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Military payday loans are just like any other payday loans, except without less restrictions, stipulations, or killer penalties. Being in the armed forces means that you should be aware of the military financial guidelines involved with payday loans, however. In the Military Code, it clearly states that soldiers that do not fulfill their financial obligations may be sentenced to clearance, court marshal, transfer, or military discharge. These military payday loans should not be taken lightly, because if you cannot afford them not repay them, they could ruin your military career.

The normal military payday loan is around half of what the soldier brings home in monthly pay. The only thing that is questioned by the soldiers is when they can expect the military payday loan, and can they afford the costs. In the army, the typical military payday loan will arrive in the soldier’s bank account in less than 24 hours, but sometimes circumstances may lead to more time. These circumstances include being stationed in another country, or perhaps being exiled in boot camp or training. In any case, military payday loans do not require a credit check due to the high morals that are set forth by the United States Military code. If the soldiers do not meet their financial obligations to the lender, they will simply be kicked out and lose what is considered their career.

Like normal payday loans, military payday loans are a sum of money equal to your next month’s pay. Each borrower is obligated to pay it off upon the arrival of their next paycheck, however, some circumstances will allow for extended periods with some penalties and fees. These fees could range from 30 to 40 percent of the initial amount borrowed. If the sum is not paid off quickly, the fee amount could add up to be staggering. Although the military seems to have a large say over the soldier’s life, they are allowed to use these loans to anything of their discretion.  The only rule with military payday loans is simple: pay it back, and pay it back on time.

This Financial Services article was written by Uniqua Johnson on 8/28/2008