Many people serving in the Armed Forces have a great need for financial help. That might sound odd, given the very important role they play in the defense of our nation, but it is also a sad truth that servicemen and women are not paid very high wages. That is why getting a refund anticipation loan, military style, is not that uncommon for any of those personnel.

First off, let us define what a refund anticipation loan is. When you file for your income taxes, you may find out that you are due a rather nice refund. Well, there are two basic ways of getting that money back. One, you file the return, and then wait for the IRS to send you your check.

The problem with that is that it can take quite a while to get the check. In the case of some military personnel, they often need the money quickly. So, that is where a refund anticipation loan, military oriented, is perfect for them. To get one, the serviceman or woman applies to a company that specializes is such loans.

Now, they do need to be careful when getting such a loan. In general, they are very short-term, and as such they are not covered by many of the laws governing loans. This means that

the interest rate they charge can range from as low as fifty percent, to as high as six or seven hundred! When the tax refund check comes in, typically the entire amount has to be turned over to the lender, and then the interest paid.

This is why a refund anticipation loan, military or otherwise is not something you want to enter into lightly. Plus, there is another issue to consider; if the IRS does not issue a refund in the amount you are expecting, you can end up with less money.

Yet, if you have taken a refund anticipation loan, you will still have to pay back the full amount. So, when trying to get such a loan, check out the company thoroughly, and read over the loan documents very carefully.

The IRS now allows for the filing of tax returns electronically. In the case of such a filing, the tax refund check is generally sent out between ten to fourteen days. So, the need for a refund anticipation loan, military or otherwise, is greatly diminished. Of course, in the case of military personnel, they sometimes face the possibility of going overseas or being transferred to another area.

So, you can see where a refund anticipation loan, military style, can be usefully. Yet, as with anything else in life, you must follow the old axiom: caveat emptor – buyer beware. There are many companies that like to prey on young service personnel. Unfortunately, it is a known fact that many servicemen and women are young, inexperienced, and not highly educated.

As a result, they do not have a lot of knowledge and experience when it comes to handling money, filing taxes, and reading contracts. So, while getting a refund anticipation loan, military personnel need to be very careful.