Military Payday Loans
Military payday loans are a great example of how limitless lending leads to disaster. No one was paying attention to military payday loans until it was much, much too late.
Military Payday Loans - Shoot 'em Up
If payday advance loans ever come under any sort of federal regulations, it will be because military payday loans took such a huge toll on our armed servicemen. The numbers are vague, but somewhere around 10% of all active duty personnel require financial counseling because of debt incurred through payday loans. At an individual level only one is at fault, but when hundreds of thousands of young American soldiers are placed under great stresses by military payday loans, its only a matter of time before action is taken against the true perpetrators.
Who is offering these military payday loan?
Outfits offering military payday loans constantly claim to have military or government sponsorship. They take up military-like names and set up shop right outside the bases, hire ex-military personnel to increase the image that their loans are just part of the program. But the United States government sponsors absolutely zero of these military payday loans, and the providers are nothing but greedy jerks looking to take advantage of a very impressionable demographic: young, hard-working, personally responsible, financially uneducated and with a government paycheck. Soldiers are the prime target for any form of cash advance payday loans because they are the very people who will be getting paid but never enough of it.
What's being done about the military payday loans problem
Financial counseling is never enough to fully repair the damage caused by military payday loans. Young, hard working soldiers go deep into debt without even knowing it, and the military cannot take any legal action against the people supplying these loans. they can - however - take action against the soldiers themselves. Punishments for abuse of payday cash loans in the military - in accordance to UCMJ Articles 123a & 134 - include:
- court martial
- loss of security clearance
- transfers to a different unit
The only course of action officers have is to make an example of the soldiers who abuse the payday advance. Hopefully this will discourage incoming soldiers to avoid the temptation for quick payday loans, but it probably won't, not until soldiers make more money and learn about their financial management. Protect yourself against the disadvantages of military loans. Make sue you are a smart lender.
How will the loan be paid off?
This should be one of the first questions any service man or woman asks themselves before actually taking out any kind of military pay day loans. They should be aware that the lender has already evaluated this question and knows that most people will already be behind in payments before they do. This is precisely why payday stores, including those offering military personal loans are among the fastest growing financial services in America, they make a hefty profit off of the often exorbitant interest rates that many people accumulate.