Payday Loans for Military Personnel: The Good and the Bad | Payday Champion
It’s possible that you haven’t seen that payday loan companies are becoming more widespread in communities and cities all over the United States. Although many states are passing laws and regulations that drastically limit the rates of interest and fees payday loan companies can charge their customers, the public in the majority is unaware of the risks associated with using personal loans that are cash. One of the biggest consumers and users in the field of payday loans are American service members, a majority of whom are in their early years and have no discipline in the area of money managing. Although they are able to use payday loans can certainly serve an important purpose when appropriately utilized, there are a lot of dangers that arise from making use of them frequently.
The typical soldier who is looking for a military payday loan is probably a young person who has recently joined the military and doesn’t need to worry about their credit score or any future credit restrictions. The Army, Air Force, Navy, and Marine Corps do their best to train new recruits on the proper care of their bank accounts as well as credit however, some new recruits are overwhelmed by their newly discovered ability to access payday loans as well as credit accounts. They are able get military payday loans are a lucrative business for some due to the abuse of soldiers who don’t know the best ways to manage their finances, and being aware of the facts will prevent the majority of fresh recruits from making lending decisions that they regret later.
It is important to keep in mind it is true that the military payday loans, like many other high-interest loans, could serve a valid and important function if they are used correctly. If a person with a bad credit score requires fast money to pay for expenses that are urgent, such as housing or medical bills, it is possible that payday loans can provide a quick solution to a difficult issue. However, if people take out payday loans only to pay for leisure expenses, and might have been avoided if they waited for their next payday or the pattern of credit misuse is likely to develop that can take years and many years to get out of. While military personnel is proud of their discipline but they often do not have the discipline to avoid high-interest cash advances that rob them of the cash they’ve made.
It may sound like a straightforward prevention tool, however, the best option for a military member to protect himself from the lures that come with military payday loans is to establish savings accounts. The majority of banks nowadays offer online banking, which allows customers to set up an automated transfer of a specified amount of money from their checking account to separate savings account each month. If you have your military pay directly deposited to the account of your checking account, set an automatic transfer of money into an account for savings and accumulate funds for rainy days without even realizing it. A hundred dollars per month of savings could be a significant amount over the course of an entire year or two and the cash reserve will make it less likely that you’ll be enticed to take out another military payday loan.
As we mentioned the service members display an incredible amount of commitment and discipline when they are in their duty. It’s actually a simple task to incorporate that discipline into our lives at home and in our financial life, as well. In taking responsibility for our financial security it is possible to get rid of the numerous risks associated with high-interest payday loans and increase our ability to spend responsibly. There are bad and good in army payday loans, but if you or your family members aren’t in a situation in which urgent funds are required then you’re better off not relying on the payday lender and using your good credit and savings account to get by.