How Pawnshops Work
A pawnbroker makes loans on personal property left as collateral. The property can be redeemed when the loan plus interest is repaid.
The interest rates for pawnshops, which may be regulated by state or local laws, may range from 5% to 6% a month. Loans can usually be renewed, but only if the interest for the original period has been paid.
Pawnbrokers will accept a variety of personal property as collateral. Usually, items that are small or of modest value (jewelry, clocks, computers, camcorders, silverware, etc.) Brokers won't lend more money than they think they can get if the pledged item is not redeemed and has to be sold.
When a pledged item is not redeemed, brokers are required to notify pawners that the loan period has expired and to give them a final opportunity to redeem their personal property before the broker has the right to sell the item. In some jurisdictions, brokers may keep all the money received from the sale of the unredeemed pledge. In other cases, the broker may only keep the original loan and any interest due, but must turn any excess over to the pawner.
In many states, pawnbrokers are required by law to file with the local police a daily list of items that have been pledged. They must report and give a description of the object along with serial number and other points of identification.
This gives the police an opportunity to check these pledge items against any list of reported stolen items. In somebody buys a stolen item from a pawnbroker, it must be returned, and the broker must refund the purchase price to the customer.
DEBT LIMIT. Installment debt should not exceed 10% of take-home pay. A debt ratio of 20% indicates trouble ahead. However, when computing for your debt ratio, you must not include mortgage payments in the amount of debt.
Related Articles
How to Beat a Speeding Ticket
The most important aspect to consider in avoiding a traffic ticket is to be aware of where you are in the current traffic pattern. Many people will tend to slow down for the first two days after receiving a ticket. But a lot of people don't.
Guide To Police Scanning
Agencies may designate and use 10-40 and above to suit their own needs.
Fly Smart
When you fly on the commercial airlines of the United States, you are flying on the safest, most efficient form of transportation.
What Your Social Security Number Tells About You
Your social security number is a unique identification. You are the only person who has that number. But did you ever wonder what the numbers in your social security number mean?
Your Consumer Rights
Consumer credit reporting agencies (CRAs) collect credit information on you from banks, department stores, credit card companies, and other types of financial institutions that may extend you credit.
Understanding What is Going On Behind The Scenes
Has anyone noticed that the world is growing wickeder and wickeder? I sure have. Can you remember a few years back when human beings would give each other the benefit of the doubt rather than jump to conclusions?
Why "Lottery Systems" Don't Work
It is very tempting to play the lottery. Just last week, there was a lottery in my area that had a grand prize of $110 Million! What you could do with all that money. Unfortunately, the odds of winning that prize were 1 in 54.9 Million.
Why Buying is Not Always Better Than Renting
How many times have you heard that you should buy a house because it is an investment and when renting you have nothing to show for it? And that your monthly mortgage check would build equity for you?
Social Security Information
Social Security is a social insurance program that provides old-age benefits for retirees and their survivors, disability insurance for workers and survivor benefits for dependents.
Fifteen Things You Should Know when Ordering Anything from Anyone by Mail
Have you ever sent away for something by mail and waited... and waited... and waited? Maybe you didn't receive what you wanted or what you thought you were ordering. Perhaps you didn't receive a reply at all.