Borrowing Alternatives: What To Do When You Don't Own The Crown Jewels But You Need A Really Big Loan
When royalty needs money, they can levy taxes or they can levy the crown jewels for a loan from another country. While the former is more common than the latter, it still shows that even the supposed wealthy have their money issues. If you need a really big loan but your jewelry collection would not levy the kind of funds you need, there are some borrowing alternatives that may work for you.
Okay, so you do not own the crown jewels, but the jewelry you do own is worth something. What could you add to the jewelry to increase the amount of money you could borrow through a collateral loan? Does the lender and holder of the collateral loan take anything else of value? How about collector cars, expensive and iconic motorcycles, priceless musical instruments or other items of value? If the lender of collateral loans is willing to take just about any expensive collectible or priceless heirloom, you may be able to compile several items all in one transaction to get the kind of money you need with this kind of loan.
Pawn Loans and Sales
If you cannot find a collateral lender near you, a pawn lender may be the next best thing. A pawn loan is similar to a collateral loan in that you are using valuable items as collateral and borrowing a little bit of money on the items' overall values. However, you probably will not be able to borrow the full value of the items, since that is not how a pawn shop works. You could get a little bit more money if you are willing to sell the items to the pawn shop outright, but you should be very careful about this. You need to haggle, and haggle well, if you are going to get the most possible money from selling your valuables. Do not agree to the first big number the pawn broker offers, because there is always some wiggle room (unless the pawn broker sees that you are desperate, then he or she may clamp down and not offer you more).
Second and Third Mortgages
If your credit is fairly good, and you own your own house, you may be able to raise the money you need by applying for and securing a second or third mortgage on your house. Loans in mortgage lending and refinancing may be the ticket for you if you have to raise thousands of dollars very quickly, and your jewelry and other valuables just do not cut it. Just remember that a second or third mortgage on your home will drastically increase your monthly mortgage payments, and you could lose your house to the bank. However, if there is no other way and you are really in a tight jam, a second or third mortgage could be just what you need to resolve your major and immediate financial issues.
For more information and details, talk with a collateral loan lender or pawn shop dealer, such as those at Sol's Jewelry & Loan.