Being a soldier is hard, especially during a war. During a war, if you are in the military, you will spend a lot of time away from your home and family. For those who aren't overseas, there is always the worry that they might soon have to fight. Being a soldier is a hard and stressful job, and most people in the U.S. have a lot of respect for those who sign up. The payday loan industry, which seems to do a lot of business with military personnel, doesn't seem to understand this, though.
If you live in a city with a military base, it won't take you long to find a payday loan store because they tend to be near military bases. Payday loans, which are also called "cash advance loans," are short-term loans with small amounts, usually between $100 and $500. Borrowers pay a fee that ranges from $10 to $30 per $100 borrowed by writing a postdated check. In exchange, they can borrow the money for two weeks. At the end of the two weeks, the lender can cash the check or the borrower can pay off the debt in cash.
Many people can't pay back the loan in two weeks, which is a shame. In that case, you have to pay the fee again to "roll over" the loan for another two weeks. Some people who live paycheck to paycheck can get stuck in a cycle where a loan of a few hundred dollars turns into a debt of several thousand dollars.
The industry goes after military members because they get steady paychecks and are more likely to pay back than civilians in the same income range. Most enlisted people are not well paid, so it is more likely than average that they will need these loans. Also, many of our soldiers are still young and might not fully understand what it means to borrow money at interest rates of more than 400% per year.
Military officials are concerned about the problem, which negatively affects military preparedness. Soldiers who worry about money problems are less likely to be ready to do their main job, which is to protect us during war. Some states, like Arizona, are trying to cut down on the number of payday loan stores near military bases. However, the current administration's pro-business stance makes it unlikely that this problem will be dealt with on a national scale.
Yellow ribbons on cars show that most Americans support their troops, but the quick cash industry doesn't seem to.
