Extra Money : Ebay, Pawn Shops, Garage Sales
Seems like, with the high gas prices and faltering economy, we’re all looking for ways to rake in a little spare change - or a lot of spare change, depending on whether you are one who has also been affected by the massive layoffs that have occurred as of late at many major companies. Unfortunately, some are having to part with their precious belongings to make ends meet until the rough times are over.
Pawn shops are gaining in popularity as more people need fast cash for necessities like food, utility bill payments and gas money. We’re seeing more pawn shop business growth in the last several years as the economy is crunching budgets with high inflation coupled with the increase in job losses.
The way pawn shops work is that you bring in some of your possessions and it will be given to the pawnbroker as collateral so they can give you a loan. Next, the pawnbroker will loan you money based on the value of your collateral.
Once you have repayed the loan with any interest that has accrued, the pawnbroker gives your collateral back. In the situation where you do not repay the loan as agreed, the pawnbroker will keep the possession you brought in as collateral.
The pawnbroker is the person who loans money on the basis of pledged goods. The pawn shop is the place of business for the pawnbroker. A pawn transaction is redeemable within 180 days unless it is renewed and the end result is the power of sale of collateral if the loan is defaulted.
The interest rate is, as an example cited in N. Carolina, a maximum of 2% per month. Annually, that is about the same as rates charged for credit cards. There are other fees to watch out for such as handling, storage or insurance fees.
At the end of the 6 month period, you either have to pick up your collateral or initiate a new loan on your possession. If you do not do this, the collateral then belongs to the pawn shop and they can sell it.
Even with the economic crunch, remember if you are using a pawn shop to gain quick loans, don’t bring in family heirlooms of great sentimental value. In the event that you can’t make the loan payments, your precious heirloom may be gone forever. Keep your collateral to impersonal items you could live without such as high tech electronic devices.
Other options for economic crunches are listing items on ebay or Craig’s list for sale to gain possible quick cash. Garage sales don’t compare as favorably as the resale value on your possessions are often as low as 10 cents on the dollar.
