Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office
214-733-1775
972-608-0335
903-813-4778

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Use car title loans at your own risk

Just imagine you got your credit card statement in the mail and you cannot afford your minimum payment. You need a bit more money so you can pay your bill, so you turn to a car title loan company. You fill out some paperwork and you use your car's title as collateral. It's a simple way to get some money, so what is the problem?

Car title loans are short-term loans, which means that a borrower has to pay back the loan in its entirety relatively quickly and usually within a month. If he or she doesn't, triple-digit interest rates will kick in, as well as fees to carry the loan over to the next month. By the time someone is done paying off a car title loan, he or she could have paid up to $4,000 for a $1,000 loan.

Though people in Dallas can't just ignore their bills, just because they can't afford them doesn't mean a car title loan is the only option available. A bankruptcy attorney can help to negotiate a debt settlement with a credit card company, for example, which would give an individual more time to pay the bill. If the debt is overwhelming, an attorney can discuss bankruptcy, both its positive and negative aspects.

Some people who do get car title loans choose not to pay the loan back. Whether it is the high interest, the fees, or he or she is just not able to afford it, refusing to repay the loan means the lender can take possession of the car.

Source: AARP, "Car Title Loans May Wreck Your Finances," Lynnette Khalfani-Cox, Jan. 17, 2014

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
Map & Directions