Brits Pawn Luxury Items in Tough Times
New York, NY (PRWEB) June 10, 2012
RoadFish.com men’s lifestyle and finance magazine today empathized with Brits who are strapped for cash in a deepening recession where many are being forced to sell or pawn their prized possessions to make ends meet. The Eurozone crisis has come down hard in the UK, and the trend of using luxury items such as a designer handbags, jewelry, or even a boat or car as security to borrow money is growing rapidly according to the UK publication the Independent. With the London-hosted Olympic Games nearing, RoadFish.com suggested that hard-up Brits take the Independent’s advice of leasing out a room or driveway during the lucrative event. Even if they had to go through estate agents, RoadFish.com believes that there’s money to be made for locals during the popular Games.
Samantha Downes of the United Kingdom’s newspaper the Independent reported that Brits who are finding themselves in a tight financial spot have been resorting to pawning, selling, or loaning valuable items such as jewelry, handbags, and luxury cars. Downes explains that in the years prior to 2008, lending money was quite inexpensive, and as a result the purchase of high-end items increased. The credit crunch began around 2008, and the value of the majority of the luxury goods either remained steady or actually increased in value. The article states that though jewelry has been the most traditional and popular item to pawn or loan in the past, today, pawnbrokers are seeing an increase in more modern valuables like designer handbags. The Chief Executive of the National Pawnbrokers Association, Ray Perry, stated that business was booming for the 2,000 plus practitioners in the UK. The articles states that the business was worth over $ 7,767,500 US dollars (or 5 million pounds.)
RoadFish.com feels for Brits who are hard-up for cash because of the Eurozon crisis, and sent out an empathetic message that they are not alone. RoadFish.com’s Senior staff writer is quoted as saying, “I’m sure that many Americans can relate to how folks living in the UK feel right now. We’ve all been at this recession for a long time, and we’re tired. But nothing lasts forever, and if anything I think that the recession has showed people how tough and strong they really are, and how little is truly needed to get by and lead a fulfilling life. Hopefully that will be the moral of the story when all is said and done.”
The above-mentioned Independent article states that Brits who are “asset-rich but cash-poor” are actually using their luxury items as security to take out a loan. Downe reported that asset-backed borrowing is a growing trend, birthing new lenders who will take valuable items as security on a loan. One company, Borro, launched in 2008 and is described as an “upmarket” online alternative to the traditional pawnbroker. The Managing Director of Claire Gates is quoted as saying, “We saw a gap in the market, where middle-class, affluent people who were asset-rich but cash-poor could use valuable items to either raise cash for projects or see them through a period when cashflow is a problem. We offer a discreet service and a lot of our clients are referred to us via private banks and financial advisers.” Borro will lend the owner between 50-70% the estimated value of items such as antiques, good wine, boats, and valuable art. When the borrower pays the money back, the items are returned. If the borrower cannot pay within six months, the items may be sold.
RoadFish.com offers encouragement to folks having to part with their prized possessions. RoadFish.com’s Senior staff writer is quoted as saying, “I know it’s really nice to have valuable things, but it doesn’t do much good if you’re scrimping and striving to make ends meet. I think of it this way: I can’t take any of it with me in the end, and I’d rather live a life rich in memories and experiences than accumulate a lot of material goods. But be creative! Selling your prized possessions might not be your only hope. Look to the upcoming Olympics to see what opportunities lie ahead. The Games are sure to bring a booming economy, so use it to your advantage!”
Downes suggests an alternative for strapped Brits who don’t have any luxury items available to pawn or use as security. The article states that renting out a room or even a driveway can be lucrative, especially during events like Wimbledon or the upcoming Olympic Games. The founder of events-based lodging website EventfulStays.com, Camilla Shaughnessy, stated, “A three-bedroom property that sleeps six could typically earn 1,800 pounds for a week’s stay, but more than double that during the Olympics, with typical rental rates ranging from 3,500 pounds to 4,500 pounds. We have some homeowners who have been offered 250-300% more than that going rate.” Shaughnessy stated that anybody who lives within 35 miles of an Olympic venue should have good luck.
About RoadFish.com
RoadFish.com is an online men’s lifestyle and finance magazine targeted toward men in their 30’s and 40’s that have already attained a moderate level of success in life, and are striving toward more. It goes over current events of interest to this group, such things as exciting adventures, consumer interests, hot chicks, and sports and horse racing as well as ways to make more and save more money. It is a publication owned by Purpose Inc.
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