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byAlma Abell
Many consumers have never needed to raise money from a pawn shop until the most recent recession. Job losses, wage cuts, and mortgage problems have caused financial difficulties for many people. In some instances, there isn’t enough cash to pay for basic needs such as groceries. If banks are not willing to lend money to a consumer anymore, there are few options available. One option to consider for instant cash is to go to a pawn shop to pawn or sell an item. It can be helpful to understand the process of raising cash at a pawn shop.
To raise the most money possible from a pawn shop, it is best to sell a valuable item to the store. Jewelry, especially items with a significant amount of gold, silver, or diamonds, can result in a lot of money for the consumer needing instant cash. The consumer brings in the item to be sold. A person at the store will look at the item’s condition and marketability to figure out how much to offer. Of course, the store has overhead to pay as well as profits to the owners. Consumers should know that they will get less than the current market value of the item due to overhead. It is expected that some consumers will negotiate with the store in order to get more money for the item. Once the item is sold, the consumer is paid in cash immediately.
The other way to raise money quickly is to pawn the item rather than to sell it. Pawn shops such as the Sam Light Loan Company are willing to offer loans with valuable items as collateral. This is a good choice for those that want to keep their items while raising money at the same time. This will result in less money raised versus selling the item. When an item is pawned, the borrower is immediately given the loan funds and a ticket to reclaim the pawned item within a certain period of time such as 90 days. If the loan is not repaid prior to the ticket expiring, the pawn shop will take ownership of the pawned item and is free to sell it in the store. To reclaim the pawned item, the loan has to be repaid in full with interest. It may be possible to extend the loan with a small partial payment.