New Report: High use of pawn shops, check cashing services - WTVM.com-Columbus, GA News Weather & Sports

New Report: High use of pawn shops, check cashing services

By Andrew Wittenberg  - bio | email | Twitter

COLUMBUS, GA (WTVM) - Tough times and tough choices for more familes.

One out of four of American households are cutting out trips to the bank and turning to check cashing services and pawn shops instead.

It's a practice that can put you deeper into debt...especially this time of year.

Some call it a vicious cycle, racking up debt during the holidays.

That has become even more apparent with today's numbers released by the FDIC.

19 percent of Georgians, who use banks, also use high interest check-cashing institutions and pawn shops.

The numbers are worse in Alabama at more than 20 percent.

"It is a service that is used, and although it's not illegal, we just don't want to see people get trapped in that."

Trapped is exactly how Leonard Crain, President of the local Better Business Bureau describes it.

He says it is hard enough for low-income families to get ahead during the year.

But the allure during a holiday season to "get cash quickly" draws thousands into that trap.

"I see this item, it's maybe on sale. We just have to have it, or maybe it's a special Christmas item, it's going to be off sale next week, it's the "in the now" "right now", "we've got to have it" and this is the only way we can get it," Crain said.

The danger comes after the holidays.

Many families already live paycheck to paycheck, and with compounding interest, the prospect of paying off that debt is bleak.

"Of course, the interest rates are high. So what we've seen is that it's very difficult to relieve yourself from that cycle once your in it," Crain said.

If you have fallen victim to high interest loans, you can call Consumer Credit Services in Columbus at (706) 327-3239.

  • LocalMore>>

  • 2017 Benning Multi-Gun Challenge wraps up

    2017 Benning Multi-Gun Challenge wraps up

    Sunday, November 19 2017 1:25 PM EST2017-11-19 18:25:48 GMT
    (Source: Marla Spence/WTVM)(Source: Marla Spence/WTVM)

    Sunday was the final day for the Fort Benning Multi-Gun Challenge, hosted by the Fort Benning Directorate of Family and Morale, Welfare and Recreation (DFMWR) and facilitated by the U.S. Army Marksmanship Unit (USAMU).

    More >>

    Sunday was the final day for the Fort Benning Multi-Gun Challenge, hosted by the Fort Benning Directorate of Family and Morale, Welfare and Recreation (DFMWR) and facilitated by the U.S. Army Marksmanship Unit (USAMU).

    More >>
  • Man shot early Sunday morning on Brown Avenue

    Man shot early Sunday morning on Brown Avenue

    Sunday, November 19 2017 3:14 PM EST2017-11-19 20:14:38 GMT
    (Source: WALB)(Source: WALB)

    According to a police report, police were dispatched to Columbus Fire and EMS Station 6 at 1126 Brown Avenue just after midnight Sunday in reference to someone suffering from a gunshot wound.

    More >>

    According to a police report, police were dispatched to Columbus Fire and EMS Station 6 at 1126 Brown Avenue just after midnight Sunday in reference to someone suffering from a gunshot wound.

    More >>
  • 1 injured in Saturday shooting at Ballard Way Apartments

    1 injured in Saturday shooting at Ballard Way Apartments

    Sunday, November 19 2017 5:27 PM EST2017-11-19 22:27:16 GMT
    (Source: Mya Johnson/WTVM)(Source: Mya Johnson/WTVM)

    Police are investigating a shooting Saturday night at a Columbus apartment complex. According to police reports, the shooting happened Saturday night around 7 at the Ballard Way Apartment at 5600 Hunter Road.

    More >>

    Police are investigating a shooting Saturday night at a Columbus apartment complex. According to police reports, the shooting happened Saturday night around 7 at the Ballard Way Apartment at 5600 Hunter Road.

    More >>
Powered by Frankly