Pawnbrokers used to fight debt levels

More and more people are turning to pawnbrokers to help solve their financial problems, when they could be getting affordable debt advice instead.

As people struggle with rising debt levels, a number of pawnbrokers have seen business rise in recent years, including the firm Borro, who have seen a rise of 45 per cent in the last six months alone.

Borro’s founder Paul Aitken claims that banks’ reluctance to issue loans in recent years has helped their cause, whilst changing attitudes have made the practice seem more acceptable.

However, debt solutons expert, Atlantic Financial Management believes using a pawnbroker can still prove to be a costly way of dealing with debt, which could actually end up with people struggling even more.

People either risk losing a treasured possession or have to pay an annual interest rate of up to 69 per cent if they want to buy back their possessions. Talking to an experienced debt advisor is, Atlantic says, a better starting point to tackle financial difficulties.

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