of pawning and borrowing...

[zhihau]

couldn't help but notice that these age old profession could still thrive in our time and age. me noticed the increasing prevalence of the pawn shops some 10 years back, noted the way they modernised their business model, taking in a wider range of products, it even spawned this concept of this particular store called "cash converter".

then came the legal money lending business which was brought alive some 5 to 7 years back. the advertisement for quick cash came about in myriad forms, from pamphlet on the walls where you could tear off the tail portion containing the number to call, to pamphlet slotted into our mail boxes, and even advertisement placed in newspapers...

gone were the days where folks lived within their means, overcame their problems with innovative solutions, taking hardship as tribulation and a test of character. humility, grace and perseverance had been taken over by irresolute, pride and prejudice; materialism becoming a convenient tool to fill the gaps of insecurity, emptiness of one's life. coupled with the incessant need to quantify, folks are further drawn into this vortex of hubris, without a clue of why they are in it the first place.

when are we able to rid ourselves of greed, anger and ignorance?

 

[Clone]

when are we able to rid ourselves of greed, anger and ignorance?

Me think it's ok to be greedy, but be less angry and never be ignorant.

 

[Narong Wongwan]

going to pawn shop used to be a shameful or face loss kind of thing.
now machiam no such stigma.....not exactly a good development.

 

[halsey02]

going to pawn shop used to be a shameful or face loss kind of thing.
now machiam no such stigma.....not exactly a good development.

That you for not showing tat 'sweet' face as your avatar, have trouble with my neurosensory most of the day, irrespressible twitch occur looking at IT! kum sia!, xie xie, terima kasi, salamat po...

 

[jw5]

couldn't help but notice that these age old profession could still thrive in our time and age. me noticed the increasing prevalence of the pawn shops some 10 years back, noted the way they modernised their business model, taking in a wider range of products, it even spawned this concept of this particular store called "cash converter".

I don't have a problem with pawnshops.
It is for those who bought valuable (and probably useless) items during good times, and perhaps are facing some difficulties now.
Hence they pawn their valuables for cash.

Cash converters are more for those who want to sell their unwanted items rather than just throw away.
Cannot get much cash from it.

The problem is with loansharks and even the "licensed lenders".
Noit enough is being done about the former,
As for the latter, what in the world is a "licensed moneylender"?
Didn't they used to be called banks and finance companies?
There will inevitably be lots of defaults, and not all of these will be the borrowers. The lenders will eventually be in trouble too.

 

[lifeafter41]

I don't have a problem with pawnshops.
It is for those who bought valuable (and probably useless) items during good times, and perhaps are facing some difficulties now.
Hence they pawn their valuables for cash.

Cash converters are more for those who want to sell their unwanted items rather than just throw away.
Cannot get much cash from it.

The problem is with loansharks and even the "licensed lenders".
Noit enough is being done about the former,
As for the latter, what in the world is a "licensed moneylender"?
Didn't they used to be called banks and finance companies?
There will inevitably be lots of defaults, and not all of these will be the borrowers. The lenders will eventually be in trouble too.

Was wondering if the pawning and borrowing stems from gambling in the Casinoes.
The pawnshop moneylenders are doing a roaring business now.
When it come to there is nothing pawn to feed the gambling habit, selling house/hdb flat will come next.

Perhaps another 2 years, we will see this trend emerging.....

 

[OverTheCounter]

This is a great post, Zhi Hau.

One reason is the growing income gap, which creates many social pressures between the haves and the have nots. Another is the social climate fostered by the PAP which emphasizes growth at all cost, treating SG citizens as economic digits, encourages rampant materialism, overly focussing on material wealth, money as a status symbol, etc.

I've seen families who host wedding for their sons and daughters and cook up a lavish spread. But next day they will take the aluminium utensils and the big crockery to cash converter to change back in cash.

I've also seen people who spent night out pubbing with friends, painted the town red, took their gf to fanciful restaurants, the next day they took they laptop and computer stuff to cash converters to sell it for literally pennies on the dollar.

Is this socially healthy? Is this the right way for an individual to live his life? I think not.

In the past jewellery was a real status symbol. People will demand jewellery as bride's dowry, will wear expensive jewellery to grand events to show that they are wealthy. But when the tough times hit, they will take the jewellery to the pawn shop.

couldn't help but notice that these age old profession could still thrive in our time and age. me noticed the increasing prevalence of the pawn shops some 10 years back, noted the way they modernised their business model, taking in a wider range of products, it even spawned this concept of this particular store called "cash converter".

then came the legal money lending business which was brought alive some 5 to 7 years back. the advertisement for quick cash came about in myriad forms, from pamphlet on the walls where you could tear off the tail portion containing the number to call, to pamphlet slotted into our mail boxes, and even advertisement placed in newspapers...

gone were the days where folks lived within their means, overcame their problems with innovative solutions, taking hardship as tribulation and a test of character. humility, grace and perseverance had been taken over by irresolute, pride and prejudice; materialism becoming a convenient tool to fill the gaps of insecurity, emptiness of one's life. coupled with the incessant need to quantify, folks are further drawn into this vortex of hubris, without a clue of why they are in it the first place.

when are we able to rid ourselves of greed, anger and ignorance?

 

[Narong Wongwan]

The problem is with loansharks and even the "licensed lenders".
Noit enough is being done about the former,
As for the latter, what in the world is a "licensed moneylender"?
Didn't they used to be called banks and finance companies?
There will inevitably be lots of defaults, and not all of these will be the borrowers. The lenders will eventually be in trouble too.

Moneylenders has always been around but previously it was illegal to charge more than 18% per annum. Pawnshops also charge this rate only.
Only credit cards could legally sidestep by charging 24% per year.......now law relaxed it's 24% per month or higher as long as agreeable by both parties.

 

[OverTheCounter]

Bro jw5,

I have nothing against pawnshops either, they do serve a useful function for those genuinely in need. The problem lies with how people abuse their own lives.

When times are good, people buy flashing things, expensive jewellery to show off, instead of saving and investing for the future. When times are bad they go an pawn it for pennies on the dollar. Doesn't make any sense.

Licensed money lenders are basically leegalized ah long. They are not called ah long because interest rate lower than ah long, but the idea is the same actually. They will still suck you dry if you succumb to the temptation to overspend and borrow to finance your lavish lifestyle.

These leegalized ah longs have already done their calculations, for every defaulter there will always be other people who pay up on time, and the interest paid will more than cover for the defaults. They will always make money because of the high interest rate.

I don't have a problem with pawnshops.
It is for those who bought valuable (and probably useless) items during good times, and perhaps are facing some difficulties now.
Hence they pawn their valuables for cash.

Cash converters are more for those who want to sell their unwanted items rather than just throw away.
Cannot get much cash from it.

The problem is with loansharks and even the "licensed lenders".
Noit enough is being done about the former,
As for the latter, what in the world is a "licensed moneylender"?
Didn't they used to be called banks and finance companies?
There will inevitably be lots of defaults, and not all of these will be the borrowers. The lenders will eventually be in trouble too.

 

[jw5]

Moneylenders has always been around but previously it was illegal to charge more than 18% per annum. Pawnshops also charge this rate only.
Only credit cards could legally sidestep by charging 24% per year.......now law relaxed it's 24% per month or higher as long as agreeable by both parties.

The proliferation of these "licensed moneylenders" recently is astonishing.
It's almost as if borrowing from these people is being encouraged.
The government don't seem to realise that people who are borrowing for housing, cars, valid businesses are still going to banks and finance companies.
Or are they just trying to increase gdp?

 

[jw5]

Bro jw5,

I have nothing against pawnshops either, they do serve a useful function for those genuinely in need. The problem lies with how people abuse their own lives.

When times are good, people buy flashing things, expensive jewellery to show off, instead of saving and investing for the future. When times are bad they go an pawn it for pennies on the dollar. Doesn't make any sense.

Licensed money lenders are basically leegalized ah long. They are not called ah long because interest rate lower than ah long, but the idea is the same actually. They will still suck you dry if you succumb to the temptation to overspend and borrow to finance your lavish lifestyle.

These leegalized ah longs have already done their calculations, for every defaulter there will always be other people who pay up on time, and the interest paid will more than cover for the defaults. They will always make money because of the high interest rate.

Agree with your points about people abusing their own lives and the ever growing materialistic and "face" mentality.
At least for people going to pawnshops, they already dug a small hole and are not digging a bigger hole.
Of course, that depends on whether they learnt from their mistake.

The lenders will also get in trouble, because ultimately there will be some lenders who will be unable to outwit or outmuscle their clients.
These will be the ones who will get into trouble too and they will be no better off than the borrowers.
As for the borrowers, the only way is down and that is probably true for close to 100% of them.

I am all for the government helping those hardworking chaps and their children who suffer misfortune or tragedy, but for those who abuse their lives,
my suggestion would be a regimental program for them until they get their senses and footing back. A mixture of jail and bmt.

 

[Agoraphobic]

Bro jw5,

........................When times are good, people buy flashing things, expensive jewellery to show off, instead of saving and investing for the future. When times are bad they go an pawn it for pennies on the dollar. Doesn't make any sense.........

There is no incentive to save. I remember during Primary school POSB gave 4% interest p.a.. Now, even FD interest rates are so paltry.

People nowadays don't spend what they save, they spend what they can borrow.

Cheers!

 

[Agoraphobic]

...........when are we able to rid ourselves of greed, anger and ignorance?

Almost everyday, we are pounded with the necessity of economic growth. How?

Cheers!

 

[Narong Wongwan]

The proliferation of these "licensed moneylenders" recently is astonishing.
It's almost as if borrowing from these people is being encouraged.
The government don't seem to realise that people who are borrowing for housing, cars, valid businesses are still going to banks and finance companies.
Or are they just trying to increase gdp?

i know of people who take overdraft/revolving credit to pay downpayment for cars......and best is the cars already those high loan type.

 

[Borat]

Cash converters are more for those who want to sell their unwanted items rather than just throw away.
Cannot get much cash from it.

Never if one can help it go to Cash Coverters for they will give lots of hassles plus you get very much less value for your items.

 

[laksaboy]

Most of the pawn business today is for funding gambling sprees in the two casinos.

It does not take a genius to figure out why the modern-looking pawn shops started opening everywhere right around early 2010, when the first casino RWS opened its doors.

 

[zeddy]

Never if one can help it go to Cash Coverters for they will give lots of hassles plus you get very much less value for your items.

Agree... A colleague decided to sell off his 1K Mountain bike at Cash Converter.. He was horrified when the staff there only willing to pay him $100 for his bike.. In the end he decided not to sell it there but instead to another bicycle enthusiast on the Internet for $500... By the way, pawnshops are a good place to buy 2nd hand Gold... Price is slightly cheaper than the normal jewellery shops...

 

[GoldenDragon]

Most of the pawn business today is for funding gambling sprees in the two casinos.

It does not take a genius to figure out why the modern-looking pawn shops started opening everywhere right around early 2010, when the first casino RWS opened its doors.

If you have been to Macau, you would have spotted many pawnshops in the vicinity of the casinos. Like 7-11, they are open 24/7/365.

 

[johnny333]

.... it even spawned this concept of this particular store called "cash converter".

Today I happened to be visiting one of the Cash Convertors outlets & was surprised that they had plenty of $3,000+ watches I always though that they only sold other people's junk

 

[groober2011]

Agree... A colleague decided to sell off his 1K Mountain bike at Cash Converter.. He was horrified when the staff there only willing to pay him $100 for his bike.. In the end he decided not to sell it there but instead to another bicycle enthusiast on the Internet for $500... By the way, pawnshops are a good place to buy 2nd hand Gold... Price is slightly cheaper than the normal jewellery shops...

There are a few Singapore websites that one can advertise if one need to get rid of unwanted stuff. Not Singapore eBay because I hardly find items being auction are 2nd hand as most are new. The better ones are Gumtree, OLX and Phing as one can get some good items cheap if one knows what to look for. However a note of caution, like anywhere else, watch out for the scammers.