Some troops use special loans for airfare despite high interest rates

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Some troops use special loans for airfare despite high interest rates
By Seth Robson, Stars and Stripes
European edition, Thursday, October 9, 2008

VILSECK, Germany — Military personnel in Europe are paying interest rates of almost 20 percent on loans that allow them to travel back to the States at short notice and pay nothing until a month later.

ABC Travel Mannheim’s lead travel agent Mary Akbaba said Monday that each year between 100 and 200 Americans take advantage of Fly Now, Pay Later, an option that allows people to defer payment on airfares and other travel-related costs.

The offer, which is only available to U.S. servicemembers, retirees and Department of Defense civilians, relies on a finance company called U.S. Military Loans.

For Fly Now, Pay Later, the U.S.-based company charges 19.95 percent interest on amounts greater than $500 to be repaid within 12 months, according to Gene Model, associate manager for the European office of U.S. Military Loans.

ABC Travel also charges Fly Now, Pay Later customers a "handling fee" that varies depending on the amount borrowed.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=57997