A question that is often asked by those considering the services of a pawnbroker is: How long do you have to redeem an item?
We will answer this and other pawnbroking related questions as this piece progresses, but first let’s understand:
Why consider a pawnbroker in the first place?
Those looking to get their hands on some quick cash will find that pawnbrokers offer a fast, easy, reliable and secure way to achieve their goal.
While it is possible to sell items to a pawnbroker, most people opt for the far more popular method of putting items up as collateral for a loan.
In essence, this means that you give item(s) to the pawnbroker in return for securing an agreed loan amount. This transaction is known as a ‘Pledge’.
As long as you pay back the loan amount along with the agreed and clearly stated interest charge within the agreed time you will receive your goods back.
What amount can you borrow?
The answer to this question is really dependent upon the items you are pledging. It goes without saying that the greater the value is the greater the loan will be, but it is important to understand that you will not get the full value of any item when pawning, you will only get a percentage of its value.
This is because the pawnbroker is taking the risk that you will replay the loan and associated interest, they have premises and a business to run, and like all successful businesses, they need to make an operating profit.
Do remember that the initial amount offered by a pawnbroker may well be negotiable, so if you feel the first offer is too low, do try to negotiate.
How long do you have to redeem an item?
Once an agreement has been reached both you and the pawnbroker will sign an agreement form which is known as a ‘ticket’. From the date of signature, the standard repayment period is 6 months.
Two things to bear in mind here:
- It is possible to get your item(s) back at any time by paying off the loan amount plus interest.
- The loan period can be extended if you pay the interest due and then re-pledge the goods.
Non-payment of loan:
Those who do not repay the loan or interest only to extend the credit agreement will forfeit their claim on the goods in question. The pawnbroker is then at liberty to sell your goods in order to use the money received to pay off your debt.
It must be said that most people honour the agreement with the pawnbroker in question, but it is important for you to discuss and have clearly explained your and the pawnbroker’s obligations during any pledge agreement negotiations.
A convenient way to get your hands on quick cash:
Availing of the services provided by a professional pawnbroker is an excellent way to get your hand on much needed, instant cash.
We have addressed the question: How long do you have to redeem an item? As can be seen from the answer, although the standard time is 6 months, there is flexibility in this period as long as you settle at least the interest payment.