If you’re a pack rat, have a storage unit full of items you never use, or simply want to make a little extra cash, then it may be time to visit your local pawn shop. Most of these businesses offer two services to people in your position: You can either sell your items or pawn them. However, many people are unsure of the difference between these two services. To help you pick the service that’s right for you, Gold & Silver Pawn, based in Hinesville, GA, has put together this guide explaining the differences.

Pawning

When unexpected life events happen or bills begin piling up, many people turn to a pawn shop for a little bit of help. From electronics to gold and jewelry, these stores will provide a small loan in exchange for holding onto your items. For instance, if an emergency arises, and you need a little extra cash to get you through the month, you could pawn something you own, such as your tablet or piece of jewelry. The pawn shop will then lend you a certain amount of money for the item and give you a time frame to pay back the loan. Once you’ve saved up enough, you can return to the store and get your item back in the same condition in which you left it.

This service comes with one particularly important caveat: The pawn shop will let you know what the time limit is for holding your item. If you have 30 days to pay back the loan but are unable to, then the business will put your item on the shelves to make back their money.

Selling

Selling to a pawn shop is essentially the same as selling items to any other secondhand store. One benefit to this service is that you can typically receive more money in exchange for your items. However, you won’t be able to get your item back from the shop, as it will then be theirs to resell.

If you're interested in making some extra cash, a pawn shop is often a great place to do this. Keep in mind that if you’re looking to earn the most money possible, it may be best to sell, while pawning is a great service to help get you out of a jam. If you have any questions, feel free to call Gold & Silver Pawn at (912) 876-6580, or visit them online.