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

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

Editor’s note: One study demonstrates that the normal Texan is about $40,000 with debt. A lot of them dropped victim into the money that is easy through car name loans, and therefore quantity is increasing. In 2013, Texans paid up to $360 million in charges to automobile name companies — $53 million a lot more than in 2012. Your debt Trap is just a project that is collaborative the Star-Telegram, WFAA together with Austin American-Statesman targeted at shining a light on loans that either assist the economically disadvantaged or devastate them, based on whom you ask. This installment explores car-title loans. Upcoming installments will appear at reverse mortgages and student education loans.

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

Dixon, 47, of Mansfield, had lent $2,994.95 on Dec. 2 to cover family members emergency. 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 had large amount of business. In Texas, almost 380,000 borrowers paid since much as $360 million in charges alone at hand within the games for their automobiles for quick cash, 2013 state data reveal. Lees verder