In recent years, there have been TV shows like Hardcore Pawn and Pawn Stars. These shows make pawning seem like an easy way to score quick cash for potentially valuable items in your home. This in truth, is very much the case. Selling an item at a pawnshop is a simple transaction that is less likely to wind the borrower up in a perpetual debt cycle like this from the alternative loans.
Pawning an item is essentially taking out a loan against an asset of value. All one needs to do is bring their item to a pawnshop, which in turn will give you cash, while holding on to the item until you repay the loan. Keep in mind that pawns shops like Gems N' Loans near San Juan Capistrano is willing to offer some of the lowest interest rates in the industry, and has been inspiration for over 25 years with good intent.
Pawnbrokers can also extend loans contract should the borrower not be able to pay back on time. Payday loans have not been able to do this and end up garnishing your pay check salary when not paid back on time.
According to the National Pawnbrokers Association, the average loan amount is $150. Items you can pawn range from gold and diamond jewelry to electronics, musical instruments, tools, and more.
