Thursday, June 29, 2006

As military payday loan news and opinions swirl, one important fact remained unknown: just how many service men actually apply for these cash advances? 

That question has now been answered. The Consumer Credit Research Foundation released a study this week showing that fewer than 13% of military enlisted personnel have taken out a payday loan in the last year. Moreover, these individuals are more likely to repay the amount borrowed o on time than their civilian counterparts.

Given the relatively low overall default rate for these payday loans, the claims of some opponents of payday advance lending - that payday loans are a threat to military readiness - appear to be unsupported. Let's take a closer look at the survey results:

• 49% of military enlisted payday loan borrowers report that they have used a payday loan no more than twice in the last year (compared to 16% of the general population of payday borrowers)
• 79% said they had no more than four online cash loans in the last year (compared to 65% of the general population)
• Military enlisted payday loan borrowers choose to incur payday loan credit because of the simplicity and speed of the application process; in 87% of cases, the geographic convenience of the lender was not a factor in their choice
• Military enlisted personnel overwhelmingly (83%, vs. 44% of the general population) consider themselves to be financially secure

While it's still important to educate these heroes as far as military payday loans go, it appears as though the problem may not be as widespread as many tend to believe.

This entry was posted on Thursday, June 29th, 2006 at 7:06 am and is filed under National.