What You Can Do If You Cannot Repay Your Pawn Shop Loan

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There are several great options you can turn to when you need cash fast, and these options work well even if you do not have excellent credit. One choice is a pawn shop loan. You can borrow money from a pawn shop by trading an item you own. You are not selling the item to the shop. Instead, you use it as collateral to borrow cash. After doing this, you must repay the loan by its due date if you want your collateral back. What happens, though, if you cannot repay the money when it is due? Here are the options you have.

Visit the Pawn Shop Before the Due Date

The first option you have for handling this issue is to visit the pawn shop to speak with them about this issue. When you go, you must make sure you do it before your due date. If you wait until after the due date, you might jeopardize your ability to repay the loan to get your collateral back. Secondly, when you go, you must bring the pawn shop slip with you. When you borrowed money from the pawn shop, they should have provided you with a slip. The slip states the date of the transaction, your name, the due date, the amount due, and the item you traded.

When you bring this slip to the shop, you can ask for an extension on the loan. They might agree to give you an extension, but you may have to pay a small fee for the service.

Leave the Collateral and Do Not Repay the Money

The only other option you have is to leave the collateral at the shop. If you choose this option, you lose the collateral you used for the loan. The pawn shop keeps your item, but the benefit is that you will no longer owe the money. Leaving your item there satisfies the loan. If you do not want to lose your item, make sure you use the first option instead of this one.

These are the two main options you can choose from if you owe money to a pawn shop. If you currently need some cash and need a fast way to get it, you can visit a local pawn shop to learn more. You can instantly receive some money on the spot for any valuable item you are willing to use as your collateral.

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