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Georgia Car Title Loans - The High Price of Borrowing Money
Consumers, beware, lest you fall prey to the "instant mentality" - instant credit, instant food, instant marriage, instant divorce, instant loan… why? In the state of
Georgia, the law allows pawnshops making
Georgia car title loans to charge up to 25% per month for up to ninety days and after which they are allowed to charge a maximum of 12% per month. This makes a
Georgia
title
auto loan nothing short of usury! The owner of the pawnshop can even sell a
car based on non-payment and they can keep all the proceeds of the sale of the
car whatever the amount of the
loan.
Georgia Car Title Loans - Can you 'Afford' this Type of
Loan?
For example, if I need a quick
loan, I can use my
car title as collateral. All I need is a clean
title and a valid address. For a $600.00
loan, I will be charged a monthly interest of $150.00 with no decrease on the principal amount of $600.00. Over the next 3 months, the
loan accrues a $450.00 total interest, but I still owe the pawnshop $600.00. If I could not pay my
car loan after a set period, the pawnshop can sequester my
car and sell it without any public sale. If my
car sells, for say $4,000.00, under
Georgia law, the pawnshop gets to keep the entire amount, even if my
car loan was only for $600.00.
This type of
loan practice can really damage, instead of improve, the business climate and Georgia's statute on pawnshop transactions on
car title loans
should be repealed. The fact is, most consumers who avail of these types of loans are usually desperate and couldn't get credit elsewhere. This pushes them deeper and deeper into debt. This is a vicious cycle that is becoming more prevalent in highly urbanized areas. This calls for a more thorough study on our financial and business structure indeed!
See our reviews for more on [ georgia car title ]
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