TITLE PAWN FREEDOM
1800NewDeal offers to pay off high interest title pawns or title loans and provide borrowers with a lower interest rate and principal reducing payments that will pay off the loan. Customers may save thousands of dollars in interest and be debt free much sooner.
TITLE PAWN TRAP
A traditional title pawn transaction is typically issued for a 30 day period, after which the entire amount is due in full. If the customer is unable to pay off the full amount, title pawn companies will “roll over” the ticket for another month, usually at a high rate of interest. As payments are made, all the proceeds are generally applied to interest and the principal balance never reduces thus creating a never-ending cycle of indebtedness.
HIGH COSTS OF TITLE PAWN
Don’t be fooled by the 12.5% interest rates shown on the signs and windows of title pawn companies. The problem is that these rates are monthly rates. When it comes time to sign the pawn contract, that 12.5% monthly rate jumps to 150% annually. Title pawn transactions are extremely expensive. In Georgia, the interest rate can be as high as 25% monthly (300% annually) for the first three months and 12.5% monthly (150% annually) thereafter.
|The Title Pawn Trap|
|Low Payments||High Payments|
|Low Interest Rate||High Interest Rate (100% to 300% APR)|
|Balance Goes Down With Each Payment||Balance Never Goes Down|
|Same Due Date Each Month||Due Date Always Changes|
|Reports To All Three Credit Bureaus||Does Not Report To Credit Bureaus|
|Pay in Person, Online Or By Phone With Check/Debit||Must Pay With Cash Or Money Order|