FORT CARSON, Colo.-In today's economy, one cannot afford to be ignorant about finances. However, people in the military community have taken out loans or agreed to payments without adequate prior knowledge, agreeing to absurd interest rates or deals they cannot afford.
"Since the Army has encouraged Soldiers not to procrastinate in their goals, many Soldiers don't want to procrastinate in their desires," Army Community Service financial counselor Dallas Shrawder said.
Shrawder explained that many Soldiers often buy items they cannot afford and ensure bad interest rates because of it. Soldiers become victims of exploitation when they buy things they cannot afford, falling for low monthly payments with ludicrous interest rate.
"Soldiers will often hear something that is too good to be true, because it is," Shrawder said.
Many people are unaware that it is possible to get an interest rate around 18 percent on a first loan. With a little positive financial history, one can obtain an interest rate as low as 10 percent, Shrawder said. However, in the state of Colorado, an interest rate can legally be as high as 34 percent, so one has to be careful when agreeing on any interest rate. Many car dealers and companies will try to sell the highest interest rate they can.
"There is a difference between ethics and legality, unfortunately," Shrawder said.
To teach Soldiers more about finances, Fort Carson requires that Soldiers take the Day One Army Community Service brief. This 40-minute class covers a multitude of financial sins and gives advice on how to avoid financial pitfalls.
A class on finances might sound less than exciting, but Fort Carson ACS's Financial counselor Del McKitrick pulls in the Soldiers quickly, proving the importance of understanding finances. He starts his class by drilling the Soldiers with tricky mathematical financial questions. McKitrick also covers budgeting, the importance of credit cards, informs the Soldiers how to check their free credit score, and emphasizes his points by clapping twice when he says something especially important.
"I think it's a good class and (McKitrick) includes a lot of diverse background. I think it is very important, especially for younger Soldiers. (ACS) has a lot of programs that I didn't even realize they had," class attendee Capt. Adam Soot said.
McKitrick told stories of several Soldiers who were tricked by car dealerships. He shared stories of Soldiers agreeing to a mixture of absurd interest rates, delivery cost for used cars and ridiculous monthly payments. McKitrick told a half-dozen of car-buying horror stories to open the eyes of the Soldiers, since buying cars is where Fort Carson Soldiers make the most financial mistakes.
McKitrick emphasized how important it is to know what one is signing, whatever it is. He reminded the Soldiers that they are allowed, in fact advised, to take any contracts home and have a second pair of eyes look at them before agreeing to them. He encourages Soldiers to take the contract to ACS before buying anything and staff members will look it over for free.
If a Soldier or Family member wants to make sure he or she is not being deluded in a loan, an appointment can be made with a Financial Readiness counselor who will go over the prospective loan with them. Financial Readiness can be contacted at 526-4590.
Soldiers and eligible Family members can also receive help at the Office of Staff Judge Advocate, which can help them review a prospective loan. The JAG office dedicates Monday and Thursday afternoons entirely to walk-ins from 12:30-5:30 p.m. You can also make an appointment at 526-5361.
If a Soldier or Family member is already in financial trouble or wants to learn more about managing money, Financial Readiness ACS also offers assistance. The office offers a number of classes, including topics on budgeting, debt management and investments for beginners. There are also a number of financial counselors who will work with Soldiers and their Family on a one-on-one basis towards their finance goals.
The goal of Financial Readiness's is to help the military community learn effectual money management and to teach them how to be smart consumers. The office is hosting the Department of Defense Financial Road Show at the Special Events Center Sept. 28-29.
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