Are pawn shops as bad as payday lenders and other vendors of despicable debt? I’ve thought a lot about it, and I’ve come to the conclusion that they are not. In fact, I think I like pawn businesses better than just about any other form of lending out there.
Why? Because pawn lending doesn’t trap anyone in debt. The thing that makes debt so financially dangerous is that it follows you around throughout life until you’re able to pay it off, taking a bite out of your budget every month along the way. And what makes debt so terrible is that lenders intentionally trap poor people in a debt position that they’ll never be able to escape.
But pawnbrokers don’t trap anybody into anything. By the very nature of the business, you can never be “in debt” to a pawn shop. You can never roll over a balance from month to month, and you can never have a mounting total of interest, fees, and other payments. The proposition behind pawn is simple: If you are able to pay back the loan and interest, fine — you’ll get your item back. If you never pay it back, though, no sweat. The pawnbroker will still make his money back by selling your item, and you’ll walk away debt-free.
Pawn shops are a great example of a business that serves the poor without trapping them in long, inescapable cycles of debt. You may not like the idea of someone parting with a dearly beloved piece of jewelry or a family heirloom to get some quick cash. But if you’re able to separate the emotions from the transaction, you realize that pawn is a pretty fair deal for all parties involved. If you need quick cash, it’s certainly better to pawn a valuable item than it is to take out a payday loan.
At Gold Dollar Exchange, we specialize in buy-back loans using your precious items as collateral. Give us a call today to set up an appointment, and we can offer you the service that best suits your needs!
Gold Dollar Exchange – Gold and Jewellery Buyers
245 Main Street East, Milton, ON | L9T 1P1
Halton Area: (905) 699-3603