UK Turns to Pawnbrokers Amid Cost of Living Crisis as Loans Surge 25%
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More people in the UK are turning to pawnbrokers to make ends meet amid the cost of living crisis. Pawnbrokers have seen a 25% increase in loans.
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Wealthier people with mortgages are also pawning luxury items like Rolex watches and designer handbags. Pawnbroking is an option when they can't get loans elsewhere.
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Customers often pawn sentimental jewelry like wedding rings. Many intend to repay the loans and redeem items, but some may lose precious heirlooms if unable to repay.
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Pawnbrokers say they provide a "solution" for people struggling financially, but debt charities warn it can make problems worse long-term as interest builds up.
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Disabled and unemployed people also rely on pawnbrokers when they can't get support elsewhere. Customers feel it's their only option to pay bills, despite having to give up cherished possessions.