Did you know that only 40% of people running into unforeseen expenses have $1,000 in a savings account? Are you one of those people? If not, having money for medical bills to home repairs puts you in a problematic situation. So, what is there to do?
You can take out a personal loan from your bank. But having the time to get credit is not always possible. Luckily a pawn shop Brisbane dealer is there to help. A fact is that 80% of Australians turn to pawnbrokers in times of need.
You can sell gold jewellery or pawn it for money fast as the precious metal remains valuable. But what option will work for you.
Pawning Gold Jewellery
Yes, this is where pawnshops received their name. When you visit a dealer with your valuables, they give you a loan against the item’s worth. Hence, you hand it over as collateral. It is similar to taking out collateral backed loans at the bank.
Once the loans are repaid, you retain ownership of your valuables. If you do not refund the money, the gold becomes the dealers item to sell to cover the loss. Following this route has benefits as it is temporary as you are not getting rid of your precious metal.
You are only borrowing money against the value of the gold piece to get it back when meeting your obligations. The other benefit is it does not involve a credit check like taking a loan at the bank. Hence, the regulations on loaning money from the pawnshop are not strict, like taking a bank loan.
All that the pawnbroker cares about is the value of your gold jewellery. You can also get money fast and need not wait weeks for your loan approval ending up without cash in the end if not approved. The downside is that you need to pay interest in a specific time or accrue more with personal loans.
If you do not repay the money, you risk losing your items as it becomes the pawnshop’s property to sell.
Selling Your Gold Jewellery
This is another option you have dealing with a pawn shop Brisbane dealer. A pawnbroker buys items outright and offers based on the jewellery valuation. You also get cash in hand without the need of waiting. Hence, you will walk out of the shop with money in hand. When you pawn gold items, you receive a fraction of the item’s worth.
But when you sell, you can walk out of the shop with the total value of the jewellery. You also do not need to scrape money together after 30-days to repay a loan and the interest owed. The biggest con is you cannot reclaim your item, and you will not have that item available to pawn in the future.
So What Will It Be Pawn or Selling Gold Jewellery
There is no right or wrong when pawning or selling valuable items. All you need to do is assess your needs to determine what works best for you. For example, pawning and selling gold jewellery will bring you fast cash, whether you need money fast. The only difference is to think if you can repay the pawn loan.