• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

US Military

  • Branches
    • Army
    • Navy
    • Air Force
    • Marine Corps
    • Coast Guard
    • National Guard
    • Air National Guard
    • Find A Recruiter
  • Find A Recruiter
  • Military Benefits
    • GI Bill
    • VA Loans
    • Military Scholarships
    • Military Friendly Colleges
    • Money
  • Jobs
    • Military Pay Chart
    • Veteran Jobs
    • Civilian Jobs
  • VA Loan Rates
  • Military News
    • Top News
    • Benefits
    • Careers
    • Education
    • Featured Columnists
      • Larry Fowler
      • Scott Ostrow
      • Kim Lengling
      • Dr. Sasha Toperich
      • Rick Stewart
  • USM Shop
  • GI Bill
  • VA Loans
  • Military Scholarships
  • Top Military-Friendly Colleges and Universities in America

Army Warns: Soldiers Beware of Predatory Lenders

August 25, 2014 By admin

WASHINGTON (Army News Service, August 25, 2014) – “Need money fast? Need a new car? No problem! Instant approval for members of the military!”

While advertisements for immediate cash and merchandise are appealing, service members can land in hot water if they are not careful.

Soldiers, especially junior-enlisted members, are targets for high-interest car loans, or payday loans with exorbitant rates, said Maj. Emma Parsons, Department of the Army banking officer.

“There are a lot of predatory lenders out there,” she said.

Soldiers should proceed with caution, she said, noting that the Consumer Financial Protection Bureau says a small-dollar payday loan could equate to an annual percentage rate of nearly 400 percent.

Unaffordable debt coupled with service charges and late fees can quickly spin out of control, putting unsuspecting service members under a mountain of debt, she said.

That is why it is so important for Soldiers to have a plan for their money.

Part of the mandatory services that on-post financial institutions provide are counseling and education partnered with Army-trained personal financial managers, Parsons said.

Trained financial counselors are present on every installation, she said. Soldiers are urged to meet with a counselor and utilize these free services, to help avoid the pitfalls that would put them in financial straits.

Talking to the financial expert can put the situation in perspective and help the service member navigate away from avoidable problems such as spending beyond one’s means and signing on to a quick loan loaded with fees and a high interest rate, she said.

While emergencies do arise, counseling can guide a service member on how to manage money and what are the best options when those situations do occur, she said.

FINANCIAL READINESS

Falling into debt impacts readiness and morale, and directly affects the work performance of the Soldier, Parsons said.

Soldiers who become delinquent on their debts could have their wages garnished, and risk losing a promotion or a high-level security clearance.

For the most junior Soldiers, this might be the first time they are receiving a paycheck, said Maj. Helen Thomas, the banking liaison officer at Fort Bragg, North Carolina.

It’s important they spend wisely and not fall into the trap for quick money or gleaming new merchandise they don’t need and can’t afford.

“I see it all the time. Young Soldiers come to us for counseling after they’re in a financial bind; we want to help them before the problem happens,” she said.

“Let’s catch them before they make those decisions,” she said.

Filed Under: Army, daniel articles, Money, Top News

[related_posts_by_tax format="thumbnails" limit_posts="100" image_size="sidebar-thumbnail" public_only="true" posts_per_page="6"]

Primary Sidebar

USMilitary.com Career Guide

Sign up to receive USMilitary.com email updates and to hear what's going on with all military branches!

Featured Columnists

Larry Fowler

Larry Fowler is the publisher of USMilitary.com Network one of America's premier privately owned

Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Scott Ostrow

Lt Col (Dr.) Scott A. Ostrow retired from the Air Force in September 2005 and has been teaching

Must Read: The Truth About The ASVAB Test Prep From The Man Who Wrote The Book

Kim Lengling

Kim Lengling is a Air Force Veteran whose passion is to help support veterans and their

The Moving Wall: Women Who Paid The Ultimate Price For Their Country

Dr. Sasha Toperich

Dr. Sasha Toperich is the Senior Executive Vice President at Transatlantic Leadership

Sarraj’s Dangerous Dance With Power

Rick Stewart

Rick Stewart is a former United States Air Force Survival, Evasion, Resistance, and Escape (SERE)

Announcing American Patriots Unsung Magazine

Nathan B. Nelson

Capt (ret) Nathan B. Nelson is the Director of Military Affairs for the 1st Congressional district

Three Critical Considerations for Every Veteran Prior to Leaving Active Duty

Laquan Daniels

Laquan Daniel is a military recruiting expert with over 17 years of specialized experience in the

Important News For Military Transitioning Veterans

Veteran Buzz

Hire Military Veterans

Which Companies Are Most Likely to Hire Military Veterans?

July 30, 2018 By Ben Ehinger

High-Paying Jobs for Military Veterans

5 High-Paying Jobs for Military Veterans

July 2, 2018 By Ben Ehinger

High Paying Jobs Not Requiring a Degree

June 28, 2018 By Ben Ehinger

Footer

  • Advertise With Us
  • Privacy Policy
  • Write For US
  • Link to Us

Recent

  • The Unraveled Pandemic Of Navy SEAL Posers
  • Apache Attack Helicopter Pilot: To Maintain a Watchful Eye, “Above the Best”
  • A Few Benefits You May Not be Aware of As a Military Child
  • Experts Predict Artificial Intelligence Will Transform Warfare
  • Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Search

© Copyright 2021 USMillitary
Web Design by Goebel Media Group


THIS IS A PRIVATE WEBSITE THAT IS NOT AFFILIATED WITH THE U.S. GOVERNMENT, U.S. ARMED FORCES, OR DEPARTMENT OF VETERANS AFFAIRS. U.S. GOVERNMENT AGENCIES HAVE NOT REVIEWED THIS INFORMATION. THIS SITE IS NOT CONNECTED WITH ANY GOVERNMENT AGENCY.

​Tips
Discounts
News

​

​

Join the USMilitary.com Newsletter Today!

By subscribing you agree to our terms & conditions

x