Payday Loans And Pawnshops: Comparing Two Popular Ways Of Getting Cash Quickly
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!
Latest News
 The Money Times | Added Loans to Iceland Will Help Pay Depositors Wall Street Journal - While loans from the International Monetary Fund and the Nordic countries are aimed at supporting Iceland's tottering economy, the British, Dutch and German ... IMF, Nordics pledge $4.6 billion loans to Iceland Iceland welcomes loans from IMF, Nordics and Poland (Roundup) IMF, Nordic Neighbors Agree Billion-Euro Loans for Iceland |
GETTING PERSONAL: Family Loans Serve Multiple Purposes CNNMoney.com - NEW YORK -(Dow Jones)- If you want to help out a family member without giving a handout, consider a family loan. Loans between relatives can help the ... |
Fort Worth's Trinity Bank Profits up 31% MarketWatch - In a day when many banks are fighting for their existence because of bad loan decisions, we are fortunate that we have yet to have one loan loss or one ... RMG Capital Corporation Reports Third Quarter Earnings |
LendingTree Loans Selects IBM for Loan Fulfillment Services MarketWatch - LendingTree Loans(SM), the company's consumer direct online mortgage lender, to provide comprehensive, private label mortgage loan fulfillment services. ... LendingTree inks deal with IBM LendingTree Loans Selects IBM for Loan Fulfillment Services IBM to provide loan fulfillment services to Tree.com's LendingTree ... |
 Wall Street Journal Blogs | December 22 Is Deadline to Apply for SBA Economic Injury Disaster ... MarketWatch - The deadline to file applications for Economic Injury Disaster Loans (EIDLs) is December 22, 2008. Small businesses and small agricultural cooperatives that ... Loans tougher to get but still available Loans available for September storm damage Low-interest loans available for Sept.-Oct storms |
 International Business Times | Fitch Downgrades 1 Class of JP Morgan Chase, Series 2001-A ... MarketWatch - In addition to the largest loan, Fitch has identified three other Loans of Concern, which includes the specially serviced asset. ... Fitch Affirms Bear Stearns 2000-WF1: Assigns Outlooks Fitch Downgrades 1 Class of Banc of America Commercial Mortgage ... |
 guardian.co.uk | Congress Delays Action on Auto Industry Loans Voice of America - The chiefs of General Motors, Ford and Chrysler asked for twenty-five billion dollars in new loans. Congress already approved twenty-five billion in ... Video: Automakers Testify As Hopes for Aid Falter Loans to automakers make the only good deal for US Ford says could wait on US loans until 2009 |
SBA loans drop, rationing under way Bizjournals.com, NC - US Small Business Administration-guaranteed loans for the 24 counties south of Orlando were down almost $150 million in fiscal year 2008, which ended Sept. ... Allegan, Barry country residents hit by flood eligible for loans Small business loans dwindle SBA steps aimed to fuel small-business lending |
 Voice of America | UAW may give up jobs bank to revive auto loans Detroit Free Press, United States - 2 for how the loans might be used to transform them into viable companies, promising to bring Congress back into session Dec. 8 if the plans measure up -- a ... Congress: Auto execs must show 'significant sacrifices' Big Three's plea for aid fizzles in Congress Automakers need to make case for government aid |
 China Daily | Who's Getting $2 Trillion In Fed Loans? CBS News, NY - The Federal Reserve Board has been quietly providing $2 trillion in "emergency" loans to banks, and the pace has been quickening, Early Show National ... Video: Consumer Prices Drop Record 1 Percent in October Can the Fed fight deflation? How? Depressing Times |
Resources
-
Bad Credit Loans, Bad Credit Credit Cards - YoureApproved.org!
Personal Loans, credit cards from bad credit lenders including bad credit Loans - high risk unsecured bad credit cards - debt consolidation Loans - payday Loans!
-
Bad Credit Loans - Personal Loans - Credit Cards - Home Loans - Auto Loans - Credit Repair
Bad credit Loans and credit cards - personal Loans - high risk Loans - credit repair - free government grants - government auctions - police auctions - debt consolidation - filing bankruptcy
-
#9654; The Complete Online Guide to Free Government Grants, Business Grants and Government Loans
Government Grants - US government grants provides free government grants, business grants, Government grants.
-
Government Grants, Loans, Federal grants and Grant Money
Government Grants find out how to qualify for Free Business Grants, Government Loans and Free Government Money
-
US Government Grants - Online Directory for Info and Links.
US Government Grants - information on how to obtain free government grants.
-
Government Grants - Free Government Grants - Free Government Cash Grants - Cash Free Government Gran
Free Government Grants and Free Government Money from Government Grants. Guaranteed Government Grants.
-
After Bankruptcy Credit Solutions
Discover how to qualify for credit and Loans after bankruptcy in as little as 30 days!
-
Business Credit Secrets Revealed! - Get Business Credit Cards and Loans
Business Credit Secrets Revealed!
-
The Real Estate IRA: Use Your "Self-Directed" IRA, Roth or 401(k) + Loans to Buy Investment Property
Invest in Real Estate using an IRA, Roth IRA, or Individual 401(k) Plan. Buy Investment Real Estate like houses, condos, apartment buildings, foreclosures and land. Use Loans to leverage your investment. New eBook reveals the real estate information and l
-
bad credit home loan, refinance mortgage loan, cash loan, cash advance loan, california home loan, p
Online bad credit home loan, refinance mortgage loan, cash loan, cash advance loan, personal loan, debt consolidation loan, payday loan, bad credit loan, home improvement loan, second mortgage loan, online loan, unsecured personal loan Search.