Hocking your car for cash or getting a title loan can make a bad situation worse. To repay these high-interest loans in a single payment, the average title loan borrower gives up 50 percent of the average gross monthly income. The average payday loan will consume 36 percent of the average borrower’s paycheck, according to The Pew Charitable Trusts.
A lot of borrowers can’t afford that, so they get caught in a cycle of renewing these loans, which digs a deeper and deeper ditch.
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