Credit counselor Yolanda Dixon spends more and more time trying to help soldiers at Fort Leonard Wood who have taken out short-term, high-interest loans against their paychecks.
Many get trapped in mounting debt.
"Over the years, we've seen it growing worse," said Dixon, who works at the Consumer Credit Counseling Service in Springfield, Mo. Financial problems distract soldiers from their mission, compromise military readiness and cost some soldiers their security clearance for reasons of financial irresponsibility, she said.
Money lending by so-called "payday" stores, often found outside military bases, is drawing increasing national attention - and appears headed for a showdown in Washington.
Citing "predatory" lending practices, Sen. Jim Talent, R-Mo., has guided a bill through the Senate that would cap the annual percentage rate of loans to military personnel at 36 percent. The payday industry vehemently opposes the legislation, saying it would deny military personnel an option for paying short-term bills or covering bank checks