Eat at soup kitchen rather than Title Loan

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Title loans are a very common secured loan instrument for loan sharks, I mean lenders who prey on people who have fallen upon desperate financial circumstances. The car title loan you see below was advertised in the $hopper(full of classified ads and historical snippets) which is a Wednesday only good deal publication in Roswell, New Mexico.

Need Cash? Willing to lose your car?
Need Cash? Willing to lose your car?

I want to go through the math calculations for the gouging interest rates you would be charged if you want to borrow $300 for 7 days. The cost for borrowing this amount for a week is $17.50. There are 52 weeks in a year which means  your annual interest would be $910 for borrowing only $300 from USA Title Loans!! That is a 303% annual interest rate which is an egregious example of usury.

It is true that you are not borrowing the money for an entire year, but serves to illustrate how unreasonable and unethical USA Title Loans are being. Also, if you don’t pay them the $317.50 in 7 days, they can legally assume ownership of your car.

So rather than serving Roswell for the last 15 years as their advertisement says, they have been ripping them off.

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