Sometimes we find ourselves stuck in sticky situations where instant cash is needed and pay day is just a few days too far away. Pawning your items of value can be a simple solution to getting you across the line.

Pawnbroking is a simple fix for your instant cash needs. It’s a centuries-old service that offers secured loans to people, using items of value as collateral. A more modern and easier way to refer to pawnbroking is flipping. You can flip your item of value for instant cash and flip it back when you’re flush.

The best thing about flipping an item is that you get it back. It’s a great alternative if you’re hesitant on selling your item. Once you pay back your loan in full, you get your item of value back too.

But before agreeing to a pawnbroking loan, it’s important to keep in mind that It can be expensive to borrow small amounts of money and borrowing may not solve your money problems. 

Know your interest rates

Like any loan, pawnbroking loans involve interest rates. Prior to agreement, carefully read your pawnbroking contract to identify the interest rate on your loan and consider whether this is something that you are capable of repaying.

Each pawnbroking business will have different interest rates. Don’t hesitate to call the store prior to coming in with your item of value.

Know your payment dates

Take note of when your loan needs to be paid back in full. You don’t want to risk losing your item of value or paying more than you need to on interest rates.

It’s important to keep in mind that it can be expensive to borrow small amounts of money and that borrowing, may not solve your money problems.  Check your options before you borrow:

• For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.
• Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
• If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
• The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009

Want to learn more about how to Flip It? These FAQs might help.