R 021000Z DEC 05
FM CMC WASHINGTON DC(UC)
UNCLASSIFIED//
ALMAR 060/05
MSGID/GENADMIN/CMC WASHINGTON DC JA//
SUBJ/FINANCIAL READINESS ADMINISTRATION//
GENTEXT/REMARKS/1.  A MARINE'S FINANCIAL READINESS DIRECTLY IMPACTS
UNIT READINESS AND, CONSEQUENTLY, THE CORPS' ABILITY TO ACCOMPLISH
ITS MISSION.  WE MUST ACT TO ENSURE OUR MARINES AVOID FINANCIAL
PITFALLS AND MAKE WISE DECISIONS.
2.  RECENT STUDIES INDICATE THAT APPROXIMATELY SEVEN PERCENT OF
MILITARY PERSONNEL USE PAYDAY LOANS.  PAYDAY LOANS ARE ATTRACTIVE TO
MARINES FACING FINANCIAL DILEMMAS BECAUSE THEY ARE EASILY OBTAINED.
SUCH LOANS ARE USUALLY SMALL, SHORT-TERM ARRANGEMENTS DESIGNED TO
TIDE OVER CASH-STRAPPED BORROWERS UNTIL THEIR NEXT PAYCHECK.
HOWEVER, THEY ARE HIGH INTEREST, RAPIDLY COMPOUNDING LOANS THAT CAN
DEVASTATE A MARINE'S PERSONAL FINANCES - ESPECIALLY SINCE MOST
PAYDAY LOANS ARE NOT IMMEDIATELY PAID OFF.  NOTABLY, THE INTEREST
AND FEES FOR PAYDAY LOANS AVERAGE MORE THAN 300 PERCENT ABOVE THE
LOAN AMOUNT.  THERE ARE BETTER OPTIONS FOR MARINES EXPERIENCING
FINANCIAL DISTRESS.
3.  PERSONAL FINANCIAL MANAGEMENT PROGRAMS PROVIDED BY MARINE CORPS
COMMUNITY SERVICES STAND READY TO EDUCATE AND COUNSEL MARINES AND
THEIR FAMILY MEMBERS REGARDING PERSONAL FINANCES.  COMMANDERS SHOULD
ALSO ENCOURAGE MARINES TO SEEK LEGAL ASSISTANCE PRIOR TO SIGNING
LOAN DOCUMENTS OR OTHER CONTRACTS.  LASTLY, WE MUST TAKE FIRM AND
FAIR ACTION THROUGH THE ARMED FORCES DISCIPLINARY CONTROL BOARD AND
OTHER MEANS TO DENY ACCESS TO LENDERS WHO TAKE UNFAIR ADVANTAGE OF
MARINES.  YOU CAN FIND MORE INFORMATION REGARDING THE DEPARTMENT OF
DEFENSE'S PAYDAY LENDING INITIATIVES AT
WWW.MILITARYHOMEFRONT.DOD.MIL BY FOLLOWING THE "LEADERSHIP" LINK TO
THE "FINANCIAL READINESS" LINK.
4.  THROUGH YOUR CONTINUED EMPHASIS OF PERSONAL FINANCIAL EDUCATION
AND LEGAL ASSISTANCE FOR OUR MARINES, WE CAN IMPROVE THE FINANCIAL
READINESS OF OUR MARINES AND CURB THE USE OF PAYDAY LOANS.  ENSURE
ALL MARINES ARE MADE AWARE OF THIS MATTER, AND IMMEDIATELY REFER
THEM TO THE INSTALLATION PERSONAL FINANCIAL MANAGEMENT PROGRAM,
LEGAL ASSISTANCE OFFICE, OR STAFF JUDGE ADVOCATE FOR ASSISTANCE.
5.  KEEP ATTACKING, M. W. HAGEE, GENERAL, U.S. MARINE CORPS,
COMMANDANT OF THE MARINE CORPS.//