Veterans face financial hurdles after service, but free help is available
It's estimated that as many as one in three veterans experience financial stress within the first year or two after leaving the military. For many, that transition can feel sudden, overwhelming and, at times, isolating.
For Ricky Montgomery of Mount Holly, New Jersey, the change was stark.
Montgomery retired sergeant first class in the Army in 2023 after more than a decade of service. Looking back at photos and mementos from his military career, he reflected on the discipline and pride that defined those years.
"To make it to the senior non-commission officer ranks as a sergeant first class, it is not an easy feat," Montgomery said.
But once he returned home, he found himself navigating a completely different kind of challenge.
"There is no manual to coach, teach and mentor you through that step," Montgomery said. "So it's more like, where do I now serve? There is a real transitional period."
That transition can include a sudden loss of structured income, unexpected expenses and, for some veterans, difficulty finding steady employment. Without significant savings, those pressures can quickly lead to mounting debt.
Advocates say Montgomery's experience is common.
"When I asked my veterans, 'Raise your hand if you had over $3,000 saved when you got out of your service for four to six years,'" said David Ramirez with the nonprofit SoldierOn. "The challenge there — it's hard to save money while you're in service, right? We're on fixed incomes."
Ramirez says those financial realities are compounded by the loss of the support systems service members rely on while in uniform.
"For anybody listening out there, that could be like, 'Wow, that's something I do every day,'" Ramirez said. "But for us, someone serving four to six years, 20 years, those are challenges when transitioning."
SoldierOn works to bridge that gap. The nonprofit provides veterans with housing assistance, financial counseling and access to federal grant programs designed to promote long-term stability.
For Montgomery, that support proved life-changing.
"The first thing for me was to drop the ego and not say, 'Look, I'm a soldier, I can do all this on my own,'" he said.
With guidance from counselors, he was able to rebuild his finances, pay down debts, and raise his credit score by more than 100 points in about a year. It's a milestone he says once felt out of reach.
Now, Montgomery hopes his story encourages other veterans to seek help.
"To the veterans out there who are feeling that there's no hope, and you feel as though that you can't make it, I'm just here to tell you to just hold on, because there's a light at the end of the tunnel," he said.
SoldierOn serves veterans across Pennsylvania, New Jersey and Delaware. Free financial counseling is available through a partnership with nonprofit Money Management International.
Credit counseling can help you build a realistic budget and explore repayment strategies. Counselors can also potentially enroll you in a debt management plan, which can consolidate payments and reduce interest rates.
Debt is a focus this month on the In Your Corner podcast, covering common mistakes, practical payoff strategies and guidance on when to seek help. You can listen to the full discussion on the latest episode on CBS News Philadelphia's YouTube channel.