Should I take a military pay advance when I PCS?

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For many situations, yes. Taking a pay advance when you PCS is a great way to help yourself out get ahead financially and stay out of debt while you PCS. There are many costs associated with a PCS, not all of which are reimbursed.

A pay advance is a 0% loan to your present self from your future self. You can usually get a month's pay (BAH + Basic Pay, no BAS or incentive pays usually) advanced to you (with the taxes taken out) and then pay it back over the next 12 months. It's a fairly painless process that can usually be accomplished through your online finance office or in the finance customer service area on one form. If you only take a month's pay out and repay it over 12 months, you don't even need a commander's signature: it's automatically approved.

The repayment is taken directly out of each paycheck, so you don't need to worry about being late on a payment. If you are taking out a month's pay and paying it back over a year, each paycheck won't decrease that much (usually less than $200, for most pay grades).

This can be a good option if your PCS coincides with a pay raise from either BAH increase, time in grade pay increase, or a promotion. Because of the pay raise, you'll still be living on close to what you were making previously, but have you'll have a few extra thousands of dollars in the bank. This can be perfect for getting your emergency fund started, paying down high interest loans so you can move towards debt freedom, or just to meet your savings goals.

Many people are opposed to accumulating debt in any form and generally I agree with them. Paying down high interest credit card debt, student loans, and car loans are a great way to create more cash flow every month and to start building a solid financial foundation. The pay advance is a great way to get access to a good amount of cash at 0% interest and then quickly pay it back over a year.

3 thoughts on “Should I take a military pay advance when I PCS?”

  1. Great article. Thanks for the info, you made it easy to understand. BTW, if anyone needs to fill out a “1990 DD 2560”, I found a blank fillable form here: I also saw some decent tutorials on how to fill it out.

  2. We just found out that this info is incorrect. BAH is NOT included in the advance pay, you only get basic pay and they will deduct ANYTHING that is usually deducted from your pay every month like taxes, tricare,alimony… So if you pay alimony out of your paycheck every month, they would deduct that amount from your advance pay as well.

    • Hey Mia. It really depends on your PCS, but according to DOD Financial Management Regulation 7000.14-R, if your orders are for assignment to a “distant duty station,” you “may be paid an advance of pay and allowances.” This would include BAH. See page 32-10 of that PDF. If you feel like the Finance office messed up your advance, have a chat with them! That’s why they are there. Also, yes, all deductions are taken out of the advance when it is issued to you.


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