Many members of the military find that they need money before the next payday rolls around. Although they end up costing more money, many still fall prey to payday advance loans. Here is how they operate and end up putting you further into debt.
Payday advance works on the premise of “cashing” a post dated check and charging up to 36% of the amount loaned. Therefore, if you “borrow” $100, you will actually have to pay $136. This, besides being outrageously costly, also sets a cycle for further debt. If you borrow $200, then on your next payday, you will be short $272. Chances are you will need another payday advance, and even sooner than you did for the last pay period. Payday advance loans are heavily concentrated around military bases, because they know that military personnel are not very highly paid and often run short of money before payday.
If at all possible, borrow from someone OTHER than a payday loan service. Even though the law caps the percentage they can charge at 36% that is still an enormous amount to pay overall. Payday loans may seem like a short term answer, but they are a long term financial disaster.
Many members of the military find that they need money before the next payday rolls around. Although they end up costing more money, many still fall prey to payday advance loans. Here is how they operate and end up putting you further into debt.
Payday advance works on the premise of “cashing” a post dated check and charging up to 36% of the amount loaned. Therefore, if you “borrow” $100, you will actually have to pay $136. This, besides being outrageously costly, also sets a cycle for further debt. If you borrow $200, then on your next payday, you will be short $272. Chances are you will need another payday advance, and even sooner than you did for the last pay period. Payday advance loans are heavily concentrated around military bases, because they know that military personnel are not very highly paid and often run short of money before payday.
If at all possible, borrow from someone OTHER than a payday loan service. Even though the law caps the percentage they can charge at 36% that is still an enormous amount to pay overall. Payday loans may seem like a short term answer, but they are a long term financial disaster.
