When you’re in a financially difficult situation, you may consider pawning or selling your items. After all, both methods can help you achieve the money you need. But how can you know if you should sell or pawn your belongings? To help answer this question, the experts from Pawn America—the leading pawn shop in Burnsville, MN—are happy to share their advice. Below, they outline both processes to help you decide which is best for your situation.

A Pawn Shop’s Guide to Selling & Pawning

Ownership

When you decide to sell an item, you forfeit your ownership of it in exchange for cash. Pawning, however, doesn’t mean you have to lose ownership. When you pawn an item, you give your item to the broker as collateral for cash. If you pay them back before the timeline expires, you can retrieve your item.

Time

In most cases, deciding to pawn an item results in an agreement between you and the broker. This agreement is usually limited to a specific amount of time as the pawn shop expects repayment. However, if you sell the item, you won’t be bound by any time constraints. It’s also important to remember that you will need to pay interest on the loan, which will accumulate over time. 

Value

If you decide to pawn an item, you’ll likely receive less cash than what it’s worth. Selling, however, typically means you’ll receive a higher amount of money. Keep in mind, though, that even if you receive less cash to pawn an item, you’ll be given that item back as soon as you repay the loan.

When residents of Burnsville, MN, need to sell or pawn an item, they turn to Pawn America. Serving the community for more than 30 years, this pawn shop is committed to helping you receive the best value for your items. Whether you want to pawn jewelry, diamonds, electronics, or antiques, these professionals can help. If you have any questions, feel free to reach out to them by calling (952) 435-7296. You can also view their services Online.

This post was writing by our friends at Vivial for our NearSay page!