Survey Says Military Families Turn To Unsafe Payday Loans For Help Due To COVID-19 – Action News Jax
Mayport, Florida. – Military families are struggling during the pandemic and it is even pushing some to turn to dangerous payday loans.
Action News Jax Alicia Tarancon reports on an important resource to help families make better financial decisions.
Petty Officer Second Class Shamiah Dee has worked at Naval Base Mayport for over 10 years and remembers needing $ 1,800 for an auto repair.
She turned to the Navy Marine Corps Relief Society for help, and they quickly answered the call.
“I took my car that night, so yeah, it was really quick,” Dee said.
But the organization said not everyone knew what it was offering.
Instead, some military families are turning to unsafe payday loans.
“Some of these payday loans charge 36% interest,” said Barbara Dulaney, director of the Navy Marine Corps Relief Society.
This means that these families are repaying much more than they have borrowed.
According to the National Foundation for Credit Counseling, the use of payday loans has increased during the pandemic.
In 2020, he found that 31% of active duty members had taken out a cash advance or payday loan, up from just 13% in 2019.
Dee says she had family members who got caught up in risky payday loans in the past.
“I kind of learned by watching them go through a mess with this, so it’s kind of like eh… my mom always said don’t do that.” You need help, ask, we’ll find something, ”Dee said.
Last year, the Navy Marine Corps Relief Society assisted over 900 Sailors at Naval Base Mayport and provided over $ 700,000 in financial assistance.
The organization said the best way to spot an unpaid payday loan is to pay attention to interest rates and back off if the offer sounds too good to be true.
The Navy Marine Corps Relief Society wants military families to know there are safer options.
“We provide interest free loans, all we do is provide interest free loans and grants based on the services we provide,” Dulaney said.
For more information on the Navy Marine Corps Relief Society and all the services it offers to military families, you can click on HERE.
Cox Media Group