Credit crunch good news for pawnbrokers! Anyone used one?

[GlasgowGirl]

Apparently, the pawnbroking industry is growing at a rate of 10% a year, as people who are unable to get credit turn to pawning their possessions to get by. But pawnbrokers' customers can find themselves paying interest rates of 84% APR! So it's a very risky way to borrow.

Has anyone ever used a pawnbroker, whether the old-fashioned traditional type or the new-style Cash Converters type of place? Would you ever consider using one?

[katealpha]

I never used a pawn shop but we have sold a few things at auction. I don't know why exactly but I would be worried that stuff in pawnbrokers is stolen. I've looked at stuff in Cash Coverters to buy but never managed it yet.

[scotchlass]

I have had a look in places such as Cash Converters but never sold or bought anything there. I too hold the stereotypical (and probably unfair) view that pawnbroker items could be stolen goods !

[rodmason]

The interest rate is only about 8% per month so they are good for short term loans (but a full 6 month agreement would be 6 x 8%).

It's unlikely thieves would try a pawnbroker to get rid of stolen goods, since your photo is taken and you have to give ID (it's all regulated by the Consumer Credit Act etc).

Try Herbert Brown jewellers and pawnbrokers in the East Kilbride shopping centre..

[Tony]

Thanks Rod for the clarification, but it is a bit of a trip from Bolton. Has business improved with the Credit Crunch for you?

[scotchlass]

Rod mason, thank you for clearing up and changing my stereotypical view of Pawnbrokers!