Before You Take a Payday Loan, Call Your Relief Society

The car dies two days before payday. A flight home for a funeral costs $800 you don't have. The landlord wants the deposit by Friday.

That's when the payday lender down the street looks like the answer. It isn't. Every branch of service has a relief society built for exactly this moment, and a lot of service members never think to call theirs.

Here's what they are, who they cover, and how to use one before you sign anything with a lender.

What a payday loan actually costs

The Consumer Financial Protection Bureau's own example: a $15 fee for every $100 borrowed. That sounds small until you turn it into a yearly rate. The average payday loan works out to about 390% APR.

If you're on active duty, the Military Lending Act caps the rate on certain loans, including certain payday, auto title, and tax-refund loans, at 36% APR for you, your spouse, and certain dependents. That's a real protection. But 36% is still a lot of money to pay for a bad week. What else to check before you open a card is in What to Look for in a Military Credit Card.

The relief societies charge 0%.

Here's what that looks like on a real emergency. Say you need $500 for a car repair. At $15 per $100, a two-week payday loan costs you $75 in fees. If you can't pay it all back on payday and roll it over, you pay another $75. Roll it four times and you've paid $300 in fees and still owe the $500. Borrow the same $500 from a relief society and you pay back $500. Nothing else.

The four relief societies

Each branch has its own nonprofit. They give interest-free loans, grants, or a mix of both for real emergencies.

Army Emergency Relief (AER). For Soldiers on active duty and their families, retirees, and surviving spouses. Guard and Reserve Soldiers qualify when they're on Title 10 orders for more than 30 days. AER covers things like rent and mortgage, emergency travel, vehicle costs, utilities, food, medical co-pays TRICARE doesn't cover, dental care, home repair, and funeral expenses. You can apply online from anywhere in the world.

Navy-Marine Corps Relief Society (NMCRS). For active duty and retired Sailors and Marines, their families, surviving spouses, and reservists on extended active duty of 30 days or more. It covers everyday living expenses, car repairs, registration and insurance, PCS moves, medical and dental bills, and funerals. Help often comes the same day, and active-duty members can get a Quick Assist Loan of up to $1,000.

Air & Space Forces Aid Society (AFAS). For the Air Force and Space Force. This one stands out for the Guard: Air Guard and Air Force Reserve members are eligible regardless of duty status. It covers rent, utilities, car repairs, insurance, fuel, emergency medical and dental care, child care, emergency travel, and funeral costs, and it added home repair, furniture, and mental health support in 2025. AFAS says it plainly: use their interest-free loan before you go to a high-interest lender.

Coast Guard Mutual Assistance (CGMA). The Coast Guard's version, offering the same kind of grants and no-interest loans.

What they won't pay for

These are emergency funds, not a line of credit. AER, for example, won't cover a divorce, a car purchase or lease, debt consolidation, a vacation, a business venture, or legal fees. If the need is real and unexpected, ask. If it's a want, this isn't the place.

If you're Guard or Reserve and not on orders

This is where it gets uneven, so know your lane.

• Air Guard and Air Force Reserve: you're covered by AFAS regardless of duty status. Drill-status Airmen can apply.
• Army Guard and Army Reserve: AER covers you when you're on Title 10 orders for more than 30 days. On drill status alone, you generally aren't covered.
• Navy and Marine Corps Reserve: NMCRS covers you on extended active duty of 30 days or more.

If you're not covered, don't go straight to a payday lender. Ask your unit's family readiness office what help exists for drilling members where you live, and look at the VFW option below if your hardship is tied to a deployment or duty.

One more option: the VFW

The VFW's Financial Assistance for Service Members program gives grants of up to $2,500, not loans, so there's nothing to pay back. It's for active-duty members, including activated Guard and Reserve, and their families who hit a hardship tied to a deployment, military duty, or an injury. The VFW pays the creditor directly.

How to actually use one

1. Know your society before you need it. Save the number in your phone today. AER: 866-878-6378. VFW: 1-866-789-6333. The middle of an emergency is a bad time to start searching.
2. Have your numbers ready. Expect to show the bill and your budget. AFAS, for example, requires supporting documents and sometimes a budget worksheet. Bring your LES, the bill or estimate, and a rough monthly budget.
3. Ask your chain of command or your family readiness office. They work with these societies all the time and can point you to the right office fast.
4. Pay it back on time. Loans are set up so you can repay them from your pay. Keeping that clean keeps the door open for the next emergency.

Then build the fund that keeps you from needing it

A relief society is the right call when something breaks. The goal is to need it once, not every year.

After you're through it, start the cushion that covers the next one: even $25 a payday adds up to $600 a year on a twice-a-month schedule. Set the transfer up once and let it run (see Automate the Money You Don't Trust Yourself to Move), and build the budget that shows you where the leaks are (see 7 Things to Do the Moment Your Military Paycheck Hits).

Your checklist

• Find your branch's relief society and save the number now.
• Guard or Reserve? Check your eligibility: Title 10 orders over 30 days for AER and NMCRS, any duty status for AFAS.
• In an emergency, call the society before a payday lender.
• Bring your LES, the bill, and a basic budget.
• Once it's handled, start a small automatic emergency fund.

Sources: Army Emergency Relief, eligibility and assistance; Navy-Marine Corps Relief Society, interest-free loans and grants; Air & Space Forces Aid Society, Financial Assistance Updates (Jan 2026); CFPB, What military families should know about payday loans; VFW, Financial Assistance for Service Members; checked October 2026.

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Disclaimer: I am not a financial advisor. The information provided here is for educational purposes only and should be verified independently. See the full Disclaimer.