The Fastest Loan You'll Ever Get

 In these depressed economic times, it's not unusual to have more month than money. To help pay bills, lots of people turn to their local pawnbroker for a quick fix.

The modern day pawn shop is a far cry from the seedy, dark, and notorious place for "fencing" stolen merchandise formerly seen in movies. Today, pawn shops are bright places, with a variety of goods at great prices. They are  regulated more by state laws and monitored more by the sheriff's department and the police than flea markets, making them more secure for those wishing to pawn, sell, or buy anything of value.

Gold, Guns, Guitars

Most people want to know what they can pawn for money at a pawn shop and how the whole pawning thing works. At our pawn shop, Harrisburg Music & Trading Company (www.harrisburgmusic.net), we give the most money for the three G's - guns, gold, and guitars.  Of course, we'll consider anything of value that's in good, working condition, including game systems, jewelry, tools, clothing, musical instruments, etc. But, if you need top dollar now, your best bet is to take in a gun, anything gold, or a guitar (especially if it's vintage).

You can't expect to get what you paid for your merchandise, but you can expect to get something. Here's how it works:

You take in a piece of merchandise and the pawnbroker will ask you how much you need to borrow:  It's a good idea to have the amount you want to borrow in your mind, but quite frankly, it's probably more than you're going to get, since we all want what we paid.

Once an amount has been agreed on (i.e., you take what the pawnbroker is willing to loan), you fill out a pawn ticket. You will have 90 days before you have to claim your merchandise or lose it. After 90 days, it legally becomes the property of the pawnshop. During that 90 days, you can come in and make interest payments and renew the merchandise for an additional 30 days.

The cost of loaning you money is charged as interest to you. Depending on the state you live in the interest varies. In North Carolina the usual cost is 20% per month. So, if you get a $10 loan, and you pick your stuff the first month, you will pay $12 to get it back. If you pick it up the second month (it's now been in pawn 60 days), the cost to pick it up will be $14. And, if you wait till the third month to pick it up, it will cost you $16 to pick it up.

You might think 20% is a lot to pay on a loan, but maybe you should look at your next credit card statement and see what the banks are charging...

If you don't pick your merchandise up, the pawn shop then has to find someone to buy it, hoping they will profit from the deal.

Pawn shops are also a good place to sell items you no longer want. Once again, be reasonable about how much you want to sell your stuff for. Remember, things are only worth what someone will pay you for them. By selling at a pawn shop versus selling online, you get to keep all the proceeds without having to pay any fees. You'll also make more money on an item you want to sell at a pawn shop versus selling it in a yard sale, since pawn shops will pay more than yard sale prices.

Lets' face it, you can't walk into a bank and get a $100 loan to pay your electric bill and they certainly wouldn't take your guitar as collateral, let alone store it until you can come pick it up. Sometimes, you just need a little short-term help. 

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