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Pawnshops Offering Short Term Solutions With High Interest Rates

People who struggle financially seek solutions to help them keep afloat heading to pawnshops. While pawnshops can help you get by for a short period of time by raising cash quick, it should not be your first resort whenever you are having financial woes.

Pawnshops are not as benevolent and helpful as you think. They can work to your disadvantage in the long run. They can give you extra and quick cash, but this comes with a steep price and high interest. In a pawnshop, you only get around 25% to 60% of the resale value of your item. You are only given a short time to repay your loan with high interest and exorbitant rate. This means that you will pay 10% to 20% a month worth of interest. I hope you’re seeing the disadvantages. What’s the use of quick cash if a huge amount of what you pay goes to the high interest rates? You could even end up losing your property, the one you pawned, if you default on your loan. Read more about the disadvantages of pawnshop loans.

If you find yourself in this position and have high credit card debt that is strapping you down and making it hard to make it month to month, you might want to consider seeking the assistance of an experienced debt workout firm such as McCarthy Law.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.