There is an all-too-familiar thread that connects generations of military families: one missed paycheck is all it takes to send them over the financial edge.
Even under normal circumstances, many juggle rent, child care costs, rising food prices, and the realities of military moves or unexpected emergency expenses that drain savings faster than expected. We see this reflected in the recent Wounded Warrior Project Warrior Survey, where more than 4 in 6 warriors struggled to make ends meet in the last 12 months, and 2 in 5 warriors live paycheck to paycheck. So, when an unexpected disruption occurs—such as the recent government shutdown—those pressures are only reinforced. Paychecks pause. Bills do not.
Few households can weather a financial shock. Families are often forced to fill the gap by tapping into savings, credit cards, emergency loans, or any other available means of support. But once back pay or regular income resumes, a quieter but equally challenging phase begins: rebuilding, repairing credit, and restoring financial stability. Service members and veterans who have missed a paycheck or are struggling to make ends meet can take steps to improve and protect their financial future.
What hard inquiries actually mean
Many who sought emergency loans during a pay lapse had no choice but to undergo hard credit checks. A single inquiry might only lower a score by five to 10 points, but for those still building credit history, it's a drop that can significantly limit access to future options.
There are ways to soften the impact on credit scores much faster than most borrowers expect, starting with payment strategies:
Make all payments on time, without exception.
Pay down revolving balances, starting with cards near or over 30% utilization.
Avoid new credit applications for at least 12 months.
Keep cards open—especially older ones—to maintain credit and utilization ratios.
Monitor credit reports routinely to catch inaccuracies or fraudulent activity early.
Prioritizing backpay
When income resumes, focus every dollar on restoring stability. Cover essentials first—housing, utilities, transportation — then bring delinquent accounts current. Each resolved past-due balance leads to improved credit. Once essentials and accounts are stable, reduce credit card debt to rebuild your score.
Three repayment strategies can help, depending on your goals:
Highest interest rate first: reduces the total cost over time.
Highest balance first: lowers credit utilization ratio more quickly.
Smallest balance first: eliminates entire accounts, making future management easier.
Short-term loans, such as payday or title loans, often come with high interest rates and unfavorable terms, making it difficult to pay off the full balance without incurring additional risk. Make an intentional effort to repay in full and avoid this alternative moving forward. Even if your score takes a temporary dip, the long-term relief is worth it.
If full repayment isn’t an option, learn more about a payday alternative loan (PAL). This loan caps interest at 28% and offers fixed terms that are easier to manage. Another path is a debt management plan (DMP) offered by an accredited nonprofit. These plans can reduce your interest, eliminate fees, and consolidate payments — without the long-term damage that can come from settlement or default. Be sure to work with a provider accredited by the National Foundation for Credit Counseling or the Financial Counseling Association of America.
Building credit stability and everyday readiness
A paycheck in hand doesn’t mean the pressure has passed. Long-term financial readiness still depends on everyday decisions, especially when the margin of error is slim for those early in their military careers, transitioning to the civilian sector, or between jobs. WWP offers financial wellness programs that build long-term financial resilience, including budget planning, debt management, career counseling, and benefits assistance.
These programs focus on early warning signs: raising balances, missed minimum payments, frequent credit checks, unexpected fees, and increased reliance on cash advances or payday lenders.
To strengthen stability, there are three simple habits that can be adopted today:
Automate minimum payments to avoid missed due dates and protect payment history.
Keep revolving balances below 30% of available credit — a key factor in credit scoring.
Watch new debts—stress-driven borrowing can lead to overextension.
Other things to consider:
SNAP and WIC benefits have resumed but amounts and timing vary by state. Report income changes or backpay promptly. Monitor your account and avoid bulk spending until your new benefit level is confirmed.
There are legal protections, like the Servicemembers Civil Relief Act and the Military Lending Act, but they’re limited and not automatic. Helpful resources can be found on the Consumer Financial Protection Bureau Resource hub.
For many service members and veterans, financial triage is a daily reality — where one dollar is expected to cover the cost of three. And while shutdowns bring national attention to pay disruptions, the truth is that far too many in uniform, as well as those who have worn it, are navigating instability every month. Financial readiness cannot be viewed as a reactive measure. It must be sustained, deliberate, and supported — through education, timely guidance, and policies that recognize the realities of those who have served and those who continue to do so.
If you are a post-9/11 veteran or service member, WWP offers a wide range of programs and services that work together to empower your social, physical, mental, and financial wellness. Learn more here.
Deborah Holmes is the financial readiness manager for Wounded Warrior Project.