Military members have the same needs as ordinary citizens and are as exposed to complicated financial problems and emergencies as we are. Moreover, the family members of military have a greater risk of losing a parent or spouse and therefore are subjected to serious financial complications. Thinking that it’s easier for military members to manage their family budgets is far from truth, because they may face the same situations like the rest of us and could face an urgent need in fast cash.
That’s why many military members use payday loan service shops as a source of quick finance solutions. When used properly, payday loans can provide a good aid in complicated financial situations. However, there are some differences between civilians and military when it comes to the rates of the shirt term loans. When ordinary people receive a cash advance it can come with a high price tag, resulting in a $40 fee for a $200 loan. The military are protected from such situations by the federal legislation, which sets a 36% interest rate cap on cash advance for military and their family members. This means good savings compared to three-figure APR percentage reported in the majority of cases with civilians.
This interest rate cap was introduced recently to minimize the influence of payday loan shops on military members. Cash advance providers have used the military as one of the main sources of their revenue and you could see numerous shops established around military facilities all over the countries. With many military members facing debt while using fast cash services inappropriately the officials felt that things had to be changed. And while some states have completely banned cash advance services to military members on their territory, the federal law has provided a more flexible regulation to the issue.
You have to keep in mind that only the military and their family members are subjected to that interest rate cap. Some individuals have already tried to use this advantage but were unsuccessful. To use the 36% advantage a person has to prove that he or she is military or a family member to military. This usually requires additional paperwork when opting for cash advance, the documents being closely studied at the cash advance center. Keeping a good credit rating is important for military members and it is a matter of national security for the government to protect them from financial risks in a flexible way.