People in need of a short term loan for emergency situations should be aware that companies advertising Military payday loans, payday loans, quick cash between paydays, etc. charge at least $10 per $100 borrowed. This is equivalent to an APR (annual percentage rate) of 261%, as a point of comparison, the average APR for credit cards is 14%. Even for a person with no credit or bad credit, there are other options. For Military personnel and their families in an emergency or unexpected situation, between paydays, there are much better options than a “payday loan”.

Army Emergency Relief (AER) and Air Force Aid Society (AFAS)

The Army Emergency Relief fund provides interest free loans or grants to active duty and retired Army personnel. The service is also available to members of the National Guard and Army Reserve, as well as dependents of active, retired or deceased soldiers. The AER can help with food, rent, utilities, emergency travel, vehicle repair, funeral expenses and many other emergency needs.
For Air Force personnel and their dependents, the AFAS was set up to help with one-time and short term emergencies. The AFAS will review all requests for assistance and try to help whenever possible.

Navy-Marine Corp Relief Society and Coast Guard Mutual Assistance

This society provides relief to Navy and Marine Corp service members and eligible family members. They list all common emergencies and also mention child care expenses and other unforeseen family emergencies. The CGMA is unique in that they may also be able to provide assistance to civilian employees of the Coast Guard, as well as active, retired, reserve and auxiliary members of the Coast Guard and their family members. In addition to emergency funds, the CGMA also offers education and debt management services. The reasons and eligible persons mentioned above are only examples of the long list of emergencies that each of these society attempts to help with. It is recommended that you contact these societies directly for complete information.

Other Options

If you are in the military, but for some reason are ineligible for any of the above services, the American Red Cross may be able to assist you. Consider a small loan from your credit union, before applying for a payday loan. If you need cash to pay an existing credit card bill, call that creditor first, the cost of a late payment fee may be less than the costs associated with a payday loan. Utility companies will generally grant a short term extension on a due date if requested. Many creditors will work with you if you call them and let them know about your difficulties.

Last Resort

If you have considered all other options (even a loan from family or friends), and are still interested in a Military Payday Loan, shop carefully. Compare the offers of several different companies. The cost will be at least $10 per $100, but could be more. Read the fine print and look for the lowest APR and finance charges. Borrow only as much as you can pay back next payday without cutting yourself short again. If you have to “roll” these loans over from one paycheck, to another, to another, you can end up paying as much as $60 to borrow a hundred.