The Debt Trap: Texans taken for the trip by auto-title loans
By Yamil Berard
EditorвЂ™s note: One research suggests that the texan that is average about $40,000 with debt. A few of them dropped victim towards the effortless cash available through auto name loans, and that quantity is increasing. In 2013, Texans paid just as much as $360 million in charges to car name companies вЂ” $53 million significantly more than in 2012. Your debt Trap is a project that is collaborative the Star-Telegram, WFAA additionally the Austin American-Statesman targeted at shining a light on loans that either assist the economically disadvantaged or devastate them, based on who you ask. This installment explores loans that are car-title. Upcoming installments can look at reverse mortgages and student education loans.
FORT WORTH вЂ” Mary Dixon ended up being hours far from losing her 2007 silver Mercury Mountaineer on Feb. 6.
Dixon, 47, of Mansfield, had lent $2,994.95 on Dec. 2 to pay for a grouped household crisis. By January, she had currently doled out a finance that is prepaid of greater than $300. Now she owed a last balloon repayment of $3,351.28 to a title-loan storefront on East Lancaster Avenue.
She had a complete great deal of business. In Texas, almost 380,000 borrowers compensated since much as $360 million in costs alone at hand throughout the games for their vehicles for quick cash, 2013 state data reveal. ThatвЂ™s a $53 million jump in costs from 2012 to 2013, relating to state information for 2012 and 2013.