Have you heard about the military lending cap?

[Perd Hapley]

One great thing about deployments, besides the extra money coming in, is that there's usually not that much to spend your money on.  That didn't stop one guy in our unit from racking up a few thousand in debt while in Bosnia.  All of it on dart games, cappuccinos, pizzas, video games, movies and related hardware (TVs, VCRs) from our on-base PX.  He met some girl online, and she paid off all of it.  He married her just days after we got back to Fort Hood.  And he was an ugly old coot, too.   

[Bogie]

Yeah - when you're living on post, it's all about disposable income. Best thing to do is to have as much taken out as possible BEFORE you see it... And if you want something, pay cash.
 
Get together with your buddies for things - One spot I was at had a car. It was licensed, insured, and all that. Keys were under the visor. And it ran, most of the time. And if it needed anything, you were expected to chip in. Of course, this was for a group of the higher educated MOS folks... Our barracks/dorm's parking lot was radically different from a nearby infantry barracks parking lot - Those guys had the disposable income, and knew it... Corvettes, big motorcycles, etc., etc...
 

[lee n. field]

This isn't enough money to be worth it for payday loan places.  The moment this took effect, the ads stopped in our base papers, and I've noticed fewer places downtown.

Can't say I'm sorry to see them go.

[Firethorn]

Get together with your buddies for things - One spot I was at had a car. It was licensed, insured, and all that. Keys were under the visor. And it ran, most of the time. And if it needed anything, you were expected to chip in. Of course, this was for a group of the higher educated MOS folks... Our barracks/dorm's parking lot was radically different from a nearby infantry barracks parking lot - Those guys had the disposable income, and knew it... Corvettes, big motorcycles, etc., etc...

I always thought it was interesting that our MSgt, married, never divorced, wife works, drives a geo metro.  Several of our MSgts are like that.  Meanwhile - a number of the younger troops are running around in new trucks and SUVs, or moderately expensive sports cars.

Sure, I bought my car new - but it was an inexpensive new car, and I'm still driving it five years later, and I do my own maintenance.  I LIKE the extra money in my pocket with no car payment(but it ends up in savings).

[French G.]

Not that I'm rich, but my wife and I own our 2nd home and I drive a '91 F-150 complete with bullet hole in the side. I wish I had the new car money the E-3s seem to have.

[vernal45]

Unless this loan shark places are holding guns to the GI's heads, I dont see a problem.  No one is forcing them to take out a loan at 400%.  Some times being stupid, 400% loan, should hurt.

[Firethorn]

Unless this loan shark places are holding guns to the GI's heads, I dont see a problem.  No one is forcing them to take out a loan at 400%.  Some times being stupid, 400% loan, should hurt.

Agreed, right up until the military has to send somebody else to the desert in the guy's place because he has to make court appearances, etc...

I'm all for 'full disclosure' clauses that would make it fairly easy for said troops to find a better deal.  Still, I think that mandatory economics/financial management training should be mandatory.  Well, let them test out of it if they want.

edit:  Didn't notice initially that this was kicked over to the round table.  I figured it'd belong in politics because it's a law, and the consequences thereof.

[Phantom Warrior]

Still, I think that mandatory economics/financial management training should be mandatory.

Just like all those sexual harassment and substance abuse classes that have been so effective, huh?

[Firethorn]

Just like all those sexual harassment and substance abuse classes that have been so effective, huh?

Or suicide awareness?  The USAF is claiming that suicides have dropped 50% since they started the program.

At least a financial management class will teach useful skills.  Those who chose to ignore it operate at their own peril.

[roo_ster]

I'd be leary of depending on Tricare for dependents, but I never had to use it so I'm not knowledgeable about it.

One reason I said "No mas," after getting tore up was because I never wanted family to be subject to the .mil health care/insurance system.

[Tecumseh]

Part of the problem is that these companies do everything they can to hide just how much they're going to charge you, and use high pressure tactics while the young enlisted member is in a panicked state because he has an expense that he didn't budget for(because he was running on a razor wire with his pay already).

You definitely have a point there. Fraud is always wrong, but fraud against the poor or unfortunate especially burns me up.

--Len.

Its not fraud.  Its just good business sense.  If your to stupid to read the small print, whose fault is that?  Are you all a bunch of democrats in that you want the government to regulate business? 

Sorry but if the GI is to stupid to realize he is getting ripped off, its not my fault.  As long as they are legal we should have no problems.  High pressure sales tactics and all that are legal so...to bad GI. 

[Len Budney]

Its not fraud.  Its just good business sense.  If your to stupid to read the small print, whose fault is that?  Are you all a bunch of democrats in that you want the government to regulate business? 

Business should never be regulated, but fraud is still a crime. The seller isn't required to give the buyer a free education, but there is such a thing as fraud. In cases where an ignorant person meets an overeager seller, they often dance along that fine line.

--Len.

[Firethorn]

Its not fraud.  Its just good business sense.  If your to stupid to read the small print, whose fault is that?  Are you all a bunch of democrats in that you want the government to regulate business? 

Sorry but if the GI is to stupid to realize he is getting ripped off, its not my fault.  As long as they are legal we should have no problems.  High pressure sales tactics and all that are legal so...to bad GI. 

Believe it or not, but there have been cases where 'fine print' has been thrown out in court because the court determined that it substantially changed the contract, and was deliberately hidden/obfusticated.

IE you're not allowed to put the 'fine print' into that microdot that looks like a period.  Or have your salespeople try to get the 'client/sucker' to skip over that section of fine print, etc...

I disagree with some of the tenants behind the cap.  For one, if they do it for military, they should do it for everyone, but on the other hand, it'd bring back black market loansharking.

I really favor approaching it from the education side - maybe require that they disclose the 'effective annual interest rate'  IE count all fees as interest, calculate over duration of loan, and adjust to annual basis.  That should solve many of the problems.

[RevDisk]

Still, I think that mandatory economics/financial management training should be mandatory.

Just like all those sexual harassment and substance abuse classes that have been so effective, huh?

Actually yes.  Not directly, of course.  But you now know that you're in for a world for hurt if you get caught.

Course, I prefer a more hands on approach.  Had a guy who was sexually harassing a nice young lady in my section.   Before his NCO could properly fill out the counselling paperwork, the gentleman in question fell down a flight of concrete stairs.  Twice.  Some folks apparently do not understand "No means no".  Folks do apparently understand "Not listening to 'No' can lead to compound fractures or high velocity lead poisoning."

[Northwoods]

Yeah - when you're living on post, it's all about disposable income. Best thing to do is to have as much taken out as possible BEFORE you see it... And if you want something, pay cash.

My dad was enlisted in the Army '68-71.  He was lucky in that he spent the whole time in Maryland.  During those 3 years he lived in base housing, ate base food (until he met my mom anyway) and even back then managed to save $10,000.