Have you ever pawned anything for instant access to money?
We all know there are thousands of shows out there on Pawnbrokers with every single town and niche getting its own show. We all know the TV personalities out there and how they interact with each other and so no. We know that these shows can be pretty entertaining.
But, do we really know what this whole industry is all about?
Before we move any further, let’s look at what a Pawnbroker is (according to Wikipedia):
“A pawnbroker is an individual or business (pawnshop or pawn shop) that offers secured loans to people, with items of personal property used as collateral.”
Pretty simple, right?
So then why all of the fuss about these pawn shops and their operations?
I believe it’s because we are amused by the items that someone would pawn in order for some money. Sitting at home we can’t relate to the person since we don’t know what’s going through their mind. It’s easy to judge from your couch. If you live with your parents, have a job, and lead a pretty decent life, you can’t really relate to someone in desperate need of money. It’s impossible.
So we watch to see what someone is willing to trade in for money and how low they’re willing to go. It shocks me sometimes to see a person settle. But once again, I’m not in their shoes so I can’t judge.
We can’t help but see what will be brought in next. I personally have gone into pawn shops just to see what they have for sell. I’ve always been pleasantly surprised by the items on display.
You want to know something else about pawn shops?
I did some research and found an interesting article over at Business Insider about the pawning business. I will share a few of the facts below:
- Since the recession of 2008, cash-for-gold transactions shot up 35 percent.
- Pawnbrokers have also reported more visits by small business owners trying to make their payroll.
- 85 percent of those who take out the loans still pay them back.
- 20 percent of pawnshop customers are unemployed.
What does this all mean?
That some people need money and have nowhere else to turn. A bank won’t always give you a loan. Your friends or family will ask many questions or they just won’t have access to the money to help you. So we turn to pawn shops. I’m not judging. Things happen in life. Everything could be running smoothly one day and then down the drain the next day. Many things are out of our reach. When we need money we tend to panic.
While it’s easy to judge Pawnbrokers and those that use them, I’m really interested in the whole operation.
I’m curious to hear if anyone reading this has ever gone into a pawn shop and what the experience was like?