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Money When You Need a Hand Up, Not a Hand Out


Making ends meet, it’s not always easy.  Sometimes unexpected expenses can throw off your whole monthly budget. As hard as you try, credit card bills can stack up. And with the interest rates charged on credit cards these days, you could be paying much, much more for the items you bought than you think!

Have you heard of the Career Assistance Program (CAP) Loan introduced by AAFMAA? It’s just one of the many programs designed to help young service members navigate military life. Developed back in 1997, the CAP Loan has helped tens of thousands of military families pay off high-interest debt, monthly bills, and afford that important plane ticket, wedding expenses, or unexpected but necessary travel to see someone who needs them. If you qualify, no matter what you intend to spend the money on, AAFMAA’s loan can help.

The CAP Loan is a $4,000, one-time only loan, with a 1.5% APR for active duty military service members in ranks E-5, E-6, E-7, E-8, E-9, WO1, CW2, O-1, O-2 and O-3.  Any active duty service members in these ranks in the Marine Corps, Army, Air Force, Navy or Coast Guard can apply.  National Guard and Reserve members are eligible as well. Repayment of the loan is through military allotment over 48 months (other arrangements can be made for Guard and Reserve members who cannot start an allotment).

In order to qualify, you need to be an AAFMAA member. Membership is a cinch when you buy your first life insurance policy of at least $250,000 term coverage or $50,000 whole life; you then become eligible to apply for the CAP Loan.

What does life insurance cost? Depending on your age, you can get a $250,000 term policy for as little as $13 per month. It’s a great way to supplement your SGLI coverage or replace a portion of it for less money. The loan payment and insurance premium payment can be combined into one allotted payment with no credit checks involved.

The CAP is an easy way to get some much needed money help with meeting daily living expenses or for something extra you’ve been wanting to buy.  While we don’t encourage anyone to accumulate more debt, if you have high-interest credit card debt now, you can use the $4,000 to pay down that debt, thereby making your monthly payments less.

A non-salaried, non-commissioned AAFMAA Membership Coordinator can answer any questions for you and help you get started. They’re available to answer calls Monday through Friday, 8:30 a.m. – 7:00 p.m. Eastern Time, toll-free at 1-877-398-2263 or via email to membership@aafmaa.com .  You can also get more CAP info online at AAFMAA’s website.

This post was graciously sponsored by AAFMAA

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