“My loan is due, and I may be late paying it off. Do I have any options?”
At Pawn 1, we understand that life happens. The unexpected arises, and all of a sudden you need to use your budgeted cash elsewhere instead of redeeming your loan. Will you default on your loan? Not if we can help. You do have options!
When your loan is due and you are unable to make a payment, you have the option to rewrite your existing loan to avoid default. If you take a look at your pawn ticket, you will notice there are a set of dates listed with dollar amounts showing you exactly how much it will cost you to redeem your loan during a specific timeframe. The very end of that list shows the total amount of interest owed at 90 days. This amount is your rewrite amount. Making this payment extends your loan for another term, saving your item from default. This provides you with a little bit of breathing room to budget for the upcoming months.
At the time of rewrite, it’s best to remember to bring in your current pawn ticket to avoid the lost ticket fee. Once you make the payment, you will receive a new pawn ticket outlining the new duration of your collateral loan. It is worth noting that there are no limits regarding how many times you can rewrite a loan. However, loans can only apply for rewrite at the very end of the current loan term.
You can also decide to pay down some of the principal amount owed on the loan at the time of rewrite. This is especially helpful with high dollar loans. Your new pawn ticket will reflect interest amounts owed based on the new principal amount of the loan.
In addition to principal payments, you may be eligible for a cash increase on your loan at the time of rewrite. Cash increases on loans are solely up to the managers discretion. If you’re late paying on the loan maturation date, it is best to contact the store where your loan is stored and ask for an extension. Keep in mind that doing so will result in another months interest added to the total as it is the beginning of a new monthly cycle.
Rewriting your loan is the best way to keep your loan from defaulting. It’s helpful to subscribe to the SMS service we offer for reminders of your loan balance, due dates, and rewrite amounts. That way, you can stay current on the status of your loans in order to maintain a healthy return ratio.