Borrowing was never encouraged in our family. My parents never had a credit card, mortgage loan, or owe any bumbay (Indian lending money in the Philippines).
If borrowing would ever come up in a discussion, my mom would always say to pay what you owe. Or do not be buried in debt to buy any luho (whim).
If you can’t afford it, forget it. Or buy it whenever you have cash.
So if we want something, like the time my sibling and I pitched in to buy our first adult bike. We keep that habit and progress to buying appliances for the house like stove, coffee maker, electric fan, and vacuum from an online side hustle.
No matter how frugal we are, there were times that a middle family like us, would need more from our father’s seaman salary.
Pawning for Survival
My mom would come to the rescue. As a smart housewife, my mother would pawn one of her jewelries which is neither extravagant nor cheap.
Its quality would pass the pawnshop standard that will give the cash equivalent of the jewelry’s value. The cash would then go to pay for electricity, medicine, tuition, grocery, and whatnot.
The Circle of Debt
Pawning has always been a debt saver for our family. Well we do have debt to a business but not to relatives, friends, or neighbours.
The last thing we want to happen is to burn the bridge of a good relationship as a result of unpaid debt.
Although my mom never work again after getting married, she is able to budget the income and pay back the loan to the pawnshop before the due date.
My mom’s humble jewelry collection will be complete after every financial crisis which do not include special occasion like birthday and graduation.
We can rely to such fortune (in our standard) during the good and bad times.
Something is Missing
My mother is not fond of buying new jewelry. What she have were bought during her younger years as a married woman. My father must have gifted some.
My siblings and I also have earrings that our mom keep. I should probably ask for it just to keep the piercing holes in my ears open in case I would have the need to wear it.
My moms collection has a beauty of its own. But pawning has degraded the look and value of her jewelries.
One of the earrings lost one of its stone. While the other, became thinner. This unfair practice of pawnshop happens in the Philippines. Have you experience the same treatment?
Nowadays, with the use of technology, people can pawn their personal stuff like jewelry and gadgets through PawnHero, a pioneer in online pawning in the Philippines.
When is Pawning Reasonable?
I grew up learning that people around me resorted to pawning for several reasons.
A relative pawned a house and lot for medical expenses. Some of our neighbours would pawned their appliances. My father who is fond of used items would gladly accept the offer.
Tip: You can earn by becoming a lender instead of a borrower who will pawn a house and lot. The land title and written agreement serve as collateral. Bonus point if it’s a rental property.
Pawning is a short-term solution for am important financial needs.
When other means of funding were exhausted, then turn to pawning occasionally. Do not rely to it all the time.
If you rely to pawning all the time then it only tells one thing. You are buying many unnecessary things instead of saving and investing.
Why not save and invest during the heydays when health and wealth is ranging from fair to its peak.
When sickness or job loss strikes, you can take out a portion of earning from an investment. No need to touch the capital or pawn the Smart TV or sofa bed. Are you sure it’s alright to miss the espresso machine?
Have you tried pawning anything in your house? And for what reason?