What can I do if I can’t repay my loan? If you’ve pawned an item intending to get it back later, you may find that you cannot afford to get your item back by the deadline. This is actually a common occurrence, and pawn shops do understand that you may have difficulty repaying the loan as soon as it’s due. They’ll offer you two options if you cannot afford to repay the loan on time.
To Keep the Item
If you are unable to repay the loan in full, but you want to keep your item, you will need to extend the due date. You can do this easily by visiting the pawn shop and paying the interest on your loan. The amount of interest will be what has accrued to that point, and you will still need to pay interest when your extension is over and you collect the item. The pawn shops understand you are going through a hard time and cannot afford to pick up your item right away. However, they do need to store your item for you, and that costs money. By paying the interest, you’re covering the fees and they can continue to store it for you.
To Forfeit the Item
If you cannot repay the loan or the interest, you will have to forfeit the item you pawned. You will not have to pay anything else and the pawn shop will collect the money they are owed by selling your item to someone else. For most people, this is something to avoid since they want to keep the item they have pawned. Once you have missed the deadline to collect your item, it will be forfeited, so most people prefer to pay the interest and extend the loan instead of losing their item.
What can I do if I can’t repay my loan? You have the option to extend the loan by posting the interest accrued or you can forget the item. Make sure you pay attention to your due dates so you know when to pay the interest if you want to be able to keep your possession. You can contact the pawn shop that has your item if you have any further questions.
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