The dangers of military loans availment

Risks, greed and temptation have always haunted us humans. Since the beginning of time, humans have been vulnerable to all of these. In Genesis, Adam and Eve took the risk and ate off the fruit of life to satisfy their greed for knowledge. US Military soldiers risked their lives to preserve peace and propagate democracy. Adolf Hitler, for example, risked everything to satisfy his greed for expansionism. In practically all facets of life, humans took risks for the betterment of society and its environment. If humans could only live from what they earn and be satisfied with what little they have, life would be less complicated and quite tolerable.

If there’s a need, somebody will always be there to supply it. The US military is not an exception, this being a large organization. It has survived on a tight budget approved by Congress, no wonder its personnel simply have a hard time making ends meet. That is why in times of need for additional funds, especially in emergencies or merely just to purchase wants or to pay for utilities, military personnel resort to loans. Businessmen on the other hand are eager to fund these requirements, because repayment is not a problem with the personnel paycheck coming out regularly. This would be advantageous to the borrower if the rates are minimal. However, records show that interest rates imposed could skyrocket to obscene levels. The US government has attempted to regulate such practices, but still it remains to hound credit-bound personnel.

Take for example the military payday loans, where the practice of usury is blatant. If you borrow $100 dollars, it carries with it a $15 dollar fee, the principal being payable on the next payday. Should you fail to pay, it rolls over, and if you reneged for three payments, the total payable amount would already be $160 dollars or a whooping 60% increase. Imagine how this would affect the serviceman’s cash flow. Some lending institutions even charge interest and penalties on a weekly basis. It would appear that these institutions are helping the borrower in the beginning, only to rob clients of their hard earned dollars in the end due to escalating interest charges.

For long-term loan packages, the same strategy is enforced but then again implemented in a more subtle manner but could still get personnel on a debt trap; leaving them with no choice but to keep on borrowing to pay for maturing loans. Lending institutions are sure of their take, for a personnel failing to pay off indebtedness carries the threat of dismissal from service.

Military personnel can always solicit help from the Commanding Officer who in turn can help find a good financial adviser. But most personnel are reluctant to report their financial lapses. The military personnel are at the bitter end of this struggle, what with the laws not really observant to their plight. A new law has already been passed in Virginia curbing in effect the unscrupulous practice of some lending institutions in the industry. Let us hope this law creates a ripple, and subsequently do well to address this cause.