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Military Payday Loans Are Harder To Get [Legal Issues]
November 18, 2008, 15:24:15
There are times when even people who are proudly enlisted in the Military find that they need a bit of additional money. Simply being a member of the armed forces does not make your budget except from the unexpected problem that can occur and sadly often the families of military members are left to be single parent households that must continue to struggle along in the absence of a parent. Trying to manage finances in these situations can be a huge hassle and are often extremely difficult to complete.
Just as payday loans are great tools to use for most individuals if used responsibly, they can also be wonderful for military members as well. Knowing the way in which you should treat a payday loan is still very important but there are some key differences in military payday loans that should be of important consideration. While most consumers find that the interest rates included in payday loans are quite high, frequently in the triple digit range military payday loans are significantly cheaper.
The maximum amount of interest that can be charged for a military payday loan is capped at just 36% interest. This is a significant savings from the amount that most people are paying which can easily range as high as 391%. While many payday loan lenders add on additional fees to the interest charges, they are not permitted to do so in the case of a military payday loan, which makes the loans significantly cheaper overall. For example, while a payday loan to a typical consumer can cost as much as $15 for every $100 borrowed it would only cost a military member a few pennies.
It is extremely important to realize as well that the family members who are dependent on the military member are also permitted to utilize the 36% interest rate cap. However, if you are not a dependent of the military member you are not able to take advantage of the significantly lower rate. In order to truly take advantage of this rate you need to also frequently show some form of proof that you are eligible to use it, due to many who are not really military will try to claim that they are in able to save money.
Protecting your finances is very important, and for the members of the military it is a matter of national security frequently as well. If the credit report of a military member is damaged, it can affect security clearance and other serious issues as well, which creates it extremely difficult for a military member to perform their job when they are restricted simply over poor financial choices.
By lowering the interest rate that can be charged in a military payday loan to only 36% the government has tried to earnestly protect military members and their families. Reducing the amount of interest that can be charged in this loan have proved that frequently people are able to utilize these loans effectively when the interest rates that are charged are reasonable and affordable. Taking control of your budget is not always easy, but you need to ensure that you properly know the interest rates that you should be charged and for military personnel this is a very important issue. Unfortunately locating a military payday loan is not a simple task because most payday lenders simply will not extend a loan to military personnel due to the limitations place on them.
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