The debate over payday loans in the military

A new study released yesterday challenges common notions about payday lending and military personnel. According to the report by the Consumer Credit Research Foundation, fewer than 13% of military personnel have used a payday loan in the last year. The report also found that:

• Military personnel are more likely to repay their payday loan quickly and to remain out of debt than civilians.
• Military personnel consider themselves to be very financially stable. 83% of military personnel feel secure about their money vs. 44% of civilians.
• Geographic convenience of payday lenders was not shown to be a factor in military personnel decisions about borrowing.

This report strikes down many of the central claims used by opponents of the payday lending industry. For example, the Center for Responsible Lending reports that military personnel are targeted by abusive payday lenders and that payday loans negatively impact military readiness.

Not being involved in the military myself, it is hard to gauge  which side has a more accurate view of payday lending.  Let's open this issue up for debate. Do you think the military is hurt by payday loans? Or are these short term loans simply providing a needed financial service to personnel. Weigh in with your feedback in the comments section below.

Comments

[Emma]

Those statistics don't surprise me. There is a common misconception that military personnel are targeted by that industry, not that they aren't, but this particular audience is not biting. I believe one of the main factors is that debt problems, for a member of the armed forces, can lead to dishonorable discharge.

[P]

I dont thing that military people will pay loand fatsre than their civilian countyer parts. They cna only replay if givernmnet gives them extra allwoances to do so

[Payday Loan]

I dont thing that military people will pay loand fatsre than their civilian countyer parts. They cna only replay if givernmnet gives them extra allwoances to do so