Benefits and pay that are paid to the Servicemember cover a variety of different issues. In addition the Servicemember has the ability to direct their military pay and benefits to a variety of locations, and done so by direction of the military personnel involved. An allotment is basically a specified payment that is given by the instruction of the military Servicemember. All of the pay and allowances can be directed by the allotment method toward whatever debt or bill that the Servicemember wishes it to be applied toward.
A military Servicemember has a number of different sources of income from their benefits and basic pay. Basic allowance for subsistence, basic allowance for quarters, and basic and special pay, all can be designated to a specific destination or payee. An allotment can be stopped, or started at any time by the Servicemember, and it can be directed to anyone that the Servicemember choose. An allotment cannot be used to pay for more than one sum of money per organization or person. Allotments come in two different types, non discretionary and discretionary. If you have a non-discretionary allotment it is one that the Servicemember does not have any input in, such as a divorce degree or a mandatory court ordered settlement. An allotment that is discretionary is one that is set up by the choice of the Servicemember, and is issued to wherever the Servicemember wishes. Allotments are designed to set up a payment to an organization or individual using electronic or other means of transfer. An allotment can be set up using a regular old fashioned paper check or physical funds disbursement, but in the age of electronic bank transfers the majority of military allotments are now paid using electronic means. There are some different types of allotments, some of which include:
Dependant Allotments- You can send allotments to your dependents or to relatives. This can be to a dependent, relative, even to a divorced spouse.
Insurance Allotments- Insurance allotments can be set up to pay for insurance policies, for both Servicemembers and for their Dependants. It can be set up for private insurance or Servicemember group policies.
Financial Group Allotments- You can make payments to loan companies, savings, credit companies and financial type institutions and businesses. There can be a variety of reasons for Servicemembers and their dependents to pay for financial and business issues.