The Consumer Financial Protection Bureau recently released a consumer guide and advisory about pension advances and pension loans. The pension-advance companies offer retirees and veterans either a loan or a cash advance in exchange for all or a part of their pension payments. Here are several tips: (1) do not give anyone access or control over your monthly pension payments; (2) if you are asked to sign up for life insurance with the pension-advance company as your beneficiary, be cautious; (3) do not be fooled by patriotic-sounding names, logos or claims of government backing; (4) do look at other options. If you are turning to pension advances because you are having financial difficulties, consider getting financial coaching or counseling from a professional. Many nonprofit credit counseling agencies charge sliding-scale fees. Remember that a military pension cannot legally be assigned to a third party.
For more personal finance guides and tips, visit the Military.com Money Center.