Your Guide To Paying The VA Debt Management Center

Letter From The VA Debt Management Center

Are you a veteran, a member of the Armed Forces, or a relative of one of the members? If you are, then you may have received correspondence from the VA Debt Management Center to inform you of your financial obligations to repay the Department of Veteran Affairs. These debts may have sprung from your involvement in pension and education programs, VA compensation and housing loans which ended before January 1, 1990. If indeed you owe the VA, this post can guide you on the various payment options you can use.

If You Owe VA Debt Management Center

Pay Online or By Phone. The VA Debt Management Center has provided a toll free number and an online payment portal in their website where you can make payments using credit cards and ACH debit payments. When paying for multiple accounts, such as compensation, pension, education and loan guarantee debts, it is recommended that you pay each of them separately. To avoid paying more than what you owe, call the VA Debt Management Center first before making the payment. This is advisable especially for those who enjoy monthly compensation, educational and pension benefits. There is a separate link and page for paying medical copayments that is also provided in their website.

Pay By Mail. When paying by mail, issue separate checks to individually pay for each debt and attach with it a payment remittance slip for each payment for guidance of the personnel receiving the payment. These payment remittance slips can be found at the bottom of their collection letters. They will send you a separate letter for each debt classification. Indicate the file number and deduction code on every check as this will signify what type of debt the payment is for, whether for housing allowance, advance payment, tuition and fees and others. You can find file numbers and deduction codes on the left side of the payment remittance slips and in the upper right hand of the letters. You may issue a single check to cover multiple categories of debt provided you also send with it payment remittance stubs for every debt category. In the absence of the collection letters, you can send the VA Debt Management Center a note enumerating the debts for which the payment is for and the respective amounts for each debt.

Pay Via Western Union. You can also send your payment through a Western Union branch  of your choice. A host city code is required to finish the transaction, so check the code in your city.

Pay Monthly Installments. If you cannot fully pay your debt at once, the VA Debt Management Center is willing to schedule a reasonable monthly payment scheme to allow you to gradually pay for your debt. To avail of this payment option, just send a letter specifying the amount you can afford to pay each month together with an accomplished Financial Report Status.

Pay Via Deductions. If you are receiving a benefit check each month, the VA Debt Management Center may have informed you of their intent to offset the full amount against your debt. You can propose a lesser offset amount if you need to receive a higher balance. To do this, you have to send a letter to the DMC indicating your proposed offset amount along with a Financial Status Report. However, if your proposed offset amount can settle your debt in a year or less, accomplishing the report is not necessary.

The VA Debt Management Center has provided several payment options to enable you to settle your debts the easiest way possible, by phone or online, by mail, via Western Union, through a monthly payment plan or via monthly offsets.