WTHR |Boom time for pawn shops

Boom time for pawn shops

Fishers - Hard times are good times for pawn shops doing big business. They're watching profits soar and seeing a group of customers that would never have thought of pawning their possessions

Stung by declining household wealth and job losses, a new class of clientele is turning to pawn shops, selling, in some cases, luxury items to make a mortgage or car payment or securing short-term loans with collateral like motorcycles or diamonds.

"They were living luxurious lifestyles and they had a lot of nice stuff and because of the market, that brought them to me," said Erik Botts, pawn shop owner.

Erik Botts owns Super Pawn and says business couldn't be better. Hard times are good times - so good that he recently opened his second store after seeing an influx of new customers.

"Trying to attract the north side business. I opened a very clean well-lit location that my clients could come to and feel very comfortable," said Botts, who is seeing customers from Carmel, Noblesville and Fishers.

But someone's loss is another's gain. Pawn shops are also seeing sales rise on items like flat screens, computers and jewelry.

"I'm buying these guitars because I work on guitars and I usually get a good deal. I fix them up and resell them," said Shaz Salik, pawn shop customer.

Unlike the bank, where it's now harder for many people to get a loan, in a pawn shop, credit scores don't matter. In a nasty recession, offering up a prized possession for a quick loan is becoming the best option to cover the bills.

Financial experts warn not to borrow your way out of debt. Pawning can be a relatively less expensive option than bounced checks and late credit card payments, but only if you pay back the loan on time.