{"id":7973,"date":"2021-11-22T17:21:24","date_gmt":"2021-11-22T17:21:24","guid":{"rendered":"https:\/\/clients.firstfinancialsecurity.com\/FFSBB\/?p=7973"},"modified":"2022-02-24T13:56:21","modified_gmt":"2022-02-24T13:56:21","slug":"how-military-service-members-can-avoid-predatory-lenders","status":"publish","type":"post","link":"https:\/\/clients.firstfinancialsecurity.com\/FFSBB\/2021\/11\/22\/how-military-service-members-can-avoid-predatory-lenders\/","title":{"rendered":"How Military Service Members Can Avoid Predatory Lenders"},"content":{"rendered":"\n

Predatory lenders have targeted military service members for many years, with payday loan establishments often setting up shop near military bases<\/a>. The financial lives of service members can be difficult to navigate \u2014 as Americans face a tough time of unemployment, inflation and market volatility, military service members also have the added stress of deployments and relocations. This puts them at unique risk for predatory lenders who market high-interest payday loans as a short-term fix for their financial worries.<\/p>\n\n\n\n

Careful budgeting can only go so far in the face of an unplanned emergency expense. At times like these, payday loans can look tempting \u2014 indeed, a 2019 Texas survey found 45%<\/a> of veterans have used these payday loans to cover their finances between paychecks. The high fees and short rollover periods built into payday loans can easily spiral into a debt snowball, making the loan worse for service members than the problems they were meant to solve.<\/p>\n\n\n\n

For example, a fee for a typical payday loan can be $15 on every $100 borrowed, according<\/a> to the Consumer Financial Protection Bureau. These high fees stack with their short payback periods and late fees, which explains why 75%<\/a> of payday loans go to those who have already taken out 11 or more loans in that same year. Loans are usually due in two weeks, and lenders often have direct access to the borrower\u2019s checking account, all but ensuring a debt trap.<\/p>\n\n\n\n

Every military service member ought to know the dangers of payday loans. Arm yourself with the facts and know your lending alternatives \u2014 then, you or your closest service member can avoid a sticky financial situation.<\/p>\n\n\n\n

Predatory lenders and payday loans often have high fees and short rollover periods that can easily spiral into a debt snowball.<\/em><\/strong><\/p><\/blockquote>\n\n\n\n

Alternatives to Payday Loans<\/strong><\/h5>\n\n\n\n