How Will The Pawnbroker Handle Your Pawned Item When You Evade Your Pawn Loan Repayments?

If you’re wondering what will happen to your pawned item when you don’t revert to claim your item back as per the agreed timelines or forget then here is what you need to know:

YOU HAVE A CHOICE

Unlike other loans, you have different alternatives when a pawn loan is due. You can make the choice of paying or not paying the loan.

EXTENDING THE LOAN DURATION

On the loan’s expiry or due date, if you’re not in a position to repay the loan but you’re keen on reclaiming your valuable pawned item then you can extend the term of your loan by one month just by paying one month’s interest to the pawnbroker.

PAYING OFF YOUR LOAN

You can pay back your loan in full with interest on or before the due date and get back the possession of your valuable item.

AVOID PAYING THE LOAN ON THE DUE DATE

If you don’t turn up and pay the loan on the due date or extend the loan duration or forget to pay or default it willingly; in all these cases, the pawnshop will place your pawned item for sale, to recover the loan amount, interest and also book a small profit to survive in this business.

FINAL WORDS

Unlike other loans, non-payment (default) of a pawn loan won’t affect your credit standing whatsoever. Apart from availing a pawn loan from pawnbrokers, you can also sell second hand goods of value unto them and obtain instant cash. What a wonderful way to clear the clutter from your home and earn some quick bucks too!

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