Military life is expensive enough. Between PCS moves, last-minute orders, and unpredictable deployments, your budget takes enough hits without adding sky-high interest rates and lease agreements that don’t account for military realities.
The Servicemembers Civil Relief Act (SCRA) is supposed to protect military families from these financial traps, but here’s the problem. Landlords, banks, and leasing companies aren’t going to remind you it exists. They won’t tell you that you can legally break a lease with no penalty or that your credit card company has to slash your interest rate just because your spouse is on active duty.
So, if you’re not using SCRA, you’re overpaying. And that’s exactly what these companies are hoping for.
What SCRA does for mil fams
SCRA is a federal law designed to keep military families from getting financially wrecked by policies that don’t account for PCS orders, deployments, or military pay structures. It applies to active duty service members, Reservists on active orders, and in some cases, recently separated veterans.
The biggest benefits? Lower interest rates, lease flexibility, and legal protections against evictions, foreclosures, and lawsuits while your spouse is serving.
But none of these benefits happen automatically. You have to ask for them.
No one should be paying 20% APR
If your family has a credit card, auto loan, mortgage, or personal loan taken out before your spouse joined active duty, the lender is legally required to cap the interest rate at 6%. That could mean cutting your payments in half.
And if you’ve already been paying too much? They have to refund the difference.
To make that happen, first, check the dates. The debt must have been taken out before your spouse started active duty.
Submit a written request. Email or mail a letter to the lender, attaching a copy of your spouse’s active duty orders.
Confirm retroactive adjustments. The lender must apply the 6% cap starting from the first day of active duty—not just from the date you apply. If they owe you a refund, demand it.
Watch for stalling tactics. SCRA protections do not hurt your credit score. If a lender says otherwise or drags their feet, push back hard.
Some lenders will drop rates even lower than 6% (sometimes to 0%) if you ask. Call and say, “Do you offer a better rate than the standard SCRA adjustment?” They won’t offer unless you ask.
Break a lease
Landlords love to act like a PCS order is a personal inconvenience. It’s not. It’s federal law. SCRA makes it illegal for them to charge you penalties for breaking a lease due to military orders. That includes PCS moves, deployments, and separations. They cannot keep your security deposit, charge early termination fees, or refuse to let you out of the lease once you’ve given proper notice.
To use SCRA to break your lease, give written notice immediately. Email is usually fine but check the lease terms just in case. Attach your spouse’s orders.
Follow the 30-day rule. You must give notice at least 30 days before the next rent payment is due.
If they refuse, remind them they’re breaking federal law. Some landlords play dumb or claim they “don’t accept military clauses.” That’s not how SCRA works.
If they still push back, go to base legal. A quick call from the legal office usually straightens them out. If not, they can take legal action.
PCS orders, deployments, and separations all qualify for lease termination. If your spouse is moving, you can break the lease. No negotiations.
Other SCRA protections
Beyond rent and interest rates, SCRA offers even more financial protections—most of which military spouses never hear about.
Car leases: If PCS orders send your family overseas for more than 180 days, you can break an auto lease with no penalties.
Eviction protection: If your rent is below a certain threshold (set annually), your landlord cannot evict you without a court order—even if you’re behind on payments.
Foreclosure protection: If your spouse is active duty and you fall behind on mortgage payments, SCRA prevents lenders from foreclosing without a court order.
Legal delays: If someone tries to sue your family while your spouse is deployed, you can request a court delay until they return.
If you don’t use SCRA, you’re overpaying
SCRA isn’t a favor. It’s a law designed to keep military families from being financially punished for a career they didn’t choose.
But landlords, lenders, and leasing companies are counting on you not knowing your rights. They won’t remind you that you can break a lease or demand a lower interest rate. They will gladly let you keep overpaying, unless you stop them.
So start asking. Get the lower rate. Break the lease. Push back when they try to stall. Because the only money you lose is the money you didn’t fight to keep.