SAVE THOUSANDS
Compared to a title pawn, a loan from 1800NewDeal can you save thousands of dollars with a reduced interest rate and finance charges.
LOWER YOUR PAYMENT
In most cases, 1800NewDeal can lower your payment on a monthly basis AND get your debt paid off by the end of the term.
PAY OFF YOUR TITLE PAWN
Your payments on a loan from 1800NewDeal are allocated to principal and interest, so at the end of the term the balance is completely paid off.
TITLE PAWN TRAP
1800NewDeal offers to pay off high interest title pawns and provide borrowers with a lower interest rate and principal reducing payments that will pay off the loan. Customers may save in interest and be debt free much sooner. Most title pawn customers extend or “roll over” their title pawn for several months because paying the entire principal balance off at one time is not in their budget. A loan from 1800NewDeal pays down the balance of the loan over time so you can escape the title pawn trap.
HIGH COST OF TITLE PAWN
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 typically applied to interest and the principal balance never reduces thus creating a never-ending cycle of indebtedness.
TITLE PAWN FREEDOM
Title pawns are not intended to be long-term financing options. A pawn transaction is designed to fill a cash need for only a short time because the interest rates are extremely high.
In Georgia, the interest rate title pawn companies are allowed to charge is capped by law at 25 percent monthly (300 percent annually) for the first three months and 12.5 percent monthly after that (150 percent annually). This means a combined maximum yearly interest rate of 187.5 percent. (1)
In the case of title pawns, state law [O.C.G.A. Section 44-12-138(b)(3)] requires the pawnbroker to provide you the following written statement when you pawn your vehicle: Failure to make your payment as described in this doc-ument can result in the loss of your motor vehicle. The pawnbroker can also charge you certain fees if he or she actually repossesses the vehicle. (2)
(1) (2) Georgia Department of Law, Consumer Protection Unit http://www.consumer.ga.gov/consumer-topics/title-pawns-and-cash-advances
1800NEWDEAL LOAN VS TYPICAL TITLE PAWN
Compare Finance Charges, Monthly Payments, Payoffs and Interest Rates (1) >
| Cash to Customer | Term in Months or # of Extensions | Finance Charges | MonthlyPayment (2) | Balance at End of Term or # of Extensions | APR (3) | Amount Financed | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pawn | NewDeal | Savings | Pawn | NewDeal | Lower By | Pawn | NewDeal | Pawn | NewDeal | Pawn | NewDeal (4) | |||||||
| $5,000 | 36 | $22,192 | $5,760 | $16,432 | $616 | $299 | $317 | $5,000 | $0 | 150.00% | 58.80% | $5,000 | $5,018 | |||||
| $5,000 | 30 | $18,493 | $4,664 | $13,830 | $616 | $323 | $294 | $5,000 | $0 | 150.00% | 58.80% | $5,000 | $5,018 | |||||
| $5,000 | 24 | $14,795 | $3,625 | $11,169 | $616 | $360 | $256 | $5,000 | $0 | 150.00% | 58.80% | $5,000 | $5,018 | |||||
| $5,000 | 18 | $11,096 | $2,649 | $8,447 | $616 | $426 | $191 | $5,000 | $0 | 150.00% | 58.80% | $5,000 | $5,018 | |||||
| $5,000 | 12 | $7,397 | $1,738 | $5,660 | $616 | $563 | $53 | $5,000 | $0 | 150.00% | 58.80% | $5,000 | $5,018 | |||||
| $4,000 | 30 | $14,795 | $3,734 | $11,061 | $493 | $258 | $235 | $4,000 | $0 | 150.00% | 58.80% | $4,000 | $4,018 | |||||
| $4,000 | 24 | $11,836 | $2,903 | $8,933 | $493 | $288 | $205 | $4,000 | $0 | 150.00% | 58.80% | $4,000 | $4,018 | |||||
| $4,000 | 18 | $8,877 | $2,121 | $6,756 | $493 | $341 | $152 | $4,000 | $0 | 150.00% | 58.80% | $4,000 | $4,018 | |||||
| $4,000 | 12 | $5,918 | $1,391 | $4,526 | $493 | $451 | $42 | $4,000 | $0 | 150.00% | 58.80% | $4,000 | $4,018 | |||||
| $3,000 | 30 | $11,096 | $2,805 | $8,291 | $370 | $194 | $176 | $3,000 | $0 | 150.00% | 58.80% | $3,000 | $3,018 | |||||
| $3,000 | 24 | $8,877 | $2,180 | $6,697 | $370 | $217 | $153 | $3,000 | $0 | 150.00% | 58.80% | $3,000 | $3,018 | |||||
| $3,000 | 18 | $6,658 | $1,593 | $5,064 | $370 | $256 | $114 | $3,000 | $0 | 150.00% | 58.80% | $3,000 | $3,018 | |||||
| $3,000 | 12 | $4,438 | $1,045 | $3,393 | $370 | $339 | $31 | $3,000 | $0 | 150.00% | 58.80% | $3,000 | $3,018 | |||||
| $2,000 | 18 | $4,438 | $968 | $3,470 | $247 | $187 | $59 | $2,000 | $0 | 150.00% | 46.08% | $2,000 | $2,400 | |||||
| $2,000 | 12 | $2,959 | $688 | $2,271 | $247 | $244 | $2 | $2,000 | $0 | 150.00% | 52.44% | $2,000 | $2,246 | |||||
| $1,000 | 18 | $2,219 | $568 | $1,652 | $123 | $99 | $24 | $1,000 | $0 | 150.00% | 52.47% | $1,000 | $1,220 | |||||
| $1,000 | 12 | $1,479 | $413 | $1,067 | $123 | $129 | -$6 | $1,000 | $0 | 150.00% | 61.20% | $1,000 | $1,141 | |||||
(1) Examples assume the title pawn tranactions are extended or "rolled over" for as many months as the 1800NewDeal loan is financed as indicated by Term in Months or # of Extensions.
(2) Examples assume all payments are paid on the applicable due dates.
(3) APR, Annual Percentage Rate.
Examples indicate actual 1800NewDeal APRs for the Amount Financed and Term in Months of the loan.
Examples assume title pawn companies charge approximately the Georgia state maximum 150% APR for pawn tickets that are extended or "rolled over".
(4) 1800NewDeal adds an $18 Title Recording Fee to Amount Financed that is paid to the Georgia Department of Revenue.
1800NewDeal examples assume the vehicle is insured with collision & comprehensive insurance coverage, otherwise additional charges may be required.
1800NewDeal examples less than $3,000 Amount Financed are loans made subject to the Georgia Industrial Loan Act and may include various fees and insurance charges.