Are Pawnshops Good for America?


Skye Parker


September 13, 2021

Some might say no looking at the way money is made, but when you see the true power of how a pawnshop really does benefit all parties you will realize how instrumental pawnshops are to Americans of all ethnicities, and income levels. Covid has been a killer of small businesses throughout the nation, pawnshops and pawnbrokers are no exception to this forcing many out of business.

Why Pawnshops Need to Stay in Business

Pawnshops are one of the oldest professions in the world. Yet there’s many people who have never taken out a pawn loan before or even stepped foot inside a pawnshop. Pawnshops are one of the fastest ways of trading any given item as collateral on a cash loan. Those who use a pawnshop have needs of all different kinds. Some need that extra cash while they’re living paycheck to paycheck and pushing through just to make ends meet. Others need a few hundred dollars to complete their vacation fund they’ve been planning for the last year. It may be for an unexpected emergency expense or even something as simple as just wanting some spending money. Pawnshops have such a wide range of uses and customers it would be a shame if they became “extinct” so to speak.

The Stigma With Pawn Loans

Pawnshops have a negative stigma based on the primary income of the pawnshop; pawn loans. Pawn loans at face value can seem a bit harsh and like they don’t offer much to the customer entering into the pawn loan. This is often thought because of the high interest rates that generally fall around the 5%-25% range. These loans are short period loans expected to be paid within 30-90 days or so. If you fail to pay your loan then you relinquish ownership of your item that was put forth as collateral. This alone can leave a bad taste in your mouth, thinking that people don’t have many other options and in their time of need, they lose their belongings on top of everything else. But now that you understand the basics of a pawn loan, let me explain the perks and why pawning benefits Americans nationwide.

Why a Pawnshop instead of the alternative?

It’s understandable to be asking this question! Many people of recent generations have little to no experience when it comes to pawnshops and pawnbrokers, and that's okay!

  • Convenience 

When you are in a pinch and happen to need money (we’ve all had the occasional unexpected expense to pay) it can be difficult to take care of whatever situation you find yourself in when payday is weeks away. Having an unwanted item can take weeks to sell online, and maybe you don't want to sell, what if you have valuable items that you will ultimately want back in the future? Yet you need cash now. Pawnshops are so easily accessible and the time it takes doesn't compare to online classifieds where you’re asked questions by people who aren’t really interested or who plan to meet you for the exchange, but you get stood up instead. With a pawnshop, you can walk in with your item and get cash the same day! Extremely convenient if you’re facing a payment deadline, and you need a quick exchange. The brightside is once you’ve taken care of the situation and no longer need money now, you can return to pay off your loan and get your item back.

  • Availability

Pawnshops are often sought out by those who don’t qualify for traditional bank loans. There are limits to those after all. What other option do you have if not a pawn loan? A Payday loan? Sure, but you have a lot more to lose over the course of a payday loan if you’re unable to pay it back, it doesn't just go away. You will be sucked into a cycle of debt until you find a way to free yourself.

  • Stay Out of Debt

Pawn loans are a blessing when it comes to keeping your life uncomplicated and debt free. When you enter into a pawn loan the real glory of it all is that you have so much less to lose than other loans for cash. We won’t damage your credit, or prevent you from owning a home later on, we won’t garnish your wages if you’re unable to fulfil your loan payments, you won't suffer from the major consequences of other debt incurring options. The very worst that will happen is that you will lose your ring, watch, playstation or laptop. Pawnshops help Americans in the long run keeping them on the path to financial stability.

  • Great Finds and Good Deals

Due to the nature through which they acquire each and every item, you can bet they have (just about) one of everything. You can find rare items you wouldn't be able to get anywhere else and at a steal of a deal. Selling all kinds of merchandise from Sporting goods, Flatscreen TV’s, Jewellery, Electronics and even Firearms you’re bound to find something you like and typically you’ll see it for half of the regular retail price. Regulars to our pawnshop enjoy coming in weekly to see what new items we have to showcase, this is because with the constant flow of things coming in and going out, you never know when you’re going to find something amazing for a price that can’t be beat!

Are Pawnshops Good For America?

You be the judge! Staying out of debt with a same day cash appraisal for my item of any kind while reserving the option to come and get it if I decide I still want it sounds great for the Americans I know. 

If you’re interested in a pawn loan feel free to call or visit Xtreme Pawn today.

(801) 876-1727 or Contact Us Online!