The Debt Trap: Texans taken for a trip by auto-title loans | Fort Worth Star-Telegram

The Debt Trap: Texans taken for a trip by auto-title loans | Fort Worth Star-Telegram

Fort Worth

The Debt Trap: Texans taken for a trip by auto-title loans

By Yamil Berard

Editor’s note: One research reveals that the average Texan is about $40,000 with debt. A number of them dropped victim to your money that is easy through car name loans, and therefore quantity is increasing. In 2013, Texans paid just as much as $360 million in charges to car title companies — $53 million significantly more than in 2012. Your debt Trap is a collaborative task by the Star-Telegram, WFAA in addition to Austin American-Statesman directed at shining a light on loans that either assist the economically disadvantaged or devastate them, based on who you ask. This installment explores car-title loans. Upcoming installments can look at reverse mortgages and figuratively speaking.

FORT WORTH — Mary Dixon had been hours far from losing her 2007 silver Mercury Mountaineer on Feb. 6.

Dixon, 47, of Mansfield, had borrowed $2,994.95 on Dec. 2 to pay for family members crisis. By January, she had currently doled out a finance that is prepaid in excess of $300. Now she owed a balloon that is final of $3,351.28 to a title-loan storefront on East Lancaster Avenue.

She possessed large amount of business. In Texas, almost 380,000 borrowers compensated since much as $360 million in charges alone at hand throughout the games for their vehicles for quick cash, 2013 state data reveal. That’s a $53 million jump in charges from 2012 to 2013, in accordance with state information for 2012 and 2013. Those charges try not to add finance costs due to the fact state doesn't keep an eye on the fees.

Needless to say, car repossessions by car name companies also have risen. In the 1st three quarters of 2014, Texas payday and lenders that are auto-title significantly more than 32,100 repos to your workplace of credit rating Commissioner.Read more