Enlisted persons and their families are three times as likely as civilian households to turn to predatory payday loans when in financial distress and also are more likely to carry heavy credit card debt, but new legislation promises to give them alternative choices.
The Military Savings Act, introduced Nov. 20 by Sen. Edward Markey (D-Mass.), creates a pilot program under which financial institutions on base offer innovative products to help members of the Armed Services and their families get on more stable financial ground. The act will promote tools that encourage saving and wealth creation among military personnel.
"When we offer innovative savings tools for our troops, we can help ensure that military families facing unexpected expenses don't have to turn to predatory payday lenders," Markey commented. "As our brave men and women in uniform work to protect us, we must help protect them from financial scams that could drain their savings."