I remember years ago growing up when you needed some money fast and didn't have any other alternatives such as credit cards, friends or a friendly bank you pawned something you had that was valuable. This was an easy way to get some money and technically you didn't give away what you owned but you did have to pay a fee to get it back.
Every day I read headlines concerning payday loans that read-
? City imposes moratorium on payday loan business,
? Payday loan limits being considered and imposed,
? Lawmakers seeking to impose payday loan interest cap rates.
? Payday loan interest is high but it's also legal
? Supreme court to hear payday lending case
I though I would compare pawnshops to payday loans and see if it is really any different than the age old practice we all grew up with.
Pawnshops and pawn broking have been around for thousands of years the idea of bartering for goods and cash is nothing new. Basically when you pawn something you bring in something you own and give it to the pawnbroker as collateral for a loan. The pawnbroker then loans you the money against that collateral. This is really a subjective part but it's usually pennies on the dollar. If you want your item back you repay the loan plus the interest and then get your item back. If you don't repay the loan the pawnbroker keeps your item and sells it in their store usually for more of a profit.
So let's take an example of this process and see how much we could expect to pay. Let's take a common item like a piece of jewelry. We spent $200 for the piece of jewelry new a few years ago and want to pawn it to get some fast cash. The pawn shop is willing to give me $20 dollars for the item. In return for my item I get $20 and a ticket for the item indicating:
? The item that I pawned
? The amount of money the shop loaned to me for that item
? The amount of money due in 30 days to get my item back if I choose
My ticket would tell me that for my piece of jewelry I received $20 and I need to pay $24.40 (that's 2 percent interest plus 20 percent in fees). Within 30 days I can do one of the following:
? I can return to the shop pay the fee and get my jewelry back
? I can pay the monthly fee ($4.40) to extend my loan for another 30 days.
? I can do nothing and give the pawnshop my property
$4.40 fees due in 30 days for a $20 dollar loan works out to about 264 percent per year. I won't even go into the amount of info you have to give a pawnshop to protect the merchant from handling possible stolen goods. Let's just say it's not anonymous and leave it at that
Is any of this sounding familiar?
Payday loans work in the same manner. If you need fast cash and have a job and are over 18 years old you basically can get a payday loan. There are scores of payday loan stores in most major metropolitan cities and you can also get a loan over the internet without ever leaving your home
Most services are all automated and give you an answer within 2 minutes. Typically payday loans firms offer the following
? Up to $1500 deposited into your account within 24 hours ? Flexible payment options
? $30 per $100 finance charge
? 100% faxless
? Bad Credit ok
While typically these loans are high interest think about the alternative, it is a set rate with no haggling over the value of merchandise you may or may not what to give up. By examining the facts and reading comparisons of the different loan types available you can quickly and easy qualify for a quick and easy loan. Both payday loans and pawnshops have there place within society and serve a need with a few facts and help both can be utilized at different times to help during a time of need
To view a list of recommended payday loan companies, visit the page http://www.officialpaydayloan.com. Officialpaydayloan.com is an informational payday loan website with informative articles, loan comparisons and all the latest information on payday loans
http://www.Officialpaydayloan.com is the best resource for finding information and comparisons of the latest payday loan programs and offerings. Visit our site often for the latest information and reviews of payday loan offerings Visit http://www.officialpayloan.com today!
If you've got a really unmanageable amount of credit card... Read More
You might find yourself wondering about the origins of online... Read More
I remember years ago growing up when you needed some... Read More
Locating the cheap personal loans that you're looking for isn't... Read More
Because of the Internet, quick payday loans are faster than... Read More
Worried about how to apply for a business loan? Although... Read More
Somebody once said, 'Business is not financial science; it's about... Read More
Most Internet users are now extremely comfortable using the Internet... Read More
Here are some useful tips on Personal loans. You can... Read More
Looking for a cheap personal loan can sometimes be a... Read More
Student loans seem to be the only feasible way out... Read More
Albert Einstein called compound interest "the greatest invention of all... Read More
Scene one: you are sitting on your office desk surrounded... Read More
A bad credit history is like having contracted an infectious... Read More
Ever wondered what is credit? Credit is more than just... Read More
Predatory lenders promise loans that are "too good to be... Read More
A personal secured loan is the generic term for a... Read More
If you're in the process of trying to find a... Read More
It can seem impossible at times to get bad credit... Read More
If you need a fast way to get an emergency... Read More
A business loan is designed for a wide range of... Read More
A secured personal loan is the generic term for a... Read More
The usual modus operandi in most automobile purchases is as... Read More
One of the most enduring myths of loan industry is... Read More
What are the avenues available to businesses with weak credit... Read More
A car loan is a type of credit offered by... Read More
In this second installment, we will further examine what kinds... Read More
There are many types of loans available to consumers. There... Read More
Owning a home is the most important dream of any... Read More
Listed below are some of the many reasons why you... Read More
Listed below are some of the reasons for choosing a... Read More
Car loans are a tempting way to purchase a new... Read More
Emergency - the word is written everywhere in red and... Read More
Factoring has been practiced for centuries. The Romans sold promissory... Read More
VA loans are basically mortgages or home loans geared towards... Read More
Finding an auto loan online is easy regardless of you... Read More
When trying to discover the origins of lending you might... Read More
When searching for a payday loan company online to get... Read More
When trying to locate bad credit loans, many people find... Read More
A Payment Protection Plan is an insurance cover you would... Read More
Why do kids get all the breaks? Winter-weary adults, fed... Read More
Need extra cash till payday? It's easy to apply and... Read More
An Auto loan is basically another name for a car... Read More
With the plethora of big-business entities jockeying for the money... Read More
Your car loan is now less than an hour away... Read More
You can use a personal loan for many different things... Read More
Are you a pensioner applying for a loan? Here are... Read More
For those individuals who are looking for fast and inexpensive... Read More
A number of states from coast to coast are attempting... Read More
Listed below are some of the reasons for choosing a... Read More
Payday loans offer a fast and easy solution to financial... Read More
One of the most enduring myths of loan industry is... Read More
People sometimes wonder about common types of loans, especially with... Read More
Here is a useful guide to bridging loans. This is... Read More
Military members the price for serving your country and defending... Read More
A Brief Look At Loans "Innovative financial packaging" is how... Read More
Car loans are easier to get by using an online... Read More
If you find yourself looking for a loan, you'll likely... Read More
The revolution that has affected everyone's financing technique is online... Read More
Buying A New Car: A new car is second only... Read More
Are you wondering why choose a personal loan? One of... Read More
Payday loans have many names -- cash advances, signature loans... Read More
A Personal secured loan can offer many benefits, some of... Read More
If you're in a crunch for money, either because of... Read More
Military loans are made available to active servicemen and retirees... Read More
If you thought your home is worth nothing except for... Read More
Loan |