National Foundation for Credit Counseling Survey Reveals Financial
Striking differences between military population and general population noted
Washington, DC – In recognition of Military Appreciation Month, a new financial survey of military personnel was released today. Commissioned by the National Foundation for Credit Counseling (NFCC®) and sponsored by Pioneer Services, a division of MidCountry Bank, the survey revealed some troubling financial behaviors among servicemembers.
Consider the following survey findings:
Seventy-seven percent of servicemembers have financial worries, and more than half (57%) say they are very worried about the potential loss of income and job security resulting from defense cuts and downsizing;
- Twenty-eight percent are now more worried than they were 12 months ago about how their financial situation will affect their future in the military;
- A majority (55%) believe they are ill-prepared, financially speaking, for an emergency;
- Three out of five servicemembers who have taken a loan in the past 12 months say limited lending options required them to look for alternative, non-traditional lenders to meet their financial needs; and
- Nearly half of servicemembers (49%) have taken out a loan in the past 12 months, which included sources such as a credit card (18%), friends and family (13%), or cash advance or payday lender (6%).
“Men and women in uniform face many challenges and daily sacrifices while serving our country. Financial concerns shouldn’t be one of them. The NFCC is committed to ensuring that members of the military, veterans and their families have access to the financial tools and information they need to live a financially stable life,” said Susan C. Keating, NFCC President and CEO. “NFCC member agencies are proud to assist military personnel through the Sharpen Your Financial Focus program which includes a dedicated military-specific component.”
When looking at the military population’s financial behaviors against the general U.S. adult population as revealed in the NFCC’s 2014 Consumer Financial Literacy Survey, the following were among the differences noted:
Twice as many (28% servicemembers vs.14% general population) have applied for a new credit card in the last 12 months;
- Almost 6 in 10 (58%) carry some credit card debt from month to month vs. the general population where only about 1 in 3 (34%) carry over credit card debt every month;
- Twice as many have paid less than the minimum required payment in the last 12 months (6% vs. 3%); and,
- Servicemembers were more than twice as likely to obtain a cash advance from a credit card in the last 12 months (5% vs. 2%).
“Unfortunately, the survey findings indicate on-going financial concerns for many military families,” said Joe Freeman, the CEO of Pioneer Services. “We’ve worked with servicemembers for more than 25 years, so we know they are responsible borrowers who deserve financial options. It is incumbent upon all of us to ensure that military families have access to the same credit options many civilians take for granted, and to financial education resources that help empower them to make the right decisions.”
The full survey, as well as an at-a-glance snapshot of key survey data in the form of an infographic, is available in the Newsroom under Surveys on the NFCC website, www.NFCC.org.