Army Takes Problem with Payday Advances. In fact, these loans are dangerous and harmful, needing sky-high rates of interest and frequently giving individuals in to a downward monetary spiral.

Army Takes Problem with Payday Advances. In fact, these loans are dangerous and harmful, needing sky-high rates of interest and frequently giving individuals in to a downward monetary spiral.

Fort Myer, Va. (Army Information Service, Aug. 21, 2007) – everybody’s heard the familiar radio places cajoling people to simply take out an online payday loan, which will be reimbursed whenever your paycheck comes. It appears effortless sufficient.

In fact, these loans are dangerous and harmful, needing sky-high interest levels and frequently delivering individuals into a downward economic spiral.

The Defense Department considers lending that is payday associated with top 10 key problems impacting the caliber of life of Soldiers, and a Pentagon report summary posted regarding the Center for Responsible Learning’s internet site estimates that about 17 % of servicemembers utilize pay day loans.

President George W. Bush finalized the 2007 nationwide Defense Authorization Act in October 2006, which takes impact this October. The legislation caps interest levels for army workers at 36 % and prohibits the usage of a check that is personal other approach to access a debtor’s banking account.Continue reading