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College students look to pawnshops for quick money

Mar 06, 2012 Philip Burgess

In recent years, college tuition prices have been increasing while the U.S. economy has been on the decline. With many parents struggling in business, the burden of paying for college has largely fallen on the shoulders of young adults. Because few college students have established credit, many are looking toward alternative credit data, such as pawn shops, for borrowing, Fox Business reports. The source explained that the best loan returns are seen in high-end items, such as watches, precious metals and diamonds. These types of materials are always increasing in value, particularly gold. Also, electronics are popular items sold or pawned because shops will often take older, outdated models, Fox Business added. The Augusta Chronicle explained that the pawn business is ideal for people in any situation. The media outlet reported that the National Pawnbrokers Association said that the average income for those seeking pawn loans is $29,000 and 80 percent are employed. They also noted that the average loan is $80. Spokesperson for the National Pawnbrokers Association, Emmett Murphy, told Fox Business that loans from pawnshops are particularly attractive to students because "pawn loans do not place consumers in a debt cycle and defaulting on a pawn loan can never affect a consumer's credit."