Loan payments in minutes with no proof of income or application paperwork required. The fast, convenient loan from the pawn shop is also the first choice for many bremen people when it comes to bridging financial bottlenecks.
The industry meets the demand of corresponding service: "there are more and more pawnshops. The central association of the german pawn credit industry (zdp) alone, a voluntary association, has 220 members, ten percent more than five years ago," reports wolfgang schedl, the organization's president.
The family of aram aktan has been on the market since 2005 and is one of the very ones that are constantly expanding. "Two pure-play pawn shops and a wholesale business with several branches in bremen and the surrounding area are part of our company," aktan says.
Just recently, the company's owners opened a pawn shop on soe street. Precious metals, dental gold, gold bars and diamonds are the common things bought and sold there. Currently, the price of gold is at a level that makes both attractive, he said. "Not too high and not too low."
Plugging holes in the financial budget
Business stands or falls with the gold price. This is also confirmed by andreas jordan, whose family has been in the business since 1929. In addition to two stores in bremen and one in kiel, she recently opened one in delmenhorst.
At friedrich-ebert-strasse and breitenweg, around 75 percent of regular customers pawn their valuables. "More than 90 percent of them also solve these again. In most cases, only short-term holes in the financial budget need to be plugged," reports andreas jordan.
One percent interest plus fees per month
According to him, the clientele in jordan's pawnshops get up to 90 percent of the value of the material. As a rule, a contract runs for three months, after which there is a one-month grace period. "If the client has not acquired his belongings back by then, at the beginning of the fifth month there is a risk that the goods will be auctioned off," the company boss explains.
"If there is a surplus generated at the auction compared to the loan, this is due to the customer. Otherwise, it pays one percent interest plus fees monthly. The latter depends on the amount of the loan," he adds.
"Attractive for both sides"
Jordan is a member of the central association of the german pawn loan industry. And that grows. Those who belong to it undertake to comply with the consumer protection ordinance issued by the federal government in 1961. On it the federation pays attention.
The law guarantees customers stable interest rates regardless of the ups and downs in the money market, as well as clear rules of the game when issuing pawn loans. "And that makes the deal attractive for both sides," schedl said.
Consumer advice center: "no complaints at all
In addition, there is the social aspect. The trade is something for people of all classes – the only thing that is needed is a pledge object. The best thing about it is that, in contrast to a bank loan, you are not liable with your house and farm. "Users cannot fall into the classic debt trap," emphasizes the expert.
There is also nothing against this form of trade on the part of the bremen consumer center. "We have no complaints in this regard. From this point of view, it seems that there are obviously no serious problems," says gerrit cegielka, a lawyer at the consumer center.
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As you already indicate, pawn shops are becoming more and more popular. I think that this option to get money is considered by many because of its simplicity. Like you, I think this can be very attractive for both sides. Thank you for your contribution.
To get money quickly in case of financial shortages, pawnbroking is certainly an option. Here, as you say, it depends on the term and generally the terms of the contract. Thank you for explaining the pawnshop and the framework of the contract!
Such a pawn shop is really a great thing. Especially when you need fast money. That with the financial bottlenecks can go really very fast.
That you do not fall into a classic debt trap is true. My neighbor was in heavy debt for a while and was forced to mortgage his motor vehicle. He was able to reduce his debt this way and is now on the verge of buying his car back.
So a pawn shop can really be a great relief when it comes to minor bottlenecks in financial terms. That is why the pawnshop is always very good. Because sometimes you just need fast money.
For our purposes the pawnshop seems to be made as you write that the regular contract period is three months. Since we would like to pawn our car quite uncomplicatedly, until we emigrate and sell it, we still have exactly the quarter to buy it back to us. All the better to hear that any potential excess of a deposit would go back to us – maybe we could just sell the car to the pawn shop in the end!
I also like the fact that there is no risk of falling into a debt trap. You only lose what you give away. I borrowed against my car many times in my youth and did well with it.
That's right. You can really have a lot of financial bottlenecks if you want to have money immediately and without problems. A friend of mine has tried everything to get a loan from a bank, but the rules are often too strict. That's why she chose a car car pawnshop. You have many advantages.