Payday lenders are found around military bases throughout the country. These lenders offer high-interest, short-term loans for emergency situations such as car repairs. If the loan is rolled over repeatedly, however, the effective APR can skyrocket – for a full year, the APR can be 300% to 500%. Instead of spending exorbitant amounts of money to pay for a loan, each branch of the armed forces has an Emergency Relief Fund with NO interest to assist troops with those same needs. These organizations offer interest-free loans to cover emergency situations including food, rent, utilities, medical expenses, car repair, emergency travel, and more. If a loan would cause undue financial hardship, it may be turned into a grant, which wouldn’t need to be repaid, or a combination loan and grant. For those who meet certain eligibility requirements, aid societies also provide educational scholarships for children and spouses, including surviving spouses, of military personnel.
|Army Emergency Relief
|Air Force Aid Society||www.afas.org|
|Navy-Marine Corps Relief Society||www.nmcrs.org|
|Coast Guard Mutual Assistance