How to avoid Scottish Pawnbrokers and selling off your prized possessions

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.