Payday Loans Target Military Personnel

Payday Loans Target Military Personnel

Payday Loans Target Military Personnel
It's tough being a​ soldier,​ especially in​ a​ time of​ war .​
Being a​ member of​ the​ military during wartime means long time away from your home and your family .​
For those that aren't overseas,​ there is​ the​ constant concern that combat may soon be in​ your future .​
Being a​ soldier is​ a​ difficult and stressful job and most Americans have tremendous respect for those to​ choose to​ enlist .​
Unfortunately,​ that respect seems to​ be lost on​ the​ payday loan industry,​ which seems to​ do a​ disproportionate amount of​ its business with military personnel.
If you​ live in​ a​ city with a​ military base,​ you​ won't have to​ look too far to​ find a​ payday loan store,​ which tend to​ cluster near military installations .​
Payday loans,​ also known as​ cash advance loans,​ are short term,​ small value loans that typically range from $100-500 .​
in​ exchange for borrowing the​ sum for a​ period of​ two weeks,​ borrowers pay a​ fee that ranges from $10-30 per $100 borrowed by writing a​ postdated check .​
At the​ end of​ the​ two-week period,​ the​ lender can cash the​ check or​ the​ borrower can settle in​ cash.
Unfortunately,​ many borrowers cannot repay the​ loan in​ two weeks' time .​
in​ that case,​ it​ becomes necessary to​ roll over the​ loan for another two weeks by paying the​ fee again .​
For some borrowers who live paycheck to​ paycheck,​ this can turn into a​ vicious cycle that turns a​ loan of​ hundreds into a​ debt of​ thousands .​
The industry targets military personnel because they have steady paychecks and are more likely to​ repay than civilians in​ the​ same income group .​
as​ a​ rule,​ enlisted personnel are not well paid,​ so the​ likelihood that they will need such loans is​ better than average .​
Furthermore,​ many of​ our soldiers are relatively young people who may not fully grasp the​ ramifications of​ borrowing money at​ interest rates that exceed 400% per year.
Military officials are concerned about the​ problem,​ which negatively affects military preparedness .​
Soldiers that are preoccupied with their financial woes are less likely to​ be prepared to​ face their primary duties,​ which is​ to​ protect us in​ time of​ war .​
While some states,​ such as​ Arizona,​ are trying to​ curtail the​ prevalence of​ payday loan stores near military bases,​ the​ general pro-business stance of​ the​ current administration suggests that a​ nationwide attack on​ this problem is​ not forthcoming .​

While the​ proliferation of​ yellow ribbons on​ cars suggests that most Americans support their troops,​ it​ would appear that the​ quick cash industry does not.

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