We're all paying more for just about everything which has some people worried about credit card spending and loan payments. For service members and their families, there are some special consumer programs that can help.
Federal agencies say young service members can be targeted by some unique money challenges because of their steady paycheck at an early age. That can send them into debt if they aren't careful.
"As a kid I wasn't aware of what credit was," said Hector Cabrera, a retired Senior Airman. "Any car we bought, we bought from a friend."
Cabrera said when September 11, 2001, happened, he didn't even think twice about joining the Airforce. While on active duty, he ignored the balances on his two credit cards.
Get San Diego local news, weather forecasts, sports and lifestyle stories to your inbox. Sign up for NBC San Diego newsletters.
"I thought miraculously these credit cards would find out I was gone and serving our country," said Cabrera. "That wasn't the case when I came back."
Instead, he said he was greeted by collection agencies. He remembers how his credit score dove under 500, but still he went off base to buy a new truck.
"I didn't know any better," said Cabrera. "They were telling me I could get this truck, I said yes. I didn't really compute that it was 70% of my paycheck and the interest rate was at 26%."
Local
And Cabrera said while working at the gate, he saw others doing the same thing.
"When vehicles roll in and you saw a Honda Civic, you'd say it's probably an officer," said Cabrera. "When you see a brand new Lexus roll in, fully loaded, you'd say it's probably an E-1. Nine out of ten times, you'd be right."
The Consumer Financial Protection Bureau says auto loans are one way service members can quickly fall into debt.
"They take these auto loans and they have a revolving credit at a much higher rate than those who did not serve," said Jim Rice with the CFPB.
Rice says with a steady paycheck, they can qualify for credit they may not need or know what to do with. With their full attention on training and their service, they can quickly lose control of their credit.
That's why the CFPB and the Department of Justice sent out a letter this summer, reminding auto loan companies about the protections in place for active-duty military. They include:
- No interest rates above 6%
- Protection against repossession of vehicles
- Letting service members terminate car leases early without penalty
"It's so they are aware of them at the installation level," said Rice. "So we're sharing that information."
If you or a family member is trying to learn more about finances while serving, the CFPB has put together an interactive website to help explain financial scenarios, and what protections are in place for service members.
