What are the advantages of using a Pawnshop instead of a Pay Day Company?
Use a pawnshop because it offers the borrower a quick and easy way to get a short-term loan without credit checks and without legal troubles if the loan is not repaid. Unlike payday loans, a pawn loan does not cause people to over-extend credit, go into bankruptcy or have their wages attached for non-payment of the loan, nor are hidden costs associated with a pawn loan. If a person has trouble paying bills with their normal income, borrowing on their future earnings, (payday loans) puts them deeper into debt. With a pawn loan, the worst that could happen is that they loose the item that is pawned, no further debt. Additionally, once the pawn is redeemed, (picked up) the borrower can reuse that item to get a loan another time. It becomes an asset that almost always guarantees the borrower of that needed emergency money.
Use a pawnshop because it offers the borrower a quick and easy way to get a short-term loan without credit checks and without legal troubles if the loan is not repaid. Unlike payday loans, a pawn loan does not cause people to over-extend credit, go into bankruptcy or have their wages attached for non-payment of the loan, nor are hidden costs associated with a pawn loan. Pawnbrokers are tightly monitored and controlled lending institutions. If a person has trouble paying bills with their normal income, borrowing on their future earnings, (payday loans) puts them deeper into debt. With a pawn loan, the worst that could happen is that they loose the item that is pawned, no further debt. Additionally, once the pawn is redeemed, (picked up) the borrower can reuse that item to get a loan another time. It becomes an asset that almost always guarantees the borrower of that needed emergency money.
