Instead of turning to a bank, where it’s become increasingly difficult to obtain a loan, many Coloradans who are unemployed or need extra cash are drawn to pawn shops — the original banker — to sell items or use them for collateral loans.
Many hope of returning for them when they have cash.
“We’re busy for the wrong reasons,” said Grandpa’s Pawn and Gun owner Rod Brandenburg in Longmont. “People aren’t working. They’re borderline destitute. They want to be working, but there just aren’t jobs.”
A 2010 National Pawnbrokers Association survey found that the average pawn loan amount increased from $80 to $100 between 2008 and 2009. The study also found an 8 percent increase in the number of pawn loan defaults between 2008 and 2009. Survey data for 2010 is not yet available.
“Pawn store customers on average are 36 years old and tend to borrow only what they need, as indicated by the average national loan amount,” said Dave Crume, president of the National Pawnbrokers Association. “The increase in the average pawn loan
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