How to avoid Scottish Pawnbrokers and selling off your prized possessions
September 21, 2017
Using the services of a pawnbroker may be tempting if you need cash urgently and cannot obtain credit, don’t have a bank account, or are facing serious debt. But it may not be the best way to deal with the situation.
As experienced and reliable insolvency practitioners, we can help you avoid using pawnbrokers and cash generator firms, retain your prized possessions, and advise on other methods of dealing with debt or securing the cash you need.
Our licensed insolvency practitioners have extensive knowledge of debt relief in Scotland, and have been helping Scottish residents to escape debt since 1989. But before we examine these alternatives, which are the main pawnbrokers and cash generator firms in Scotland, and how do pawnbrokers work?
How do pawn shops work?
Pawn shops offer short-term loans using gold, silver, platinum and diamond jewellery and watches as collateral. Some also accept musical instruments, antiques, electronic items and other goods of value.
Your item is valued at the pawnbrokers, and after you agree a loan value, you take receipt of the cash straight away. No guarantor is needed, and there are no credit-checks. Your item is insured by the pawnbroker, and stored securely inside their premises.
How long you have to pay back a pawn shop loan varies, with some firms offering terms of up to seven months. Because interest rates are high and interest on the loan accrues daily, it’s a good idea to pay back the money as soon as possible. Pawnbroker interest rates vary, and a monthly rate can range between 3% and 10% depending on the value of the loan.
The biggest pawnbrokers and cash converters in Scotland include Robert Biggar, Duncanson and Edwards, The Money Shop, Tron Pawn, H&T Pawnbrokers, and Ramsdens. These firms are based throughout Scotland, with Glasgow and Edinburgh being major centres.
What are the alternatives to pawning your possessions?
There are a range of viable alternatives to improve your cash flow, or deal with debt. We can review your finances, negotiate informally with creditors on your behalf, and advise on suitable options to improve your financial position for the long-term.
Our involvement helps to reassure creditors that you’re taking positive steps to address your situation, and often results in a favourable outcome that reduces the strain on your day-to-day finances.
Debt Arrangement Scheme (DAS)
One such option is the Debt Arrangement Scheme, which is backed by the Scottish government. This arrangement allows you to repay your debts in full via a Debt Payment Plan, but at an affordable rate based on your residual income. Interest and charges on the debt are frozen, and your creditors are prevented from taking any legal action against you to recover their money.
Other debt relief solutions include Trust Deeds and sequestration – the Scottish term for bankruptcy. These can offer escape from serious debt, with sequestration being a last resort for many, but one which represents a new financial start once the bankruptcy term has ended.
Scotland Debt Solutions can help you tackle your debt situation without having to pawn your valuables. Our experts will assess your financial position and let you know the best options available, whether it’s negotiating with creditors unofficially on your behalf, or choosing a formal debt relief procedure. With four offices around Scotland, we can arrange a free same-day meeting in complete confidence at a location near you.
The start of a new year is the perfect time to take stock of your finances and put plans in place for a financially savvy year ahead. While you may feel your problems are insurmountable, there are always things you can do to help, most of them surprisingly easy. Here are 7 ways you can […]
If you have credit card debt which is attracting a high level of interest, moving this balance onto a lower interest card could save you a considerable amount of money. This process is known as a ‘balance transfer’, and if done correctly, this process could save you money and also reduce the time it takes […]
Many thousands of young Brits are being actively encouraged towards taking on debt and spending borrowed money even before they reach their 18th birthdays. That’s according to the price comparison website comparethemarket.com, whose research suggests that roughly one in four 16 and 17 year olds in the UK have been offered credit cards or asked […]
If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland). This also prevents your situation from worsening. There are two […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
Scotland has a number of formal debt solutions that can help you deal with a difficult financial situation. It’s advisable to take action as soon as possible, however, to prevent your levels of debt escalating when interest and other charges are added. Obtaining professional advice is key in this respect. An approved money advisor or […]