WASHINGTON–( COMPANY WIRE )–June 28, 2006–Consumer Credit analysis Foundation circulated a research today showing that less than 13percent of armed forces enlisted workers took down an online payday loan within the just last year. The study revealed that enlisted personnel usage short-term installment loans no credit check credit items, such as for example payday advances, infrequently to lessen short-term money requirements and they are expected to repay them a lot more quickly than their civilian counterparts.
The analysis, authored by Charles B. Cushman, Jr., Ph.D., a previous military officer and Associate Dean for the Graduate class of Political Management at George Washington University, and William O. Brown, Jr., Ph.D., Professor of Finance at University of new york – Greensboro, could be the very first systematic study of enlisted armed forces workers that addresses their financial circumstances and attitudes toward short-term credit.
The findings are significant:
— just a tiny small fraction — less than 13% — of armed forces enlisted workers have experienced an online payday loan when you look at the this past year. Because of the reasonably low default that is overall for such loans, the claims of some opponents of payday lending that payday advances really are a hazard to army readiness be seemingly unsupported.
— armed forces enlisted workers who may have had pay day loans repay them faster and they are more prone to stay away from financial obligation than their civilian counterparts: 49% of military enlisted payday-loan borrowers report they had no more than four loans in the last year (compared to 65% of the general population) that they have used a payday loan no more than twice in the last year (compared to 16% of the general population of payday borrowers); 79% said. […]