Do you want to pawn to pay a quick debt?

Did you miscalculate your expenses and get out of control? Maybe you do not see the problem immediately, but when the credit card cut-off date arrives, or when you recount how you could take advantage of the money you squandered, you’ll want to have the effective solution to solve all your debts.

There are many options that can help you get through, all depends on the degree of indebtedness in which you find yourself. For example, if the amount is small, better adjust your consumption and you will achieve the amount in a short time. On the other hand, if you require the money immediately and it is a higher sum, you can choose to pawn some of your assets.

 

Pawn or not to get out of debt?

Pawn or not to get out of debt?

As you may have guessed, the famous January slope causes many people to look for alternatives to acquire the liquidity they need and make their payments, hence, going to the pawnshops becomes so popular. Even, according to information from the Mexican Association of Pillar Service Companies (AMESPRE), the sector registers an increase of 10% to 15% during the first quarter of the year.

However, pawning your assets is not always the best solution. The main idea of ‚Äč‚Äčthis type of financing is to get money quickly. Unfortunately, there are some variables that could affect the amount you receive, such as a fee for receipt, insurance against theft or a very low value of your pledge value.

 

Recommendations before opting for the commitment

Recommendations before opting for the commitment

A key recommendation to avoid worsening your economic situation is not to pay one debt with another. Therefore, take out a loan to liquidate another or similar measures, can generate a snowball effect. Taking this into account, when pawning a good it is essential to clearly verify the clauses of the contract, verify that the entity to which one goes is registered and contemplate that there is a possibility of losing the good or that the cost of recovery could be higher than what you imagined

That said, regardless of the decision you make, it is best to investigate before and consider the impact that will have in the medium term. Therefore, here I share some points:

Pros:

  • You can get money quickly, easily and without many requirements.
  • There is the option to recover the pledged goods.
  • The range of items that can be pawned is wide.
  • There are companies that have a contract through, offering a guarantee to their customers.

Cons :

  • Pawn can include additional costs that you may not have contemplated.
  • You could lose your article.
  • There are many clandestine pawnshops.
  • It can generate a debt.

 

What other options do you have to solve your debts?

debt settle

As we mentioned, depending on your economic circumstances you can count on alternatives to settle your commitments, among which we highlight:

  • Take your savings It allows you to have enough liquidity and avoid acquiring new debts, although that money could have had another objective.
  • Cut your expenses Evaluate your daily consumption and begin to reduce or completely eliminate some no matter how small they seem, such as the famous “ant expenses”.
  • Increase your income From getting a temporary job, to selling something or offering your knowledge in exchange for a pay, that money that goes into you will be very useful.
  • Consolidate your debt If you have several pending accounts, you can go to an institution to transfer them and unify them into one with better payment terms.
  • Go to a credit repair . If for some reason you already fell into default, you still have an option. Go to a credit repair company to help you liquidate with your own resources.

Finally, do you know what is the best way to avoid falling into financial problems? Prevent your purchases and maintain a budget that ensures you cover basic expenses and save.

So you know, the year starts well with the firm purpose of improving your finances and getting paid all your debts by 2019.

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