Need Some Cash? Is a Pawnshop the Answer for You?

I came across an interesting article on pawnshops today. CreditCards.com examined whether or not pawnshops are a good way for people to make some money in this economy.

Pawnshops grant short-term loans using your personal property as collateral with no risk or effect on your credit, even if you default on the loan, the article reports. Once you repay the loan and a loan fee, your property is returned to you.

The article offers some interesting data from the National Pawnbrokers Association: The average pawn customer is 36 years old, has a household income of $29,000 and comes from a variety of ethnic backgrounds. The NPA also estimates that 80 percent of pawn customers are employed, 82 percent have a high school diploma or a GED, and 33 percent are homeowners.

Critics, however, complain that pawnbrokers target people who have had bad financial breaks and offer them very little for their items.

Take a look at the story and let us know what you think.