Don’t let predatory lending loans spoil holidays

(NNPA)—From Christmas carols to decorations that celebrate the season, the holidays mark the time of year when families and loved ones anticipate joyous celebrations and gift-giving. It’s a season when excesses can easily go beyond over-eating to over-spending, bringing debts that can last well into the New Year.
The holidays are also a time when predatory lenders actively use tempting advertisements of extra cash to seek potential victims. If your holiday list calls for more money than available, don’t make the mistake of falling into the trap that may take most of next year to escape.
Car title lenders can put not only your household budget at risk, but your car as well. With promises such as a 50 percent interest off of the first month, or $25 cash payment for referring new customers, these financial predators will take a title to a borrower’s vehicle in exchange for several hundred or even a few thousand dollars.
Like payday loans, these enticements are designed to trap consumers into predatory loans that are certified debt traps that few consumers can fully repay in just a single payment. The typical car title loan carries a 300 percent annual percentage rate. While borrowers are only loaned a fraction of their vehicle’s value, if vehicles are repossessed, car-title lenders have the right to sell the vehicle at fair market prices, pocketing the profit from its sale — despite borrowers still being stuck with paying debt.