Companies that make quick loans – for example, payday and car title lenders – sometimes charge extremely high interest rates. They can be very expensive ways to borrow money. But the Military Lending Act says payday and other types of lenders can only charge up to 36% for servicemembers and their dependents.
- Can you get money from anywhere else? Consider a loan from your bank or credit union. Even using a credit card may be better than a payday or title loan.
- Shop around for the best deal you can get on the APR, fees, how soon you have to repay the money, and what happens if you don’t pay on time.
- Facing financial trouble? There’s help for you. Talk to your PFM about your choices. Do you need more time to pay your bills or a possible advance on your paycheck? Do you want to talk with a certified credit counselor about managing your money? Do you want some help from a military relief society? Call DoD’s Military OneSource help line 24/7 at 1-800-342-9647 to discuss alternatives.