So, you’ve pawned your gold jewellery but the payment date is now due and you realise, you couldn’t possibly pay the loan back. This is the worst case scenario for a desperate person and it puts more pressure on a person. When you take out a pawn loan, your valuables are held by the pawnbroker as collateral and only returned to you when you pay your loan back. Sometimes, it’s hard to do this and you have to face the possibility of losing your valuables
So, before you take out a loan from a pawn shop Melbourne, you should have an idea of what would happen if you fail to repay the loan as agreed find out if there is anything you can do to still save your item even if you don’t have enough cash to pay the loan off.
There are three solutions that pawn shops usually offer to their customers:
- Get an extension
Some pawn shops allow you to extend the loan period every 30 days. This way your items will not be sold off and your account with the pawnshop will remain open. However, this is not free. In a lot of cases Brisbane pawnbrokers will give you the option to pay the interest and renew the loan. It gets pretty expensive to do this as interest can accrue rather quickly but at least, you don’t lose your item. It is an expensive options that you should try to avoid at all costs. If you can’t, you can minimize the impact by paying off the interest and part of the loan amount and don’t extend more than once.
- Late payments
What if you can pay off the loan but you will have the money to do so a day or two after the loan is due. The pawnbroker will have to put it up for sale. This might not affect your credit score or history but it will affect your reputation with the pawn shop Melbourne. This means that the next time you bring something in for a pawn loan, they may not give you a good deal or deny you a cash loan because of you history of non-payment.
- Getting your items back after it has been put on the sales floor
The pawnbroker is under no obligation to let you know that they are putting your item up for sale. They may give you a curtesy call but that’s it. If you want your gold jewellery, you might have to buy it. One thig you should remember is that pawnshops don’t like confiscating things because non-payment of loans bring with it another lay of responsibility on their part. What if the item does not sell? Ideally, a pawnbroker would rather have you redeem your item. It’s better to pay the loan back and take out another loan using the same item until your financial situation improves. Pawnshops thrive on repeat business, even if it’s the same item being pawned more than once.
So, now you know what you can expect if you cannot pay your loan back and retrieve your items. Despite all that we have said above, it is always a good idea to talk to the pawnbroker if you are experiencing problems with repayments. Do this before the loan period lapses to give yourself time to come up with an alternative solution and to prepare the pawnbroker for the eventuality that you may default even if you have all the intentions to pay your loan back.
