You might have thought that Pawning Items is a poor mans way to come up with money he doesn’t have. It is rumored that Queen Elizabeth Pawned the Royal Crown to fund Columbus’s Expedition to the Indies.
Here’s the Facts:
- You bring an item of value you want to get some money for
- the item is appraised
- you are given an offer from a pawnbroker as to how much they will give you for it
- you accept or deny the offer or negotiate the offer
- you are given the money and every month you pay interest on the principle.
it’s as simple as any loan, but since it’s smaller amounts of money, the percentage rates are higher.
Just because someone pawns something doesn’t mean they are poor, it just means they have an asset that they temporarily need to liquidate to cover another expense.