Category: money

When you need cash, one of the options you have is to go to a pawn shop. Using a pawn shop is sometimes a better option than, let’s say, a payday loan (USA Loans Near Me, Inc). You may be able to get cash at a pawn shop for less in terms of fees than you would from a payday lender. In fact, many pawn shops today have payday loan capabilities on site, so you really can compare the two intelligently.

How does a pawn shop work?

A pawnshop lends money to its customers based on items of value that the customer brings in. The items are typically things that hold their value over time, and are relatively easy to store. The customer provides this collateral in order to secure a loan.

The lender then gives the customer a loan. Interest rates will vary from one state to the next, and from one borrower to the next. In general, the interest rate at a pawn shop will be higher than you might be able to get from a bank on a personal loan, but will usually be less than what it is for a payday loan.

How much will a pawn shop loan?

Most of the time, a pawn shop loan is small. They average about $80. Some pawn shops will lend as little as $20 or as much as $1,000 or more, depending on the collateral that the customer brings in. In most cases, a pawn shop won’t do a credit check on the customer, but if they do then that will also affect the amount of money they’re willing to lend.

How long does a pawn shop loan last?

The average length of a pawn shop loan is about 30 days. This can vary from one state to the next, as well. A pawn shop loan is typically longer than the 14-day average of a payday loan, but much less than the time frames of bank loans, which are usually a year or longer.

What happens if the loan isn’t paid?

Vinnie and his two goons will find you and make you pay.

Of course, that’s not true at all. That’s just what happens in the movies. In the real world, the item that the customer brought in as collateral just becomes the property of the pawn shop. The customer has a certain amount of time to try to pay back the loan once it’s overdue. That period varies from one state to the next (learn more about payday loans in NC), too, but is usually between one and three months.

According to payday loan info, currently twelve states prohibit payday loans. Four states permit payday loans but with lower rates and more oversight than normal. Twenty eight states allow payday loans with various regulations for rate caps. However, Wisconsin is one of six states which do not set a rate cap for its lenders.

Rate Caps Proposed

Currently Wisconsin has over 500 licensed payday lenders. Recently, the state assembly tried to place an interest rate cap of 36% on payday loans. The Assembly speaker Mike Douglas C. last fall said a proposal to cap the interest rates on payday interest loans “could kill the industry and cost jobs,” as reported in WKOW27 news in Janesville, WI, this week.

Dating a Lobbyist

However, Mr. Douglas C. has admitted dating a registered lobbyist for Cincinnati based Check’N Go. The lobbyist, Shanna Wycoff, works for a firm that sells pre-paid debit cards at Check’N Go locations throughout the state.

The executive director of the political watchdog group, Wisconsin Democracy Campaign, questioned whether this dating relationship suggested an appearance of a conflict of interest.

No Improprieties

Douglas states he keeps his personal life separate from his legislative work. “I would never do anything that would impact the work I do in the state assembly,” said Douglas C. He also said he didn’t accept any gifts from any payday loan lobbyist.

Douglas C. suggested that a group of lawmakers were working to put together compromise legislation that would place some controls over payday lenders. “It’s important to get this done, and that’s my number one goal,” he said.