It is a worrying truth that any one of us could find ourselves in a spot of financial bother. All that it takes is one unexpected bill, a reduction in hours or pay, or a surprise redundancy. We have no control over any of these things, and however adept we are at planning, there is very little we can do to guard against them. When they do strike, they each cause one unavoidable problem: you no longer have access to the capital you need to keep yourself in the black.
Some people are lucky enough to have family and friends that are willing to support them until they can get back on their feet, but the majority of people who find their debts mounting are forced to turn to various borrowing options instead. One of these options is to approach a pawnbroker like H & T.
Pawnbroking is a simple, yet widely misunderstood, concept. Contrary to the popular image of the miserly old man in a darkened junk shop, it’s a very well regulated industry, and can be an ideal borrowing solution for an awful lot of people. If you’re beginning to consider your options, here are a few things that you might like to know.
Pawnbroking is Very Accessible
A major benefit of borrowing from a pawnbroker is that capital is very accessible. As you’re handing over an item as security, there is little need for credit checks, so you will very rarely find yourself being refused a loan.
This money is not only easy to get, but will usually be handed over as soon as the item exchange takes place, and a contract can be drawn up and signed. This process rarely takes more than 24 hours, meaning that you can get your hands on capital as and when you need it.
Pawnbroking is Flexible
An added boon of borrowing from a pawnbroker is the flexibility of the arrangement. Although most contracts last for around six months, you’ll be able to reclaim your item earlier if you have the money to repay your lender before it ends.
Pawnbroking Limits Your Indebtedness
Perhaps the greatest advantage of choosing a pawnbroker over more popular borrowing options is that your debts are effectively capped. This is because of how pawnbroking works. Ordinary lending methods will charge you added interest if you fail to make repayments on time. If you find yourself unable to repay the money you borrow from a pawnbroker, however, they will recoup this by selling your asset, rather than increasing the amount that you owe them.
If you’re looking for a short-term borrowing solution, could a pawnbroker be the ideal lender for you?