Pawn shop demand doubles as Brits sell off family heirlooms to make ends meet
A growing number of hard-pressed Brits are pawning their beloved family heirlooms as they try to make ends meet amid the cost of living crisis.
Pawn shop owners have seen demand double in just a year.
And among the thousands of people resorting to taking loans out against their treasured possessions is mother-of-three Debbie Williams.
The 61-year-old has pawned a £10,000 gold Cartier watch she was gifted by a close friend, plus an antique Smiths Hunter watch, after being hit with unexpected bills.
Her 81-year-old mum’s worsening dementia forced her to reach out to James’ Constantinou’s Prestige Pawnbrokers for help.
Shop prices 'are yet to peak and will remain high' as inflation hits new heights
Debbie Williams has pawned possessions to help pay for her mother's dementia care (Debbie Williams)
Williams pawned a £10,000 gold Cartier watch she was gifted by a close friend (Debbie Williams)She said: “The watches mean a lot to me. They’re hugely sentimental but I need money to pay for somewhere for my mum’s carer to live. We couldn’t afford to pay the bills for the work without this loan.
“I’m hoping more money will come through in time for me to get the watches back in seven months.”
After already taking a loan out on her Hertfordshire home, Ms Williams said she even considered pawning her favourite uncle’s watch in return for a £5,000 loan.
She added: “I was my dear uncle Reg’s favourite niece. He used to tickle me to make me laugh and the watch is very special to me, but I really need the money quickly.”
James Constantinou says the number of people coming back to collect their goods is falling (David Dyson)The interest rates for pawnbrokers vary but people can usually expect to pay between 3% and 10% per month. Despite charging more than most banks, people turn to them because they offer shorter-term solutions.
At Mr Constantinou’s Prestige Pawnbrokers chain, demand is up 200% – and the number of people coming back to collect their precious items is falling.
Around 18% are now losing their possessions to auction, he said, while 92% used to successfully pay back their loans.
Mr Constantinou added: “The people who get most upset are the ones selling important items because they need cash quickly.
“Those items are often worth less than £1,000 but hold a lot of sentimental value. We don’t want them to risk it but some people do.”
Dan Hatfield, who featured in ITV show Million Pound Pawn, told of how one desperate customer had pawned their great-great-great-grandmother’s diamond ring in exchange for a five-figure loan.
8 money changes coming in February including Universal Credit and passport fees
“We had a lady who had a diamond solitaire ring that’s been in the family for four generations. It’s six carats and worth £100,000,” he said.
Dan Hatfield from Million Pound PawnAnother pawned her late husband’s piano. Dan added: “People are using their sentimental assets to improve their lot during this crisis.
“Other things include artwork and a pair of Queen Victoria’s slippers that she wore as a child, which had been in one man’s family for a hundred years.”
Shadow Chancellor Rachel Reeves said: “This is the stark and troubling reality of the cost of living crisis and the economic insecurity far too many families live with.”
Read more similar news:
Comments:
comments powered by Disqus
