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Beware of Scams on Military Personal Loans
There are many lenders claiming to deal with Military Personal Loans. You need to know that most of these lenders are just deceiving customers. What they provide are either payday loans or regular personal loans. The following is what you need to know in order to avoid being misled.
Why Military Loans?
Working for the military forces is a rather stable job with a known fixed income. People working for the forces are the kind of customers a lender is keen on. They represent a rather low risk target and are frequently in need of funding since the wages are usually just enough to meet family needs. If an unexpected situation happens, chances are that there are no savings to cover for the extra expenses and some source of finance will be needed.
It is of course not the only niche available for such practices. There are lenders who seek to lend to people who work at banks or receive their pay by bank deposit since it is easier to have the installments debited from the bank account just immediately after their salary is deposited.
However, those who are members of the armed forces are especially vulnerable to these practices. Lenders claim to offer lower interest rates but usually the interest rate charged is never reduced more than a perceptual point. Then, those who apply are tricked into a vicious circle of debt as the repayment programs are too tight to meet. The borrower will then need to request another loan in order to repay the one due and so on till he will find himself paying only interests and never reducing the loan principal.
Military Payday Loans
The above is especially true when it comes to payday loans. These loans come in small amounts but carry extremely high interest rates, so they are easy to default. You need to be especially careful with payday loans and avoid requesting them by all means.
Personal Military Loans
As regards to personal loans, they may carry high interest rate, but never higher than that of credit cards so you might be able to keep up with the monthly payments. Just donít borrow too much and if you do, donít pay attention to the lenderís advice, seek professional assistance and try to consolidate and reduce your debt.
Private Lenders, Private loans
Also notice that they just call it military loans, most of the lenders who claim to deal with military loans have no relation whatsoever with the forces. This doesnít mean that itís illegal but you need to be aware that the lenders are not backed by the forces or a government agency.
Where to seek finance?
Youíll be able to find proper financial advice within the forces, there are military offices that provide this kind of counseling. If you need finance use the usual channels. There are many lenders and financial institutions dealing with personal loans that will be more than happy to provide finance to a member of the military forces.
About the Author: Bryan Quinn is a financial advisor with more than thirty years of experience in the field of finance who aids people undergoing financial problems and helps them obtain personal loans, home loans, student loans and grants, consolidation loans, car loans and many other financial products regardless of their credit situation. For more smart tips on Payday Loans you can visit www.badcreditloanservices.com and also learn more about other financial options.