Ways to Borrow Against Personal Assets to Cover Hardship

In today’s world, it seems more emergency expenses come up than ever. Surprisingly, lower income families and even people in the middle of the middle-class spectrum are not the only ones who can suddenly find themselves short on cash saved up for a hardship situation such as a natural disaster or a medical emergency. Forbes lists many sources to borrow money that people turn to during emergencies such as home equity loans, credit cards, borrowing out of 401k funds or retirement accounts, or even in some extreme cases turning to high interest payday loans or vehicle title loans. But there are still other ways to borrow against your assets that at least may allow you to do so without losing your vehicle or home.

Pawning Valuable Items at a Pawn Shop

Pawn shops can be a good place to get loans on valuable assets you own. Now keep in mind they’ll need to be fairly valuable items to take out large loan, and even then, many pawn shops will loan out a very small fraction of their value including as low as 10℅. But you still could get quite a decent loan amount if you own some vintage items that go for high value in most marketplaces. But you should try and avoid pawning family heirlooms or other items that could cause relationship issues within your family if you end up defaulting on a pawn loan. You should also do your research and try to find brokers who offer competitive loan rates.

Taking Out Jewelry Loans for Valuables

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One kind of dealer you may have come across if you’ve ever done a search for “pawn diamond ring” is a diamond loan broker. A diamond jewelry loan midwest, which is what these dealers offer is a better way to take out a loan against valuable jewelry because these dealers usually offer a more unbiased appraisal on the jewelry and will offer a higher loan amount for them. In fact, you may even get a loan-to-value (LTV) rate of up to 70℅ depending on what some jewelry lenders are willing to do. States often closely regulate these kinds of loans, sometimes even more closely than pawn shops so that fair terms are given to consumers. They also usually charge lower interest rates for diamond and jewelry loans than pawn shops, and usually have lower storage fees with even better security to protect your assets.

There is no right or wrong kind of loan to take out whether it’s secured or unsecured, though in most cases secured loans are easier to qualify for if you have bad credit. One thing to keep in mind is that most personal loans that are intended for short-term use have higher interest rates usually than loans designed to be paid off over a longer period. But even though long-term loans may be easier to pay off in some cases, they sometimes have fees for paying them off too quickly, so make sure whichever kind of loan you take out you read all the fine print in the terms.