Do you have a bill that is starting to get behind? Do you feel as if you are falling into debt? If so, you’re not alone in this situation. In America, the average household has around $5,800 credit card debt per month. Being in debt is a situation that some people go out of their way to avoid due to the consequences, and some pay even go for a paycheck advance.
Since there are better options for getting emergency money, a paycheck advance isn’t effective. Pawnshops tend to get tossed into the same category as an automobile title loan lender. However, in all actuality, pawn shops are a much better alternative than paycheck advance.
Many pawnshops give the loan borrowers the opportunity to buy the item back, since the item was given as collateral. Below are some reasons why pawning your merchandise is a better option than paycheck advance …
Not Going to Hurt Your Credit Score
When you pawn an item, it’s not going to hurt your credit score, like it would if you were to get a payday advance. Most pawn shop owners won’t even focus on your job, all they care about is the value of the item you’re giving them to secure the loan.
The difference between pawning and a payday advance is that a pay advance can ruin your credit if you don’t pay the money back as agreed. As for pawnshops, if you don’t pay the money back, they’ll simply resell the item in order to make up for their losses. Other than that, there’s no other consequences to not paying a pawn shop back.
Paycheck Advances May Sue you
If you have debt with a paycheck advance and it goes past due, the account will go to the collections and they may sue you. This will result in negative credit marks that can star on your report for the next seven years.
Get More Money at the Pawnshop
When you go for a paycheck advance, the loan will be based on how much you make each month. Some states have a limit on the amount of money people can borrow from lenders. The pawn shop, on the other hand, will lend you money based on the merchandise you’re handing them as collateral.
Most pawn shops will give you between 25 to 65 percent of the item’s value. For example, if you have a ring that is worth at least $1,000, then you may be able to get up to $600 for it if you were to pawn it.
On an ending note, compared to pay advances, pawn shops have lower interest rates on their loans. By choosing to pawn your items, instead of getting a payday advance, you will be preventing the cycle of debt.
However, in all actuality, pawn shops are a much better alternative than a paycheckadvance. If you want to get instant loan, so Majorpawn are best options for getting emergency money.