By Carl Surran
Military Families: Juicy Targets
Summer 2004
Servicemembers who dodge bullets and bombs on the battlefield have a different enemy at home: scammers who prey on the families of America's active-duty forces and veterans.
Drive along routes leading to most military installations and notice the many signs advertising quick cash and payday loans. Low incomes and frequent deployments make military families juicy targets for scam artists, who know service members receive regular paychecks. The standard expectation for service members to maintain orderly lives puts them at risk because they may seek advance-fee loans when experiencing financial troubles. But military families often are victimized because they lack experience in managing money.
Retired Navy Capt. Bill Kennedy, who works with military men and women at a branch of the Navy-Marine Corps Relief Society in Mayport, Florida, maintained that one to three servicemembers come to him each week for help after falling victim to a money-lending scheme. Kennedy said interest rates in these schemes average 400 percent.
Many military families don't realize that they can get credit at a much lower interest rate through credit unions and banks. Shop carefully and compare offers. Look for the credit offer with the lowest annual percentage rate, and always know the terms before deciding on a loan.
Most important, resist the urge to get an advance on your paycheck! Try your best to live within your means!
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