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More people turning to pawn shops for extra cash

By Roger Mari - bio | email

AIEA (KHNL) - With the price of precious metals soaring during this recession, a lot of people look to pawn shops for help in their struggle to tough it out.

It's not easy letting go of valued possesions like jewelry and heirlooms which hold sentimental value. One pawn shop is trying to make it as easy as possible for people in need of some extra cash.

At Paradise Pawn Shop the number of people coming in to get quick cash has gone up about 40% in the last year. With no other way to pay bills, or no money for the holidays, they bring in everything from guitars, to computer equipment and jewelry.

"A lot of people a lot of times they're coming in crying because their families turned them away and their friends have turned them away," said pawn shop owner Yvette Moore.

For some people, pawns shops are a way to get a quick loan without having to go through credit checks.

This person who doesn't want to be identified returns to pick up a bracelet she pawned earlier in the year. While happy to have it back, she's prepared to lose it if times get really tough.

"If it ever came down to it where I had to get rid of it to survive, then so be it."

Pawn shop owners also feel the economic crunch.

"Here we are doing 10-20 dollar loans that we only make 4.00 profit from, it's hard to keep a business going when you only make that kind of profit," said Moore.

Her customers are grateful for the loans. They also appreciate the words of encouragement she offers after parting with thier valued possesions.

"Don't think so much you're going to continuously going to be in a state of need," said Moore.

Handing something special over can be emotional but it's what many are doing lately to tough it out.

The pawn shop owner says about half of the jewelry items she takes in are for loans.

Customers get up to two months to buy them back or they will be sold.