediately
  • Retroactive refunds will calculate from that date

What Counts as "Pre-Service" Debt for Reservists

Here's where it gets interesting for Reservists: you may have been in the Reserves for years, but SCRA's "pre-service" means before your active duty start date. So:

  • Debts from before you joined the Reserves: Qualify
  • Debts from while you were a drilling Reservist (M-Day status): Qualify
  • Debts incurred after your Title 10 activation date: Do not qualify

This means that credit card you opened last year while working your civilian job? It qualifies for SCRA when you're activated, even though you were already in the Reserves.

Protecting Your Civilian Employment

While SCRA focuses on financial protections, you should also know about USERRA (Uniformed Services Employment and Reemployment Rights Act), which protects your civilian job. Key points:

  • Your employer must hold your position (or an equivalent) while you're activated
  • You must be reinstated without loss of seniority
  • Your health insurance must be maintained or reinstated

SCRA and USERRA work together to protect both your finances and your career.

Immediate Steps When You Receive Orders

Day 1-3: Documentation

  1. Make multiple copies of your orders (you'll need them for everything)
  2. Download recent statements from all loan and credit accounts
  3. Note the opening date of each account
  4. Gather your most recent LES or pay stub showing your status

Day 4-7: Notification

  1. Contact each lender's military benefits department
  2. Submit written SCRA requests with copies of orders
  3. Request the 6% cap retroactive to your orders date
  4. Notify your landlord if you need to terminate a lease

Day 8-14: Verification

  1. Follow up to confirm receipt of your requests
  2. Get case numbers or confirmation numbers
  3. Set calendar reminders for 30-day follow-ups
  4. Begin automatic payment setup for simplified management

Managing Your Civilian Financial Life

Activation often means a significant change in income—sometimes up, sometimes down. Plan accordingly:

If your military pay is higher than civilian pay:

  • Increase debt payments to accelerate payoff
  • Build your emergency fund
  • Maximize TSP contributions
  • Don't inflate your lifestyle—activation is temporary

If your military pay is lower than civilian pay:

  • SCRA's 6% cap becomes especially valuable—file immediately
  • Reduce discretionary spending
  • Consider SCRA's other protections (lease termination, foreclosure protection)
  • Contact creditors proactively if you anticipate payment difficulties

Lease Termination Rights

If you signed a lease before receiving activation orders, SCRA allows you to terminate without penalty. This applies to:

  • Residential leases (apartments, houses)
  • Vehicle leases
  • Storage unit leases
  • Cell phone contracts (under certain conditions)

Provide your landlord or leasing company with written notice and a copy of your orders. Termination is effective 30 days after the next rent payment is due.

After Activation Ends

When your activation ends:

  • SCRA protections continue for a period (varies by protection type)
  • Interest rates may return to original levels—plan for higher payments
  • Use savings accumulated during activation to pay down principal
  • Keep documentation of your activation period for future reference

Don't Wait Until the Last Minute

The chaos of activation makes it easy to push financial tasks aside. Don't. Every day you delay filing SCRA claims is a day you're paying more interest than you should.

You're being called to serve your country. Make sure your country's protections are working for you from day one.