Military Loans: Don't Get Taken
There are a number of great military loan deals out there if you are a member of the armed forces. If you are a in the US Army, Navy, or any other branch, you can land great personal loans at lower interest rates that can make your life easier. However, the very service to your country that makes you eligible for such great loans also makes you vulnerable to bad loans as well.
The general US population is taken for almost three and a half billion dollars per year in extra fees by payday lending companies. Since these companies have put together a business model made to reap rewards from repeat borrowers, they can be classified as predatory. One of their favorite targets are members of the US armed forces in the form of what they will call US military loans or sometimes Armed Forces loans.
These companies of found that members of the USAF, Marines, or even the National Guard are ideal as targets for these types of loans. You, as a government employee, have a steady income from the US government and you have a very little to spare in most cases. Then, deployment time comes, and your family needs money for extra expenses. That is where these companies step in. They offer your family a quick cash payday loan at a “military loan” rate. The truth is, though, that they are taking very little off the rate and are only offering you and your family a loan that will force you to borrow again down the road to cover the original loan. These places will happily “roll over” your loan for a fee each week. Eventually you are in a debt trap
The other thing that makes military personnel vulnerable to these payday loan traps is that they are often young and inexperienced with money. Then, as debt builds up, the indebted military personnel are embarrassed to admit their problem to their CO and end up continuing to borrow and pay only on interest and roll over fees. They are fearful for good reason, since failing to repay a loan violates a number of military codes that can result in jail time and or court marshal.
So what is the answer? Many of these fake military loan companies are being kept away from military bases. Additionally, they are being forbidden from using names that imply affiliation with the military, which is a common practice with these military loan payday check cashing stores.
In the end, it is up to you to beware. It is a good rule of thumb to simply avoid any payday loan store, but any that offer special military loans are likely just targeting you or your base for a cycle of debt you want no part of. If you have financial problems, many bases are even offering financial advice to young recruits. So ask for help, but avoid the trap that is payday military loans.
Personal military loans are available at reasonable interest rates if you know your facts. Army Loans or Air Force Loans are a great way for military members to get their needs met.
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