Should You Sell Your Jewelry Or Get A Payday Loan?

In today’s struggling economy, fast cash can seem nearly impossible. Many are turning to selling jewelry or taking out payday loans to make a few extra bucks. When given the choice between the two, selling the jewelry is always a better idea.

In a real financial crisis, some turn to Payday loans for relief. What they don’t realize is that this type of loan will only leave them in even deeper financial trouble in a few months. At the time, this type of quick cash advance sounds like a dream come true, but in reality, the borrower will drown themselves in an endless cycle of debt that is nearly impossible to get escape. With the outrageous interest rates of payday loans, the people who are desperate enough to take them out in the first place, will most likely not be able to pay the astronomical interest rates back later.

Although jewelry has sentimental value, selling the jewelry for money is a much better idea than getting a payday loan. The truth is- jewelry is just an item. It’s an unnecessary thing that will not get you an education, a house, or a car. Jewelry does nothing to improve your quality of life. Sure, it looks pretty- but that’s about it. Selling your jewelry can get you the fast cash you need to pay the bills. A Payday loan only adds to your bills later. 

There are a number of cons when it comes to payday loans. Let’s start with the APR (Annual Percentage Rate). This is the rate at which a loan will accumulate interest. This is the amount of money a borrower must pay beyond the money he or she is actually loaned. This is the cost of the loan. Fact: the cost of a payday loan is outrageously expensive. The APR of this type of loan is enough to make this type of loan altogether insane. Borrowers will end up paying much more than they were actually lent. Payday loan companies are in the business to make a profit, and they will always tag on astronomical interest rates and fees.

Payday loans should never even be the last resort. These companies loan money without checking for credit, as most banks would. It’s an easy way to get money fast, but in the long run the borrower must spend far more in interest rates. In reality, it’s a trap. It seems easier to the desperate broke, but it will eventually leave them in even more of a financial crisis without anyway out, that is, but to borrow more money. The high interest rates make it nearly impossible to pay the money back. It’s like running on a treadmill of debt that will only continue to speed up.

Although selling jewelry has more pros than a payday loan, there are a few negatives when it comes down to the business. Yes, the price of gold has been hitting record highs. But according to consumer reports, many sellers are being ripped off by the more popular companies. Some known for offering a wimpy 8% of what the jewlery is actually worth. So, do your research! Know who you are selling to and how much your item should be worth. Experts say to at least figure out a rough value before going into sell. While some companies are willing to give a decent chunk of money, others will rip you off without any explanation.

Overall, fast cash can be a tricky business. Because everyone out there wants to make money, it is hard to know when to trust a company, and when to tell if you’re getting scammed.