|
Quick cash stores are expanding rapidly in most American cities, and there are few places where they are more likely to be found than near military installations. The reason is simple economics - they are there because they make money being there. The average soldier is not well educated and does not earn a lot of money. These two things combine to form a dangerous situation where soldiers frequently find themselves unable to make ends meet. In order to tide themselves over until the next paycheck, they frequently take out cash advances. The problem is that they often fail to realize that borrowing money at 400% per year can lead to an endless circle of debt. The problem has grown so great that the military considers payday advances to be one of the greatest threats to the armed forces as a whole.
The quick cash industry likes military members because they are often in financial need but at the same time have steady paychecks, which makes it more likely that the loans will be repaid. Unfortunately, this problem is said to cost the military $1 billion per year and worse, it affects military preparedness. Soldiers who are preoccupied with their financial troubles are distracted from their main obligations, which is to protect us in times of war.
Even worse is the fact that Federal and state legislators tend to look the other way. The current administration in Washington is very much pro-business and has a tendency to simply let these companies do as they may. The fact that the industry as a whole is wildly profitable undoubtedly has something to do with that. While the state of Arizona is looking into regulating these industries, other states with military bases, such as Utah and South Dakota, have actually loosened their banking laws in recent years, which only makes the problem worse.
Support the troops? The cash advance industry does not.
|
