Military Family Solutions

The brave men and women who serve their country proud in America’s Armed Forces are truly owed a debt of gratitude from us all. Often we forget that, despite their courage under fire, these men and women still have families and lives like the rest of us. And they too are not immune from financial worry.

The government provides a few monetary solutions to military men and women, including a decent salary, healthcare and education options. However, that same government has also attempted to close the door to military personnel via payday loans.

A payday loan is a short-term loan offered to anyone meeting slim criteria, which could be a car title or simply having a job. These loans are for relatively low amounts, usually $100 on the low end and $1,000 on the high end. And due to the risk assumed by the lender, the interest is rather high and the repayment amount is usually steeper than long-term loans to scale.

These loans help out people from all walks of life when they’re in a pinch and need emergency funding. Due to the FY 2007 Military Authorization Act, though, members of the military are ineligible to receive military payday loans.

Technically, lenders are forbidden to grant loans to military members that require car titles as collateral, charge 36% interest or higher, or have any sort of service charges, renewal charges or other associated fees.

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However, some payday lenders have worked to set up sites specifically for men and women of the military. Knowing that military members are certainly deserving of financial relief, lenders have tweaked their specifications to skirt the shackles of the 2007 Act.

Loans taken from these specific lenders will have lower interest rates, will not require a car title and will not impose renewal fees or other such charges. Any military member over 18 and with a checking account can receive a military payday loan.

We all hope these brave men and women never fall into financial worry, but it’s good to know that some lenders out there are showing more heart than business savvy when dealing with members of the military.

In Issues Jul 5th, 2010 | No Discussion |

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