USAA (United States Automobile Association) was founded in 1922 by a group of Army officers who were unable to get auto insurance because military members were considered high risk. In addition to insurance, they now offer banking, credit cards, investment and retirement planning.
Although it was last reported in 2021, USAA stands as the 12th largest bank in terms of total outstanding credit card balance. According to WalletHub.com, USAA consumers possess $14.5 million of credit card debt. This represents about 1.5% of the market share.
What are your options to pay back your USAA Bank credit card debt?
Facing a large amount of credit card debt and/or personal loans an be scary. It’s a constant reminder that we messed up. And chances are neither your formal education nor your parents prepared you on how to handle this situation.
There are many debt consolidation options to consider when trying to pay back your USAA credit card debt. The five main options are:
- Debt Consolidation Loan
- 0% Balance Transfer
- USAA Bank Internal Hardship Program
- Debt Management Plan (Credit Counseling)
- Debt Settlement Plan
But the one thing that must be done regardless is putting a stop to overspending. Each time we use a credit card we are likely purchasing something we can’t afford.
Create a detailed budget outlining all income and all expenses. Revisit this budget periodically and make revisions. Increase income. And decrease expenses.
USAA Bank Credit Card Hardship program
If you find yourself struggling with credit card debt, hardship programs can help. Contact USAA Bank directly and let them know about your personal hardship. Provide as many details as possible about your financial situation. Be prepared to provide them with your monthly income and expenses. Stating that you are simply looking for a lower interest rate and payments probably won’t work. You must have a compelling hardship such as job loss or medical emergency to qualify.
Any concessions granted by USAA Bank will typically be temporary. A lower interest rate will likely last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit or even close your card once they approve you on their hardship plan.
If you have no luck getting concessions or want more long-term benefits, credit counseling is your next best option. USAA Bank works incredibly well with these nonprofit organizations. They offer clients interest rates usually below 5%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.
DebtWave has been helping USAA Bank clients for more than 20 years
DebtWave has worked with various credit card accounts, including USAA Bank, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as American Express, Comenity Bank and Chase accounts. Clients make payments via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.
From 2010 to 2024, DebtWave helped clients with a total 873 USAA Bank accounts. The total credit card and personal loan balance. The total debt enrolled onto our program during that time was $6.4 million with an average balance of $9,910 per account. Many clients witnessed their interest rates drop drastically along with a reduction in monthly payments.
Here are some additional stats from these clients:
The Dream of Getting Out of Debt on Your Own is Still Alive
Paying back your credit card debt seems unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make progress.
If you have your rates reduced to less than 10%, then use a payoff calculator or google spreadsheet to create a plan. Find ways to increase income and reduce expenses. Stay motivated and refrain from using cards again. Build an iron clad budget that accounts for all expenses.