Issue date: 10/13/08 Section: Money/Health

Media Credit: Kim Acheson Shops such as C & C Pawn, 412 Washington St., carry a wide variety of items from bikes and TV's to snowboards and watches.

Gas is priced at more than $3 per gallon and food prices are increasing. Money has become more important than ever before and something every college student could use more of. But when in a bind, where can one turn?

The answer: a pawnshop.

Pawnshops offer individuals quick loans, but also allow people to sell unneeded items as well as a place to shop while on a budget.

Bruce Peterson, Manager at National Pawn Co., 1311 S. Hastings Way, said a pawn is a secured loan. An individual brings in an item and the pawnbroker provides that person with cash, while holding onto their item as collateral.

To be eligible for pawning, Peterson said an individual has to be at least 18 years or older and have the make, model and serial number of the item being pawned.

Reasons for pawning vary among customers. Senior Nick Wellenstein said he thought people pawned because people have to pay off debts right away and can't get a loan from a bank.

"Everyone has their bad times and everyone needs help," Peterson said. "That's kind of what we're here for."

Many individuals who use pawnshops use the extra cash for gas money and rent money.

Keith Dillinger, manager at C & C Pawnbrokers LLC, 412 Washington St., said people overextend themselves, adding that summer is a big time for pawning because of events going on like Country Fest and Rock Fest.

One of the biggest driving forces of the pawnshop industry are utilities.

Dillinger said between Nov. 15 and April 15 the company can't shut their customer's energy off, which leads many people to not pay their energy bills. So when April 15 rolls around those individuals are in need of money.

Getting money upfront when it's in need is one of the biggest benefits of pawnshops.

"You don't have to go through all of the red tape that you would for a bank if you needed a loan," Dillinger said.

For smaller loans, which banks don't provide, pawning can be a cheap and efficient route. With a $25 loan, the interest will be $5.

Continued...

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