Financial Worries Plague Military Members - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Financial Worries Plague Military Members

Financial Worries Plague Military Members

Financial Worries Plague Military Members
Tags: , , ...
May
21
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

They help their fellow citizens sleep at night knowing they’re safe from harm, but many military service members may not be sleeping too well themselves. A recent survey of military personnel revealed that 77% of them have money worries, and more than half are concerned about their job security in the face of government budget cuts.

The National Foundation for Credit Counseling (NFCC) sponsored a survey of 267 active-duty enlisted U.S. military personnel and the results showed that 57% of respondents are very worried about the possibility of losing income due to defense budget downsizing.

Even without a loss of income, many military members are already struggling. Fifty-five percent said they are not financially prepared should an emergency arise, and 28% are worried that their financial situation could impact their future with the military.

Taking on debt to get by

When the NFCC compared this data to their 2014 Financial Literacy Survey, it highlighted the differences between general population and members of the military—especially when it comes to taking on consumer debt.

Military service members are applying for credit at twice the rate of the general population: 28% of military members have applied for a new credit card in the last 12 months, compared with 14% of the general population.

Paying off those credit cards can be a greater problem for military folks than others, as well. Fifty-eight percent of military members said they carry credit card debt from one month to the next, versus 34% of the general population. And twice as many of them have paid less than the minimum payment on one of their credit cards over the last year—6% compared with 3% of civilians.

Taking out a cash advance from a credit card, which almost always incurs fees and high interest rates, is something military service people are more likely to do. Five percent of military respondents said they’d gotten cash advances from their credit cards in the previous 12 months. Only 2% of the general population took out credit card cash advances.

As to other types of debt, three out of five service members said they’ve had to look for non-traditional lenders to bridge the gap between their income and their financial needs. Forty-nine percent have taken out some type of loan in the past year, whether it was a new credit card (18%), a loan from friends or family (13%) or a payday loan (6%). The 2014 Military Finance Survey was conducted online by Harris Poll from April 7 to 15.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Credit Expected to Increase as Well as Risk
Credit Expected to Increase as Well as Risk

Posted: April 11, 2014

Risk managers at North American banks foresee a greater demand for credit leading to increased balances, and increased risk for credit issuers. Continue reading
Survey Reveals Common Money Misconceptions
Survey Reveals Common Money Misconceptions

Posted: April 23, 2014

People think they know more about money than they actually do, according to a new survey highlighting common money myths and attitudes about finances. Continue reading
Detroit Least Debt-Riddled City, Says Experian Study
Detroit Least Debt-Riddled City, Says Experian Study

Posted: May 14, 2014

In a study of the 20 largest major metropolitan areas in the United States, Detroit residents had the lowest average amount of consumer debt: $23,604. Over the last four years, average debt in the economically challenged Michigan city has... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!