Payday Loans In Depth - Military Payday Loans

Military Payday Loans - A Case Study

Who makes up the majority of our armed forces? What sort of person signs up for a life in the military? Young, hard working, independent, patriotic people looking for a means to better themselves in life and open up new financial opportunities, careers. The backbone of America in a single phrase, yet this very backbone is suffering extensively from the debilitating effects of military payday loans.

Why military payday loans are good examples of bad lending

Military payday loans is a general term used to define financial operations designed to provide short term, unsecured loans to military personnel. Be it an online payday loans provider with a military theme, or a physical establishment set up beside a base, these lenders are preying on the very people devoting their lives to protect and secure these United States. Is a military payday loan really that bad? Do the lending practices really live up to the hype?Oh yeah, and its all in the numbers:

in a recent study of military bases in Washington state, the concentration of financial operations offering up payday loans was nearly 100% greater within a five mile radius of military bases than in the rest of the state.
in an different - yet closely related - survey of a military base in Texas, 10% of the 10,000 active-duty personnel required financial counseling at the hands of military payday loans.

If these numbers are similar across the country - as many military officers believe - then it is easy to see that these fast payday loans for military personnel are reaching epidemic proportions. Once they leave their posts military personnel are attacked by a barrage of payday advance opportunities disguised and offered under the term military loans. There are no "military loans," the military adamantly frowns upon soldiers seeking financial assistance, not because the military is mean, but because they know the effects payday advance loans can have on people who do not completely understand their obligations.

The impact of payday loans on the military

The greatest impact military payday loans are having is the stress incurred upon the soldiers themselves. Worrying about their financial indebtedness to payday lenders is severely affecting military readiness, and is a serious concern for even the most senior military officials. But aside form overall military readiness, the individual faces severe penalties if they fail to repay a payday loan in specific: a violation of UCMJ Articles 123a and 134, failing to repay a payday advance is punishable by confinement, court martial, loss of security clearance, transfer, or even discharge.

What these are being used for, and who is providing the military advance

Even worse is military payday loans aren't even being used in the true nature of the paycheck advance. Rather than financing financial emergencies as they come up, soldiers are using no fax payday loans as a source of income, a means to make purchases big and small - cars, clothes, nights out on the town. Worse still - and against the very nature of the US Military - the people providing military payday loans are for the most part ex-military personnel themselves! Coming back to their old stomping grounds to abuse the new wave of soldiers. If it can happen in the military, imagine what its doing in the rest of the country. Zounds! Instant military payday loans are craazy!

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