When you’re sticking to a budget, sometimes you can’t make ends meet. One of the rules of basic budgeting is that you can’t spend more than you make. If you do, then you have to use some form of credit to make up for the shortage. Either that or dip into any savings you may have accumulated.
If the shortage is going to last more than a month or two, it’s time to reconsider your budget. If it’s going to be less than three months, for instance, a few short-term personal loans may be what you need and using gold jewelry as collateral is an excellent idea.
If you have less than stellar credit, getting short-term personal loans through traditional banks is going to be anything but fast, if you can even get them. You always have other choices, however, even if some of them seem a bit unsavory.
You could always get a payday loan, if they’re legal in your area. Even some traditional banks offer loans against your next direct deposit paycheck. The bank fees are lower than the payday loan establishments (usually a lot lower) – in either case, you have a deadline you may not be able to make.
Pawning gold jewelry is another idea. I don’t know what the loan rates are in the United States, but they’re low in the Philippines. I actually think gold is held at a higher esteem in the Philippines than it is in the United States, but I’m basing my opinion on how people react to it.
I’m going to use an example of a routine my wife, Josie, has used several times. She has some gold jewelry she’s collected over the years. I don’t know how pure the gold is or how much it weighs, but I know she’s been able to pawn it for over USD $1,000 each time (received in Philippine pesos).
When Josie traveled to the United States, she pawned her jewelry to pay for her airline tickets. She sent me one of her paychecks shortly after that each time, by Western Union, so I could get the jewelry back from the pawn shops.
My relatives in the United States couldn’t comprehend how I could afford for her to travel a few years ago and I really couldn’t. Josie did it herself by getting personal loans through the pawn shops in the Philippines.
Josie has had that jewelry for a long time. I paid for some of it, but I’m getting old and I don’t remember when and which pieces. Using gold jewelry as collateral at pawn shops is something I never considered until after we started living in the Philippines.
By: RT Cunningham
June 17, 2014
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