After serving overseas, military service members return home to face a new economic reality that often includes, unfortunately, lenders looking to take advantage of their vulnerability.
These so-called predatory lenders, which pop up around military bases, try to entice or deceive young soldiers into taking out loans that impose abusive or unfair terms.
“Predatory lenders like to prey on young military members because they’re often inexperienced with money, have little to no credit and are usually very excited to spend that first paycheck,” said certified financial planner Tara Falcone, founder of the financial education company ReisUP. She is also a former hedge fund analyst and is married to an officer in the U.S. Navy.
Tara and John Falcone
Source: Tara Falcone
The end result is a loan that carries a hefty price tag, with sky-high interest rates and hidden fees. For example, if a soldier is convinced to take out a payday loan, which requires a check dated for the next payday, he…