An unstable financial situation sometimes forces a person to go to a pawnshop. This is an opportunity to pledge valuable things, having received some amount of money for them. But then these items can be redeemed.
Instructions
Step 1
Conditions in different pawnshops are different. When concluding a contract, employees are required to familiarize you with all the rules. The interest rate is usually indicated by months, and not per year, the payment period is set. The client is obliged to pay a fee every month if he cannot redeem the pledged item. Usually, a period of 30 days is given. When paying on the last day (renewal), you pay a certain amount. If you are late, the item can be picked up within 30 days, but in addition to the specified amount, interest will also be charged for each delayed day.
Step 2
You need to redeem items from a pawnshop within 2 months. Or renew the contract every month. If during this period you do not have time, then the pawnshop has the right to put the item up for sale. It happens that the term of the pledge is not 30 days, but seven. But in any case, you need to carefully read the contract, and try to meet the specified time.
Step 3
You can redeem the item any day. You will need to pay the amount of the deposit and interest. But it so happens that you can't pay everything right away. In this case, you can make a partial payment. In this case, a new contract will be drawn up each time. If you decide to make a small payment, it is best to do so at the time of renewal. In this case, you will pay interest for a month and redeem a part. If you do this in the middle of the specified period, then you will pay the amount for the entire month. And from that moment on, a new contract will begin. It turns out that you will overpay interest for a period that has not yet passed.
Step 4
Paying at a pawnshop is different from a loan. If you give money to the bank, you know that someday these payments will stop. This does not happen in a pawnshop. You pay to store gold or other items, and one day you have to bring the amount of the collateral. And the money you paid will simply disappear. Therefore, it is more profitable to take a loan and pay off their collateral, and then pay the amounts to the bank than to carry them to a pawnshop. Think about this option, it is more cost effective.
Step 5
To buy things from a pawnshop, start saving. Remember that this institution charges huge interest rates. The minimum rate is 6% per month, which is 72% per annum. The maximum can be up to 50% per month. At the same time, payments are not reduced if you do not pay at least part of the collateral. Try to pay off these obligations as quickly as possible so as not to lose your savings.
