Why are the rich using pawn shops?

There is a common misconception that the only people who go to pawn shops are poor and desperate, however, there are a lot of rich people who have turned to pawnbrokers when liquidity is a problem’ when they have more assets than actual cash in hand. This is becoming more prevalent with the ad economy. A lot of rich people who would otherwise never be caught dead inside a pawn shop especially in the current bad economy. Rich but cash-poor people are turning to pawn dealers to get the financial leg-up they need, just to go through a temporary slump.

There has been a rise in high-end pawn shops in the last couple of years. The reputation of pawn shops being dingy places has all but vanished because, people of the caliber of people who take out pawn loans. These pawn shops are no different from the traditional pawnbrokers. Everyone visits a pawn shop for the same reasons: They need money quickly but they don’t necessarily want to lose their valuable items or they may have something valuable they have no use for but are loath to throw it away. The reasons why rich people use the services of pawnbrokers may vary but they are no different to he reasons regular folk have. The difference between regular people and rich people is that the rich tend to have lots of expensive items. Regular folk may not have designer brand jewellery but the little gold they have might be precious to them.

Here are some things that the rich, the poor and everyone else who might find themselves contemplating a pawn loan should know.

• Customers bring their valuable items to a pawnbroker
• The pawnbroker will have the item appraised. He will give the customer a quote based on that evaluation and factor in the interest rate. A pawnbroker will not do a credit check as the item serves as collateral for the loan.
• If you agree to the quote and the condition of the loan. You leave your items behind and walk out with the cash you needed.
• A pawnbroker will issue an pawn ticket that will have the description of your item, the loan amount and the date when the loan will be due.
• The customer can redeem their items by paying back the loan with interest. Failure to do so means that the customer forfeits the item and the pawnbroker can sell the item to recover the money owed. However there are pawnbrokers who will make provision for customers to extend the loan if the interest is paid on time.

Know who you are dealing with

Not all pawn shops are the same. Some pawnbrokers are extremely professional and will go out of their way to ensure that you get the best price and service. Others can come off as haughty brokers who are just itching to swindle some unsuspecting people. To avoid this as a seller, a little bit of research and some deep diving into the industry itself will help. Ask as many questions as you need to and shop around, the first quote you get might not necessarily be the best.

With extensive research and study, Simon passionately creates blogs on divergent topics. His writings are unique and utterly grasping owing to his dedication in researching for distinctive topics.