Monthly Archives: February 2017

How Does Pawning Work?

In various articles on this site, I recommend that you check out pawn shops as a source of inexpensive, secondhand items. You can find electronics, jewelry, furniture, guns and loads more at these types of places, and usually for a good price. Buying from a pawn shop is pretty straightforward. You see the item, haggle a bit on the price and that’s that. But what about selling items or trying to get a loan? Will, I have touched upon selling items to a pawn shop before, but there are some inner workings and things that anyone should know before doing anything like this.

I found this good piece of reference material from https://www.nationalpawnbrokers.org/ that I think would serve as valuable information to anyone who would deal with a pawn shop. Whether you are interested in selling an item or want to pawn jewelry, you should check these out:

1. What does a pawn store do? The core of a pawn store’s business is making collateral loans. Pawn stores offer loans, secured by something of value. The pawn store may have other business elements such as retail sales. However, pawnbrokers focus on lending money.

2. How does a pawn loan work? Customers bring in an item of value, and the pawnbroker offers a loan based on a percentage of the item’s estimated value. The pawnbroker then keeps the item until the customer repays the loan with interest and any additional fees that may apply. Pawn stores are regulated on a federal, state and local level.

3. How much money can I get for my item? On average, customers receive only a portion of the item’s retail value. Remember, the pawnbroker is loaning money on the item, not buying it. The pawnbroker must consider the cost of storage, security and future demand for the item, along with the resale value if the loan is not repaid. The average loan amount nationally is $150. However, loans can be made for any amount, depending on the value of the pawned item.

4. What kind of interest rate will I have to pay on the loan? Interest rates vary from state to state and usually amount to less than bank overdraft fees, utility reconnect fees, or credit card late fees. As an example, an $80 pawn loan at 20% for 30 days would cost about $16. Compare that to an overdraft fee or a credit card late fee that may negatively affect your credit.

5. What do I need to do to get a pawn loan? In order to secure a pawn loan, you simply need an item of value and proper identification. Pawn loans do not require a credit check, bank account or co-signer.

6. What happens if I don’t repay my loan? Defaulting on a loan can never affect consumers’ credit scores. Because the loan is based on collateral—that is, an actual piece of property—the loan is considered paid in full when the item is handed over to the pawnbroker.


Saving On Common Items

wallet-669458_960_720Are you trying to save every penny possible? Are you the type of person who will bask in the glory of money well-spent and saved? Is “frugal” your middle name? Do you despise extravagance? If you have these characteristics, then keep on reading, because you are going to learn some different and interesting ways that you can save money on virtually everything. So with all that said, let’s get right into it.

When it comes to things like groceries, you can save quite a lot of money by buying in bulk. This will require a bit more planning, but buying things like meat, cheese, and various non-perishables in large quantity will allow you to save a lot every month.

Electronics like TV sets, video game consoles, computers and other home entertainment equipment should almost always be bought used or refurbished. They will typically work just like new and can be obtained for a fraction of the cost. Places like pawn shop Hollywood will carry these items in good supply, so it would be a good idea to check them out.

Clothes can be gotten secondhand, and pretty much everyone knows this, but what about buying them from outlet stores? Many outlets carry name brand items (like shoes, jackets, purses and more) for a fraction of the original cost. This can allow one to have the fancy, and quality items for cheap.

Things like furniture can also be gotten used. Sites like craigslist are an invaluable source for items like couches, dressers, shelving units and more. You may need to do a bit of searching, but one can literally furnish one’s home completely in this way for only a few hundred bucks.

These tips can help you save big, so good luck on getting them into use.