Wednesday, September 18, 2013

Short Guide for Smart People: Getting a Pawn Shop Loan

Image of: neon sign that says loans with dollar sign.
There's a right way and a wrong way to get a pawn shop loan.  There's also a right time and a wrong time.  Here, we're going to tell you how smart people get pawn shop loans – about the right way AND time.

But first, let's consider why you're getting a loan from a pawn shop. 

Hopefully it's for the right reason. 

For instance, perhaps you're late on your apartment rent and need some fast cash to pay off your debt.  Or maybe you need to pay the gas bill so you can cook and eat things other than canned food.  Or maybe you're starting a new business and need some money to pump into it.  These are all good reasons to get a loan, as long as you believe you can pay it back within the time the pawn shop gives you.

You don't have forever to buy your collateral back from the pawn shop.  This is why you need to make sure the time allotted by the pawn shop for buyback is sufficient. 

Do it the Right Way

The only reason you're loaning instead of selling is because, eventually, you want to get your piece of collateral back.  If you don't care about it, or don't need it, you can just sell it.  There's no point in taking out a collateral loan from a pawn shop if you don't intend on getting the item back.  If it makes no difference to you whether you own the item or not, just sell it.  Don't waste your time with the loaning process.

However, if you know you want to keep the item for yourself or someone else, make sure you're positive you'll have the money in time.  Since pawn shops only give you a limited time to buy back your collateral, it's not wise to take out HUGE loans.  Only take what you need and don't get greedy.

If you get smaller loans, or loans within your means, you have the greatest chance of getting your collateral back without complication. 

In addition to doing it the right way, make sure you keep your loan receipt.  This prevents a world of future hassle when you go to buy back your collateral.

Do it at the Right Time

When you need money, you need it.  And when you're making just enough to get by, it's hard to put a timestamp on cashflow.  But just because you can't judge your cashflow doesn't mean you can't have control over when you take out a pawn shop loan.

Although it's tempting to give something valuable up (a car?) for a wad of cash, it's unlikely you'll pay it all back ... unless you know you're getting paid a substantial sum, within the allotted time the pawn shop gives you. 

In this case, if you ABSOLUTELY needed money NOW, it would be the right time to make that decision.  On the other hand, if you weren't expecting a large cashflow to buy back your collateral, the time wouldn't be right.  Since you probably need your car to get to important places, basing a loan on it is not worth the risk.

Instead of asking for a loan, maybe it's a better time to sell.  And if one item won't cover your debt or expenses, try selling several things.  Things you can live without.  Taking out a pawn shop loan smartly is all about timing and prediction.  If you can strongly predict you'll pay off your loan in the allotted time, getting a pawn shop loan may be a good idea for you.

Monday, June 3, 2013

Going Green

There's a lot of talk about going green, and we are all doing our part. Sure, you recycle cans and plastics and glass, you shop for products made from post-consumer recyclables, you try to be energy efficient around the house and where you work, you've swapped out all those old bulbs with energy efficient CFL bulbs, maybe you even drive a hybrid or you've been thinking about those all-electric cars...but have you given any thought to one of the easiest and most cost-efficient ways to help recycle?
Buying pre-owned. Let's take a look at some benefits...

Friday, April 19, 2013

A Little Lesson About Loans

A little lesson about loans

It happens.

Every now and then, from time to time, emergencies pop up, the unexpected happens, or sometimes that paycheck you are counting on is delayed. The point is, it happens to everyone…you need just a little help to get by. We're glad to be there to help with our short-term, collateral-based loans, as you know. The rules behind these collateral-based loans are all set out by the Florida State Pawnbrokers Act, but let's be honest here…that's a pretty dry read. I'm getting kinda bored and sleepy just mentioning it.

Lucky for you, we're going to distill it down to the basics.