A Guide to Payday and Title Loans in

Round Rock, TX

Payday Loans in Round Rock

Round Rock, Texas, is a thriving city just outside of Austin. Round Rock is home to nearly 124,000 people and the Round Rock Express minor league baseball team. Population growth here is steady. The median household income in Round Rock is over $74,000, well above the U.S. average of $59,039, and the poverty rate is just 9.6%.

But for the nearly 12,000 Round Rockers living in poverty, making ends meet can lead to the temptation of predatory payday loans.

Poverty Rate in Round Rock vs. Texas
Round Rock
Texas
9.6%
16.7%
Poverty Rate

Payday Lending in Round Rock

Predatory lending takes advantage of desperate borrowers by charging massive interest rates and huge fees for small loans. The majority of these loans are under $1,000 and have terms under a month, but carry annual interest rates over 300%. Most people would consider that loansharking, but for these lenders, that’s the norm. The primary types of predatory loans are payday loans, which use a postdated check as collateral, and title loans, which use the title of vehicles as collateral.

What is a payday loan?

A payday loan is money lent to someone who has given the lender either a postdated check as collateral or access to the borrower’s bank account. At the end of the loan term, the check is cashed or the loan balance is taken out of the borrower’s bank account. Generally, the borrower has 2 weeks to 1 month to pay back the loan.

But the price of these loans is steep: interest rates are generally more than 300%, and borrowers also have to pay a fee. If the borrower can’t pay back the full amount of the loan, most payday lenders offer the ability to “roll over” the loan — taking out another loan to cover the balance of the previous one. That means more interest and more fees for the lender and more debt for the borrower. In the case of title loans, the borrower might end up losing their vehicle.

The payday loan industry in Texas is thriving. Texas payday loan providers can charge interest rates of 410% or more. As for fees, anything goes. This means that Texas is the place to be for predatory lenders. In fact, it’s easier to find a payday lender than a McDonald’s in this state.

Payday lenders are after one thing: getting as much money out of their borrowers as possible. It’s best to steer clear of these kinds of loans.

Local Resources to Help Round Rock Residents Avoid Predatory Lenders

People tend to seek out payday loans when they are facing an emergency situation. Maybe you broke a bone and are having trouble covering the costs. Maybe you’re just a little short on the rent this month. Maybe you just need a little extra money to buy groceries for this week. Maybe you’re supporting a loved one through recovery from addiction and things are tight this month.

Taking out a payday loan isn’t your only option in these scenarios, though. Community organizations in Round Rock can help you avoid the hazards of a payday loan.

 

Consumer Spending in Round Rock vs. Texas vs. U.S.

 

Total per Household

Apparel & Services

Dining Out

Food Consumed at Home

Entertainment/Recreation

Health Care

Housing

Life and Other Insurance

Pensions and Social Security

Transportation

Round Rock

$77,320

$2,406

$3,739

$5,733

$3,406

$5,811

$24,031

$446

$8,269

$9,443

Texas

$70,379

$2,223

$3,460

$5,204

$3,154

$5,607

$21,568

$410

$7,440

$8,452

United States

$57,311

$1,803

$3,154

$4,049

$2,913

$4,612

$18,886

$322

$6,509

$9,049

Food Assistance Resources in Round Rock

Having mouths to feed can be an enormous financial strain. Don’t panic if you’re having trouble putting food on the table—local organizations can help. Here are some food pantries in the area:

Round Rock Area Serving Center

  • Address: 1099 East Main St.; Round Rock, TX 78664
  • Phone: 512-244-2431

St. Elizabeth Catholic Church Society of St. Vincent de Paul

  • Address: 1520 North Railroad Ave.; Pflugerville, TX 78660
  • Phone: 888-801-7837
Medical Debt in Williamson County vs. Texas
Williamson County
Texas
8.0%
17.0%
% Uninsured
22.0%
26.0%
% with Medical Debt in Collections
$871
$850
Median $ Medical Debt in Collections

Healthcare Resources in Round Rock

The good news is that Round Rockers are mostly insured—the uninsured rate in Williamson County is just 8%. But 22% of residents in Williamson County have medical debt in collections, with an average debt load of $871.

The cost of a nasty case of the flu—doctor’s visit, medicine—can be enough to drive you into the waiting arms of predatory lenders. Instead, consider some of the free and low-cost clinics in the area that can help.

Sacred Heart Community Clinic

  • Address: 620 Round Rock West Dr. Building 8; Round Rock, TX 78681
  • Phone: 512-716-3929

The Heidi Clinic – Round Rock

  • Address: 894 Summit St.; Round Rock, TX 78664
  • Phone: 512-255-2088

A.W. Grimes Medical Offices – Lone Star Circle of Care

  • Address: 2051 Gattis School Rd. Suite 250; Round Rock, TX 78664
  • Phone: 512-238-5400
Round Rock vs. Texas Median Housing Values and Monthly Costs

 

Median Housing Value

% of Housing Units with a Mortgage

Median Monthly Cost (w/ mortgage)

Median Monthly Cost (w/o mortgage)

Median Rent

Round Rock

$192,500

79.3%

$1,567

$641

$1,104

Texas

$142,700

59.0%

$1,444

$467

$911

Monthly Housing Costs as a Percentage of Household Income in Round Rock
  • Less than $20,000:18.0%
  • $20,000 to $34,999:19.3%
  • $35,000 to $49,999:15.3%
  • $50,000 to $74,999:17.8%
  • $75,000 or more:26.8%

Rent Assistance in Round Rock

Rent in Round Rock isn’t cheap. The median monthly rent in the city is $1,104, which is nearly $200 more per month than the rest of Texas. Having to cough up that much each month just for rent can mean that there isn’t much left for your savings account, and you may have trouble keeping up.

If you’re at risk for eviction, taking out a payday loan might seem like a good way to keep a roof over your head. But before trapping yourself in an endless cycle of debt, consider reaching out to one of these organizations that offer emergency rent assistance:

Round Rock Area Serving Center

  • Address: 1099 East Main St.; Round Rock, TX 78664
  • Phone: 512-244-2431

St. Elizabeth Catholic Church Society of St. Vincent de Paul

  • Address: 1520 North Railroad Ave.; Pflugerville, TX 78660
  • Phone: 888-801-7837

Texas Subprime Reports

Works Cited