I was working on a story recently about one of the worst types of loans — auto title loans — when a credit counselor I was interviewing told me something I had never considered as a reason for getting such a horrible loan that often leads to spiraling debt.
Some of her clients had good credit, she said, and could probably get a loan at a bank, but they chose not to. Why? They didn’t want their spouse to know about their debt.
“A lot of my customers were hiding things,” she said.
She didn’t say what the debt typically was — though it’s often everyday expenses and not always for emergencies, as I thought it would be, according to a report I was writing about. The title loan was often needed to pay off a credit card bill, and was for debt the borrower didn’t want their spouse, significant other or employer to know about, the credit counselor told me. Continue reading