Military Families Struggle With Mounting Debts

DailyFinance
May 30, 2010
Berr, Jonathan

Military families are particularly vulnerable to unscrupulous lending practices and tricky financial situations. Many enlisted persons are young when they join and know very little about money management. Consequently, they become targets of predatory lenders. A 2007 law capped interest rates for payday loans to service members at 36 percent, and the Pentagon is battling to put abusive car dealers under the purview of the proposed new Consumer Financial Protection Agency in hopes of averting the bad deals and high-interest loans extended to military personnel. Increasingly aggressive credit card companies also have become a problem. The U.S. Department of Defense and the Pentagon have initiated programs to improve financial literacy among service members and have increased their scrutiny of lenders and scammers. Additionally, the Consumer Federation of America, the Better Business Bureau, and Military.com have all begun providing services aimed at helping military families with their finances.
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