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When you go to pawn something, basically you have to have some collateral, such as jewelry over $1000, and then you can get a
paycheck loans against that jewelry, or whatever you have. You then just return the money plus interest and then you get the item
back, much like a payday loan. If you don't return the collateral then the pawn shop will sell your collateral. You get about 10% or 5% of what the item is worth, so the
pawn shop owner can make a profit if you don't return the money. If you sold the item, you'd get much more, of course,
that at a pawn shop, but if you probably didn't want to sell the item in the first place, you just wanted
paycheck loans till you get paid from your paycheck
(serving much like a paycheck loan does) or when you get money for some job that you are doing.
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