COUNCIL BLUFFS, Iowa (KMTV) — In this economy, pawnshops have become a destination for quick cash. With rising fuel prices and high inflation, a pawnshop owner says more people are selling items like jewelry, guns, electronics and tools to meet day-to-day expenses .
David Drake owns Metro Pawn & Loan in Council Bluffs. He estimates that there is a 25-50% increase in loans and people selling their items. But he sees a decline in actual purchases.
“The more people who don’t have money, that means people aren’t going to pay for their items and get them back, which means we’re going to have them here to sell, which means they don’t have money to spend buying the stuff that’s here,” Drake said.
In recent months, Drake has noticed that customers are more stressed about money.
“More and more people are literally telling me it’s for gas or for groceries. We’re not asking why someone is getting a loan, but some people are volunteering to explain why they need $50 or $100,” Drake said.
Shopper Mike Hess says more people should consider buying used items rather than new during the current economy.
“I think that’s part of the problem in this country is that everybody needs to have a brand new one and it’s plastic and it breaks and they throw it away. I think that’s a economy that makes sense,” Hess said.
As Americans feel more pressure to get a loan to get by between paychecks, Hess predicts this will change Americans’ spending habits.
“Just being more mindful of what you’re consuming, where you’re getting the necessities you’re buying. People are going to do that whether they like it or not, I think,” Hess said.
AAA reports that the national average for fuel is now $4.98.
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