While many businesses managed to continue their core business operations online, other establishments needed to close down their doors due to the COVID-19 pandemic. Without a doubt, this health crisis has left many Filipinos jobless and scrambling on where they can earn money to sustain their daily necessities.
Statistics show that about 4.5 million Filipinos lost their jobs in 2020, with an unemployment rate of 10.4%—the highest it has been in the country in 15 years.
Since the COVID-19 crisis in the country is far from over, many people are looking for different ways to earn income. There are people working to save more money and have managed to pick up part-time jobs, set up a small online business, and do side hustles; meanwhile, some have depended on pawning to take care of their immediate financial needs.
Why Pawning is an Excellent Alternative for Cash Needs
Pawnshops are commonplace in the Philippines, which is why many Filipinos rely on them during trying times. To help you understand better how helpful pawnshops have been for people, here’s a quick rundown of the benefits of pawning items.
- It’s a safe and legitimate way to get quick cash
One of the most significant advantages of pawning is you can get a pawn loan instantly, unlike banks, where it can take a week or more to have your application processed and approved. With pawn loans, you can send an application online or in-store, submit the item you want to exchange as collateral, and receive the cash within a few hours.
- A safer option than alternative fast-cash options
- No credit check
- No impact on your credit score
Pawning is a safer option than personal loans and other instant cash alternatives because you are loaning in exchange for an item of collateral. It’s a legitimate and secure way to access fast cash. If you fail to repay the loan amount, nothing terrifyingly wrong will happen. The pawnshop will sell the item you applied as collateral to recover the costs.
Pawnshops don’t check your credit before approving your application. They’re a lot more lenient compared to banks and other loan companies. So, whether your credit rating is on the good or not, the pawnbroker wouldn’t mind. The collateral or valuable item you will exchange for cash is enough as security for the loan.
When you need to borrow money from a bank, you have to bring all the required documents and proof that you have good credit standing. This can be a problem for those who have a bad credit reputation or are just starting to build up their rating.
With a pawnbroker, you only need to bring the item you’ll exchange as collateral for cash. You’ll have to repay the loan with interest, as with other loan companies, and then the broker will hand your item back once fully paid.
Valuable Items You Can Pawn for Your Financial Needs
Pawning your valuable items is an excellent alternative to selling them or going to the bank for a loan. Filipinos are no stranger to these establishments. If you require financial assistance, consider pawning your valuable things to help you stay afloat. Check out the visual graph below for the items you can pawn during financial shortcomings.
The past year has been challenging for many. While there are people fortunate enough to keep their jobs or find a new one quickly, others are still struggling to make ends meet. Whether you need money to pay off rent, stock up on supplies, or for emergencies, you can rely on your local pawnshop to give you a hand no matter your current financial situation.