Posted by JD Seller on January 01, 2014 at 12:47:56 from (208.126.196.144):
In Reply to: pawn shop posted by the flying belgian on January 01, 2014 at 12:18:25:
The other guys have pretty much nailed how they work. You just are "loaned" money against items you bring in. Then you have so much time to pay the loan back or you forfeit the item you put in "pawn" for collateral for the loan.
I never have "pawned" anything but I have bought a lot of stuff at pawn stores. There are two that call me when they get certain things I collect/buy.
You can get good "deals" but you also can get skinned too. I have never met a "poor" pawn store owner. So your dealing with a modern day money changer so just go in with your eyes WIDE open and you will be fine.
I would rate Pawn shops a few steps above the PAY DAY loan and car title loan places. They all are preying on people that "need" money NOW. Mostly poor people or people just with Poor money management skills. Not the most moral business in town in my opinion. They charge handling fees and other charges that make the effective "interest" rate in the 25-50% range.
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