The escalating cost-of-living crisis is prompting more individuals to turn to pawnbrokers as a method to liquidate assets or to purchase more affordable, used jewellery.
Pawnbroker giant H&T has reported an unprecedented increase in the demand for pawning valuables, where individuals leverage their possessions as collateral to secure loans.
H&T, the leading pawnbroker in the UK and a purveyor of second-hand watches revealed a gross lending amount of £128m for the first half of 2023, marking a 22 percent surge compared to the same period in the preceding year.
The firm’s CEO, Chris Gillespie, has attributed this growth to the “unrelenting inflation and growing interest rates,” resulting in an increased need for short-term loans among the populace.
Most customers who resort to pawnbrokers are typically trying to finance their daily expenses.
Mark Thomas, an analyst at Hardman & Co, stated that “H&T loans are seeing a surge in demand due to the cost of living crisis which is exerting significant strain on clients’ day-to-day finances.”
