Military Loans: Avoid the Payday Debt Trap
The Center for Responsible Lending estimates that predatory payday lending costs American consumers $3.4 billion per year in excess fees. The payday lending business model is designed to cultivate repeat borrowers. Rather than filling a need for short-term credit, payday loans trap borrowers in escalating debt.
In many ways, soldiers are ideal targets for these abusive payday loans. They have a steady income from the government, often with little to spare, at an average of $1,200 per month for new recruits. At deployment time, when military families are faced with extra expenses at home and abroad, they may be more vulnerable to the promise of quick cash from payday lenders.
Learn more about the problems with payday loans to military personnel.
Read one soldier's story in the ArmyTimes.com article, High-interest lenders sink troops into debt. Then check out our list of resources to learn about the scope of the problem with military loans from payday lenders, and what can be done.
Content provided by the Center for Responsible Lending.