subject: A Cash Advance For Military Personnel? [print this page] When it comes to financial debt, the military doesn't mess around! Active members already put their lives on the line to protect us civilians so putting their finances on the line as well is just not an option. Being a member of any branch of the military means keeping your budget in check and your finances under control.
If you are in the military, you are held to certain financial restrictions that would normally be available to you if you were a civilian.This is to avoid servicemen and women from falling into troublesome debt that may affect their families and their ability to perform their duties to the fullest extent.
The Servicemembers Civil Relief Act (SCRA) was established on December 19, 2003 by the U.S. President as a rewrite to the Soldiers and Sailors Civil Relief Act of 1940. This act offers:
*Protection from eviction if personnel are paying less than $1200 a month in rent and the right to terminate a lease should they be relocated for more than 90 days.
*A 6% cap on credit card interest rates.
*Protection from military spouses having to pay taxes working in a state other than that of permanent residency.
*Access to more and better life insurance options.
Military banks offer credit cards and loans to its service members with lower than average interest rates in an effort to help personnel stay out of debt. Loans and credit cards taken out through a military bank, though, are not subject to debt relief programs. Getting a cash advance as a service member is not an option because the interest rates on these types of loans exceed the guidelines of the SCRA. Military spouses are included in these guidelines and should avoid doing anything to cause further debt in the eyes of the military.
Members of the military who have found themselves in unsalvageable financial situations risk being discharged for indebtedness. Military personnel have access to financial advisors and should take care to keep their chain of command informed in regards to their financial status. Indebted personnel may have their security clearance revoked as a result of being considered a security risk. Criminal activity to pay for debts, bribery in regards to the individual being desperate for money, and selling secrets and/or equipment as a way to acquire some fast cash are all reasons for revocation of one's security clearance. Not too mention the stress being in debt can put on a service member, both active and non-active duty.
