Payday lenders target military personnel

No one is safe from schemes of payday lenders. Even military personnel fall prey to them. One military family, with savings in Mississippi, decided to share their story to illustrate why payday loans may appear to be a viable option during times of financial troubles. However, there are better solutions. Another solution that can actually offer long-term security is personal bankruptcy.

People in Mississippi, including military personnel, have been vulnerable to trying financial challenges in recent years. One military family even shared their struggles with the public. They recall when Hurricane Rita hit. Power outages made their financial resources unavailable to them at any of their bank's Mississippi branches. As a result, they decided to use the military's army emergency relief. The relief provided them with one check to cover whatever expenses they could. They had little flexibility to ensure that their basic needs were met.

This is the reality for many military personnel living in both Mississippi and throughout the rest of the United States. They often turn to short-term relief, like emergency relief and payday loans. Payday loans actually thrust the borrower into further debt that is subject to high interest rates. Taking out these loans is actually one of the worst ways to tackle financial problems.

Recognizing the pitfalls of payday loans, the government actually implemented the Military Lending Act. This Act targets payday lenders and tries to make it more difficult for them to target military personnel. Not surprising, these lenders have found legal loopholes in the Act and continue to take advantage of military personnel as well as civilians.

There are steps that military personnel, as well as civilians living in Mississippi can take to help secure their financial futures and avoid the compounding financial troubles caused by short-term relief. In particular, they can file for personal bankruptcy.

To some Mississippi residents, bankruptcy may seem like a foreign and confusing legal tool. Bankruptcy is actually fairly straightforward. It is an ensured form of debt relief. It helps individuals get rid of their debt and repay creditors without having to take out short-term loans with high interest rates. It immediately discharges some debts and then considers an individual's futures in order to adopt a workable repayment plan. Bankruptcy also reveals that payday loans and other emergency relief are not the only answers.

Mississippi residents facing debt should not stress. Experienced bankruptcy professionals are available to help individuals determine if bankruptcy is the right solution for each individual's unique set of circumstances.

Source: Marketplace.org, "Why military personnel fall prey to payday lenders," Mitchell Hartman, May 17, 2013

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