When the household income doesn’t meet the outgoings, the usual place most will go is to the bank for a loan until things pick up. The problem with banks is that they have criteria and most people in financial difficulty will not be accepted due to the risk of them not being able to pay back. Pawn shops take many items as collateral for a cash loan including cars, which has and continues to help people in financial hardship to get back on their feet.
If you are deciding whether or not to pawn or sell your car, you should first look at the implications of both. Selling your car could mean you become reliant on public transport and friends and family, which are not always a viable option. It will mean that in the future you will have to look at getting a new vehicle to get you to and from. Choosing to pawn your car will mean that you will still be able to drive it around, you just have to hand over your log book to the pawn shop until the loan is repaid.
Using a pawn shop can give you the breathing space you need to get back on track and help in times of crisis, such as your washing machine breaking down or unexpected medical bills. When the time to pay your loan back is up, most pawn shops will offer you the opportunity to renew it for a further period if you are still struggling. To extend the loan all they ask is that you pay the interest.
Lots of people choose this option because it allows them to still use their own method of transportation and free up cash that is desperately needed for a period of time. Unemployment is one of the main reasons people find themselves unable to meet the demands of creditors and even day to day living due to their reduced income.
Unfortunately companies and banks that offer loans perform credit checks, but pawn shops don’t as they use the vehicle as collateral. If you find yourself in a position where you have to decide whether to pawn or sell your car, then know that you don’t have to change the way you get around. Pawn shops are understanding of all kinds of situations and happy to help at the time you need it most. There is no judgement or refusal, everyone is welcome and in most cases the cash will be given to you the very same day!
Waiting for a loan from a company or bank could take time which may be something you don’t have if you have bailiffs demanding payment. Using the car as collateral for a loan will also mean that it can’t be taken by debtors as it is not your property while the log book is being held. In this day and age no one should have to go without the things they need and this option means they don’t have to.