Talk to a pawnbroker before you take a payday loan


When you are short on cash it might be tempting to leverage your wallet against your next paycheck but you should be careful. Payday loans are a slippery slope. They may offer short term relief but a lot of people neglect to read the find print carefully and find themselves in a never-ending cycle of debt. 

A lot of people have good intentions and may even have a plan to pay the loan and interest but when the loan period comes due they find themselves in need of cash. This can lead to customers digging an even deeper hole that will take them more time to get out of. 

Pawn shops operate differently. Instead of offering unsecured loans, they offer loans against valuable items like gold and jewellery. The loan plus the interest and fees has to be repaid within a specific period. If the borrower fails to repay the loan, the pawnbroker can recoup the money by selling the items. Alternatively, the borrower can repay the loan and use the same item to get another loan. You can keep using the same item to get loans as often as you need to. If you don’t need the item you should just sell the item to the pawn shop and walk away with the cash. 

Payday loans may seem like a good idea because like pawn loans, you don’t need to have good credit but unlike pawn loans, you don’t need any collateral. The problem is that they have incredibly high interest rates and fees can add up pretty quickly. 

Payday lenders may not operate like loan sharks when it comes to collecting their money but they to skate close to the edge of loan shark-like behaviour with how they raise or compound their interest rates. You might find yourself with a 390% interest rate that could even go as far as 800%.

The best solution to your short term money issues is a pawn shop not payday loan lenders. 

Pawnshops are there to offer cash to local communities who need it. The loan is secured by the item that you pledge, so even if you do fail to pay it back, you don’t find yourself in an even bigger mess. You simply forfeit what you pledged with. No compound interest, no perpetual cycle of debt and repayment. 

Pawnbrokers Brisbane do not conduct credit checks, nor do they want to see your payslip. They offer collateral based loans based on the value of your items. The interest rates are reasonable and even though they will sell your items if you fail to repay the loan on time, that is not their ultimate intention. Pawnbrokers Brisbane thrive from return business so they want you to get your valuables back so you can have them when you jappen to find yourself in another cash flow situation in the future. 

Pawnbrokers are even prepared to work with you to resolve your financial issues causing you to default on your loan. They will give you as much wiggle room as you need so you can find a way to get yourself out of this same current perpetual state of financial strain. 

Beulah Kshlerin

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