The Growth of The Pawnbroking Industry

Pawning is on the uptick. There are more individuals hocking their valuables than ever before. This practice was rising even before the Corona virus pandemic hit us, but now it is at an accelerated pace as more people struggle to keep their jobs or earn an income. The Pawnbroking industry has been coming out of the shadows and shedding a lot of the stigma that has been attached to it because of television’s focus on pawn shops.

Short term loans are the core of the pawn industry. Here’s how pawning usually works:

  • You bring an item of value to a Pawnbroker who evaluates it and then makes you an offer. There is some back-and-forth haggling over the price. You settle and accept whatever the final price is.
  • The Pawnbroker gives you some paperwork to sign and issues a ticket that had details of the loan, repayment details and the due date.
  • The Pawnbroker gives you the money and the ticket and you go home.
  • The Pawnbroker cannot display your items on the sales floor but stores it somewhere safe.
  • You repay the loan on time and get your items back, you default on the loan and you don’t get your items back and the Pawnbroker can then sell the item to recoup his money.

Pawnbrokers Brisbane are not second-hand dealers. They are in the business of making loans, so a pawn shop owner would rather have more customers paying back their loans than defaulters. Having to sell items because of defaults is not the ideal outcome for most Pawnbrokers.

If you’ve never pawned anything in your life or had any cause to step foot in a pawnshop, you should learn a few things first so you don’t sell yourself short.

If you are in serious financial trouble, a pawnshop shouldn’t be the first place you go to. Pawnbrokers promise instant cash for your valuable but they’ll pay you 20-60% of the retail value. They also don’t talk about the interest rates which can be high. The interest on a $200 loan would never be less than 25%per month. This means you will pay $50 interest per month.Credit cards attract less interest. You might want to try getting $200 from your credit card unless it is maxed out. The biggest advantage for pawn loans is that they don’t require a high credit score and they won’t raise any red flags even if you default on your payment.

Not All Pawnbrokers Are The Same

Most brick-and-mortar Pawnbrokers Brisbane offer small short-term loans. However , in recent years there has been an emergency of deep-pocketed Pawnbrokers who cater to customers with pricier items to pawn. So, instead of the usual $200 average loans payable over 30 days, there are Pawnbrokers that offer a minimum of $2,000 payable over 3 to 6 months.

Be informed

Pawning your valuables should be an informed decision. During tough times, more people use Pawnbrokers but it is important for anyone to know their Pawnbroker and to explore all the options they can. Ask questions, know what your items are worth and try not to sound desperate. Pawnbrokers know that pawning valuable items like your grandfather’s gold pocket watch or the wedding ring you’ve had for years isn’t an easy decision but a choice you had to make because you really need the money. Unscrupulous operators will try and take advantage of your situation. Don’t make it easy for them.

 

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