Lower interest rates possible for pre-military debts Published Feb. 7, 2008 1st SOW/JA Preventive Law Program HURLBURT FIELD, Fla. -- If a person has debt from before entering active duty, they may be able to reduce their interest rate to six percent. This includes credit cards, furniture loans, car loans and private student loans. A pre-military creditor is required to reduce the member's interest rate to six percent upon receipt of written notice of entrance into active duty military service. Also, this is retroactive. That means if the person waited four months after entering active duty to ask for the interest reduction, the company has to refund the difference in interest they charged beyond the six percent maximum during those four months. However, the creditor can petition the court and prove that entering active duty did not materially affect the debtor and that the higher interest rate should in fact apply. Courts normally compare the debtor's pre-service and service income to determine material affect in this instance. If the debtor is making the same or more money after entering active duty, the reduction to six percent interest will not likely apply. For more information, call 884-7821.