When customers have any spare cash, we will always encourage them to pay something off their pawnbroking loan to reduce the stress of future payments. If you’re looking for an easy way to pay off your pawn ticket and getting your property back, there are two effective ways that this can be done…
Partial payment is usually a cheaper method of paying off your pawn ticket and will need to be made during the original term. Payment(s) can be any amount although they do not buy you any extra time on the loan.
Within the normal term of your agreement, you choose whatever amount you would like to repay (which can be less than the interest charged so far) and it will be allocated appropriately against your loan and interest – depending on how much you pay. From this, a transaction statement will be issued, showing how much you have paid already so
far. Please note that this does not change or extend the end-date of your agreement but this often the cheapest and most time effective method of payment in the long term.
Renew and Reduce
‘Renew and reduce’ is usually a dearer option, and cannot be less than the interest already charged. However, it does give you a new end-date meaning you can usually pay up to six months later.
‘Renew and Reduce’ means you can pay all interest that has accrued so far, plus any additional amount that you like (often in multiples of £5). This will then generate a new contract and therefore an extension on your current pay date. This option is favoured by some clients because, not only can you pay all the interest to date, but you
will have a further seven month period in which to reclaim their property. In many instances, you can usually ‘Renew and Reduce’ even after your normal agreement has expired.
Although you will end up eventually paying more money, this system it does still reduce your debt and buy you more time in which to reclaim your property.
We want to help you make the right choices and so it is always important to careful consider your finances before agreeing to any loan arrangements. Our interest rates are tiered according to loan value, so you may wish to avoid reducing your loan to a value which attracts a higher rate of interest. Our rate bands are clearly published in store and on our website, but please ask to speak with a manager if you would like advice about your individual agreement.
If you would like to learn more about the services provided by Vintage Pawnbrokers, contact our team at Vintage Pawnbrokers via our contact page or visit us in store today.