AURORA, Colo. (KDVR) – A long, scratched coffin is likely to draw the attention of customers entering Pasternack’s pawn shop in Aurora, Colo. The store’s owner, Scott Pasternack, said he was traded in for a cash advance last year.
The spooky-looking box is just one of many personal items being pawned at a record pace. Pasternack said the rush began when the economy started taking a beating.
“Our loans have gone through the roof as the economy was much lower and people needed more money,” Pasternack said.
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One man, who asked not to be identified, told Nexstar’s KDVR that he pawned his belongings far more often.
“As times have gotten tougher and inflation rates have meant I come in and sell stuff once a month now,” Aurora’s man said.
People also buy many things in this store. Roxi Kessler was thrilled to be able to afford a used vacuum cleaner.
“You can’t afford anything because gas prices are so damn high they’re driving up the price of everything. Food, insurance, everything. The price is just going up. They can’t afford to buy anything new,” Kessler said.
She’s not alone — according to the National Pawnbrokers Association, at least 30 million unbanked or underbanked American households use pawnshops each year.
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Aurora pawnshop told KDVR that there are also more office customers.
This trend comes as no surprise to Christina Huber, an economics professor at the Metropolitan State University of Denver.
“There are many concerns. We have been told for more than a year that this inflation is temporary and is lasting longer than we thought. I think people are starting to get a little nervous,” said Huber.
How long it will take to sell a used coffin is not entirely clear. If you’re interested, it costs $499.
The National Pawnbrokers Association said the average amount people borrow is around $150, and 85% pay that money back with interest and usually get their goods back.
While pawn shops are an option for those unable to obtain credit, prospective customers should be aware of interest rates that may be too high to repay. As NerdWallet reports, pawn shop `R rates can be as high as 200% depending on a location and its practices.
For comparison, according to WalletHub, the average US credit card interest rate is 16.27% for existing accounts and 20.64% for new credit offers. When taking out a loan, always pay attention to the loan terms.
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