How to Get Short Term Collateral Loans

Unfortunately there are times when we need money in a hurry. When your bank account is dry and your family and friends can't loan you the cash, your best bet is a short term collateral loan. Pawn shops are the most likely purveyor of this type of loan. Find something of value around your house to serve as collateral and take it to a pawnbroker. Before you know it, you will leave with cash in hand.

Difficulty: Moderately Easy

Instructions

1. Determine how much money you need for a short term collateral loan. Do the math to know exactly how much you will need in order to get by.

2. Locate household items that have value. Find enough items to cover the loan amount. When looking for items of value do not think about sentimental value or perceived value. Jewelry, musical instruments, power tools, appliances and guns are always popular items to bring to a pawnbroker because they have a solid value.

3. Seek out a licensed pawnbroker in your area. A pawnbroker will take your item and give you a loan based the item's value. The pawnbroker then holds the item for a period of time, usually four months, while you repay the loan. If you do not repay the loan, the item becomes the property of the pawn shop and it can resell it.

4. Discuss the item's value with the pawnbroker. The loan value is purely speculative on the part of the broker, which means it is negotiable. Be realistic with your expectations, but if you are not getting what you want, negotiate. If you are dissatisfied, go to another broker.

5. Pay the loan payments or return the full loaned amount, plus interest in the designated time to get your collateral item back. Many brokers will allow you to simply pay off the interest in order to keep them from taking possession.