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Cash Loans Or A Pawnbroker - Which Should You Choose?

The number of pawnbroking shops and services that are opening up in high streets all over the country are real signs of the times we live in. These shops give you a quick and easy way of using goods and assets that you own to raise extra cash when you need it. Cash advance loans also offer you a quick and simple way of raising smaller amounts of cash and you can find outlets here in the high street or you can make a quick and easy application online. So, which option should you use?

The advantages and disadvantages of using a pawnbroking service

Using something of value that you already own can be a quick route to getting some hard cash in your pocket. Here, you take something of value to the pawnbroker such as a piece of jewellery, for example. The pawnbroking service then gives you a loan against your item, usually on the spot. You can then redeem your item later by paying back the loan plus the interest that has been charged on it.

But, this kind of loan does use your asset as security. So, if you run into problems paying back your loan at a later date then you could lose something that has great sentimental value to you. You may be given longer to pay back your loan than you would with a cash loan and you may be able to borrow higher sums (depending on the value of your asset) but you might find that your interest adds up quite quickly every month you don’t pay back what you borrowed.

The advantages and disadvantages of using cash loans

You don’t need to use any security to borrow money here as cash advances are based on the income you earn. This means that you don’t run the risk of losing something of value to you. These kinds of loans, unlike pawnbroking ones, also work on a flat fee basis. So, as long as you repay your borrowings when your next payday comes around then you’ll have a simple one off fee to pay to cover your interest.

These kinds of loans are very simple to use and to manage. You can arrange finance in less than a day and have the security of knowing that your aim is to be debt free again in less than a month. But, you may find that they don’t suit you as well if you want to borrow thousands of pounds or want to wait a while before you pay back what you borrow.

If you are looking for a small cash advance that will be paid back quickly so that you can clear your debts quickly, then a cash advance may be your best bet here. With no need for security and no risk of losing valuable items as guarantees then this kind of loan could be your simplest and least risky choice when you need a little extra cash to get you through the month until you next get paid.