Have you hit hard times financially? There are many sources of short-term cash to consider, but they can be out of reach when you don't have a lot of credit or income to show.
One thing not to overlook is the possibility of getting money through jewelry loans. This article walks you through what that would look like.
You can get jewelry loans through a jewelry specialist or pawn shop, for starters. You present a piece of high-value jewelry to secure a loan. The lender holds the jewelry as you make repayments. When you have finished repaying the loan, you get the piece of jewelry back. There will also be clauses for what happens if you fail to make repayments; at some point, the ownership of the piece of jewelry likely transfers to the lender after so many missed repayments.
You'll Pay Interest Just Like Any Other Loan
Jewelry loans function just like any other loan. You apply and list your assets. A contract is drawn up that spells out the terms. You make repayments in the amount and on the schedule spelled out in your contract.
The real difference between a bank loan and jewelry loans is that you're putting down collateral. You're offering the lender a piece of valuable jewelry in the case that you can't pay back your loan. For this reason, it can be a better idea to seek out jewelry loans rather than traditional loans if you have bad credit. You're almost sure to get approved when you put down a good amount of collateral in the form of jewelry.
Another difference is the rapid nature of the transaction. Traditional loans may take days or weeks for approval. When you go to a lender to get a jewelry loan, you may get a decision on the spot. It will depend on whether they can easily appraise the jewelry of its value.
It's a Renewable Source of Loans
Once you have your jewelry back in your hands and have paid off your loan, you still have an asset that you can get a loan for again at any time. The value of precious metals has always involved its unwaveringly high price, which makes it a source of value even when the currency isn't available. The bottom line is that owning valuable jewelry can be a smart move when you want some assurance against financial ups and downs.