A 25 percent monthly interest rate translates to a 300 percent APR, because twelve months times 25 percent a month is 300. So that $1,000 title loan you took out to have your fuel pump’s power train air gasket de-gunked may cost you $250 in interest at the end of one month, but at the end of twelve months, it’s going to end up costing you $3,000. Remember, that’s just the interest. You’ll still owe the principal amount of $1,000. A Lose-Lose Situation