@naam.wynn: How Pawn Shops Works! When you pawn an item, you are taking out a loan using your valuable as collateral. The pawnbroker will agree to give you a certain amount of cash and hold your item until you have paid back the loan amount plus interest and fees. Should you choose not to repay your pawn loan, the pawnbroker keeps your valued item and is able to sell it to recoup the loan amount. Follow me @naam.wynn to learn more things like this about money!
I worked in a small town pawn shop for a couple of years. When you take in a pawn, you do so thinking they won’t pick it up and you will have to sell it. So pawn at 50% of what you think you can sell it for. It’s that simple.
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