Pawn Shops

Places that convert your goods to cash

You can convert your possessions into cash at pawn shops by leaving one or more of your possessions with them as security.

Do you know exactly what fees you will need to pay and when you must repay the loan? Make sure you understand your obligations before borrowing. The effective interest rates are very high, like payday loans. Do you know how you will find the money to repay?

This can be a quick and expensive way to access cash, and the cost is high. Short term but high fees or interest is usually charged. You could end up losing your gear if you don’t pay on time. Look for a better alternative.

If you do not repay the amount by the required date you may be able to get an extension. But, each extension will cost you additional fees.

If you have arranged for a direct debit and you do not have money in the account, you may be charged "dishonour" fees by your bank.

If you keep extending and not repaying, you will lose your possessions. If the value of your possessions is less than you outstanding load, you will be left with a debt.

TIP: If you are considering using your possessions to borrow money, DON'T. Instead, seek help from a financial counsellor as you are almost certainly in financial trouble. There should be better options. Refer Financial Counselling section in "Where to go for Help".