Car title loans can drive you into deeper debt - WALB.com, Albany News, Weather, Sports

Car title loans can drive you into deeper debt

Posted: Updated:

March 24, 2008

Albany -- The mortgage meltdown has caused credit standards to get tighter.  

And now many people who can't get approved for a loan are looking to title loans for the money. But if you don't read the fine print, car title loans can drive you deeper into debt.

These loans have interest rates anywhere from 90 to 300 percent annually. And this doesn't include any additional charges from service or penalty fees.

"These car title places that are popping up everywhere, that is not the solution. And the worst that could happen is you are already having financial problems. And now you have the possibility of getting into more debt, and you now have the possibility of losing your car," said We Care Alliance Director, Cassandra Miller.

Credit counselors say its best to take the time to repair your credit history if you can't get approved for a loan.

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