Imagine being down on your luck having little to no money and unable to raise it from friends or the bank – what do you do? You could take a payday loan butan annual interest of 400% might just get yourself into a debt cycle where you keep borrowing to pay off previous loans. Look at the valuable things you have like that gold watch that your grandfather gave to you. It’s family heirloom and you might have been planning to pass it on to your son. However, you need to provide food for yours son, or get some medical help, or ensure he continues having a roof over his head by paying your rent, etc. You have immediate needs that require immediate solutions. Pawning that gold watch can help you meet those needs when you pawn it to a local Pawnbroker Brisbane.
Millions of Australians frequent Pawnshops to get a loan in exchange for valuables like gold jewellery, electronics, musical equipment, etc.
Pawnbrokers don’t always work the same. So, if you have something valuable to pawn you should keep that in mind and get a quote from as many Brisbane Pawnbrokers as you can. If you took your gold watch to about 5 different pawn shops you might get offers that differ by more than 200%. This might be puzzling but Pawnshops work differently to other financial service providers. It would be helpful for anyone wanting to do business with them to understand how they work.
Pawnshops are usually the last resort for most people. This is because you are required to bring something that is valuable to you and may hold some sentimental value and risk losing it if you can’t pay your loan back. They are convenient for people who need fast cash to cover an emergency situation. Most people who live from paycheck to paycheck will not be able to cover an emergency expense of $400 (for example).
On average pawn shop loans start from about $100 and can go up to thousands depending on the value of what is being pawned. However, they can rack up a considerable amount of interest.Interest rates may vary from 2.5% per month or 30% APR to 25% / month or 300 APR. The later may be considered predatory but it is not as bad as what payday loan lenders charge.
Pawnshops give out loans but they also buy items to sell in their stores. When people don’t pay the loans back the Pawnbroker can sell these items. However, most people do return for their items which are ideal for Brisbane pawn brokers because it takes away the added cost of having to sell the pawned goods.
When a Pawnbroker works out how much he should offer a customer he looks at the resale value of the item and how easy it would be to sell it if it is not redeemed. However, making judgements like these on unique items like that old gold watch that has been passed from generation to generation can be subjective which is why the offers from various Brisbane Pawnbrokers will be so different. Be sure to find out what your local pawnbroker typically offer of the kind of items you want to sell.
Marina Pal is a renowned author and social media enthusiast.