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Up to Your Ears in Holiday Debt? GEM Can Help!

(Get Cash & Upgrade Your Look, Too!)

Rent is due. There are still the usual expenses like groceries and your cable bill. It’s a sobering reminder, we know. You overspent on holiday gifts, but the bills have started filling the mailbox once again. What are you going to do?

Holiday debt pawn may be the answer.

It happens every year. It’s practically impossible not to overspend. The kids write down the entire toy catalog on their list. The holiday parties never seem to end. Somehow, you found the time and money to take a family vacation before the end of the year. The plastic came in quite handy, but now the creditors must be paid.

The total is well over budget and not something you can pay off soon—but what about pawn for cash? Vehicle pawn is a possibility. Cars are valuable; you may scrape together a few grand to knock off some debt. There are some great perks to using a pawn shop:

  • You get cash right away.
  • No credit check is needed.
  • Pay it back (plus interest), and the item is returned.

If you are in this dilemma, many other people are in this same boat. Here are some stats to prove it. For information on how pawn shops work, keep on reading.

Holiday Debt Statistics

Every year, MagnifyMoney conducts a holiday debt survey. The company covers personal finance topics in detail online, with access to financial tools, calculators, and opportunities to compare financial products. Its annual survey is conducted after the holiday season is over.

This year, the survey revealed shoppers racked up $1,054 in Christmas debt for 2017, on average. People spent 5% more on holiday expenses than last year, so the burden is higher compared to Christmas debt in 2016. In fact, the average Christmas debt in 2016 was $1,003. The numbers continue to go up and are higher than the average holiday debt in 2016.

The company also estimated many people need 63 months to pay off their holiday debt. In fact, 30% expected it would take five months, while 19% planned to pay their balances in a month. Other facts the survey uncovered say that:

  • 64% said they didn’t plan on going into debt.
  • 26% took on $1,000 to $1,999 in debt over the holiday; 1% took on over $6,000.
  • Only 29% felt stressed about their debt, and 71% said they were not stressed.1

On top of it all, NerdWallet analysts found the average household has $15,654 in credit card debt. The nation’s total credit card debt is estimated at $905 billion.2

A debt study in 2017 showed that spending on many levels is outpacing income growth. Credit cards are the tool of choice. In fact, many are paying medical expenses this way. Others are withdrawing funds using overdraft lines of credit.

The NerdWallet study looked at contributing actions to going into debt. The largest category was people spending more than they can afford on unnecessary purchases. One can, therefore, see how people may spend more on holiday gifts, meals, parties, and vacations than they can afford.

When it comes to cards, many cardholders pay off their balances every month. Others carry their debt from month to month, sometimes paying just the minimum required by the credit card company. The accrued interest increases the debt even more.

Credit cards were used by 68% of MagnifyMoney survey responders, and 17% used store cards. Another 9% used another financial tool—a personal loan.3

average holiday debt in 2016

Pawn for Cash

You may think a bank is the best place to get a loan. However, there are many rules. Plus, they check your credit—a step many people would rather avoid.

There’s another option offered by pawn shops. Pawn is a collateral loan. While a bank secures a loan with credit, a pawn shop does so with a valuable item, such as jewelry, gold and silver, a watch, or a vehicle. If you’re in a serious holiday debt situation, you may look for “pawn shops near me” or “auto pawn near me” and think whether you can pawn a car title for cash or even “pawn my car and still drive it.”

The answer is no—but you can have the shop hold on to your vehicle. The loan terms can be adjusted depending on how long the shop keeps it. When you can pay the principal or the loan provided for the cost of the vehicle, plus interest and other fees, it may be possible to get the car back.

At GEM Pawnbrokers, you can receive a loan on a car, truck, or motorcycle. You get an instant cash loan, and your vehicle is stored in a climate-controlled storage facility. Providing top dollar for vehicles, we are also known for customer service and 70 years of experience. If you are searching for a “car pawn shop near me,” we have over 25 branches in the New York City area, so you can find a GEM Pawnbrokers shop in Manhattan, Brooklyn, the Bronx, Queens, Westchester, or on Long Island.

Vehicles aren’t the only things you can pawn. At GEM, you can also get loans on:

  • Gold/silver (Licensed by NYC Dept. of Consumer Affairs)
  • Diamonds (Top dollar for diamonds at least a half a carat in weight, a clarity of SI, and color of I)
  • Jewelry (Engagement rings, necklaces, earrings, bracelets, cuff links, brooches, anklets, etc.)
  • Watches (From ROLEX, Breitling, Cartier, and many other leading manufacturers)
  • Electronics (Computers, Xboxes, PlayStations, flat-screen TVs, and Apple products)

GEM also enables you to pawn coins for cash or credit and gift cards. We specialize in estate buying, as well, and we employ a team of experienced buyers and appraisers. Items that can be liquidated include fine jewelry, gemstones, silver, and paintings.

Some people also pawn tools, which are some of the most easily sold items. The best tools to pawn include power tools (gas and battery powered). Drills and circular saws from leading brands such as DeWalt, Bosch, Ridgid, Craftsman, and others are good for pawning.

How to Use Pawn to Your Advantage

Given how many people go into debt for Christmas, there must be a way to solve a tough situation. You may be eager to give your valuables to the nearest pawn shop. If you’re looking to pay down debt, there are a few things to think about to get the best price. These will help keep your head above water:

  • Sale or loan? If you sell something outright, you will most likely get more money. A pawn shop prefers a loan. They usually pay less for that, and the loan-seeker is more likely to come back in the future, providing more business.
  • Get familiar with the loan terms. Interest is paid on a monthly basis. Determine what the lender’s policy is on paying back the loan. How much interest is charged per month? What are the rules in your state?
  • Quality matters. Pawn shops are looking for high-quality items they are more likely to sell at a higher price. The more valuable the item, the more share of that value you’ll receive.
  • Emotional attachment. Go to a store and tell your life story, and the best you can expect is a strange look. Pawn shops may look at your personal and financial connection to the item. Emotional value and your ability to repay quickly are considered when a loan is offered.
  • Current jewelry prices aren’t the only factors in the deal you get. There’s some benefit to shopping around. Also, don’t be afraid to negotiate with the appraiser at the pawn shop.

Vehicle Pawns

Vehicle pawn is one of the fastest ways to get a lot of cash. Whether you can pawn a car title online or find pawn shops that take car titles—or not—the “pawn shop near me” is a great place to look. There are certain things pawn shops always buy, such as jewelry and gems.

Cars can often be quickly appraised, so you can receive a cash-out without waiting. GEM Pawnbrokers offers an easy way to start the process online. Put in your name, zip code, cell phone number, and email, plus a store/employee referral name. Then tell us about your vehicle.

We’ll need to know the:

  • Make
  • Model
  • Mileage
  • Condition
  • VIN #
  • Expected loan amount

You can upload photos of your vehicle online as well. Photograph it from the left, right, front, and back before sending in your loan request. This helps us determine the condition and look of the vehicle to decide on a fair price.

If you’re checking out “what can I pawn for 200 dollars,” check with us to see what kind of items can be pawned for the cash you need.

Moving Forward with Vehicle Pawn

Moving Forward with Vehicle Pawn

If you want to pawn your car to account for the Christmas debt statistics that apply to you, tread carefully. Always look for a reputable pawn shop. The best question may not always be “where can I pawn my car title?”

Think about requirements to qualify for a loan. Age and ID verification, free/clear vehicle ownership (no liens, titles almost paid off), vehicle condition, employment and income, and the loan period are factors to think about. The benefits include fast access to cash and an easy way to obtain a loan, rollovers that give you more time to pay the loan off, and the lending limit value.

There are a few dangers to look for. With a reputed, experienced pawn shop, you shouldn’t have to worry, but you need to pay careful attention to the terms of the loan and what will be the interest rate if you don’t pay it off in time. The rates can go very high and make it impossible to pay off the debt. To avoid such a cycle, be aware of what the lender’s expectations are in terms of balloon payments, late fees, and how the loan stacks up compared to the car’s value.

Visit GEM Pawnbrokers Today

Are you drowning in holiday debt? Auto pawn is found from coast to coast. You’ll find Abe’s Pawn Shop, Newhall, CA car owners can go to, but GEM Pawnbrokers serves the New York City area from many different locations. We can help you fix your situation. Our family owned and operated business has been running since 1947, and our spin-off, Gem Financial Services, has been going since 1975, so experience is on your side. See what we can offer to help you get out of debt!

For assistance by a trained appraisal specialist and hassle-free vehicle pawn, visit one our stores today, or call 718-596-5626 for help.

Sources

  1. http://www.magnifymoney.com/blog/news/2017-holiday-debt-survey/
  2. https://www.nerdwallet.com/blog/average-credit-card-debt-household/
  3. http://www.magnifymoney.com/blog/news/2017-holiday-debt-survey/

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