What I've Learned From Pawning And Why I Did It


Do you fear doing something for the first time for the reason that you don't have an idea how things work? I realized that when you are in a situation where somebody's life depend on you, you'll be able to conquer your fear.

My advocacy

Breast Cancer Awareness is my advocacy since my mom was diagnosed with breast cancer in 2002. When she passed away in 2010 I have vowed every year to sponsor one person who is financially incapable of at least be checked by a doctor and undergo breast ultrasound or mammogram. 

October is Breast Cancer Awareness Month and I take advantage of the discounts and promos offered by hospitals. I was to pay for someone's consultation but it was a tough month for me as a freelancer. One of my clients did not send the payment on our agreed date. I was waiting until the last two days of the month but no payment was sent on my PayPal. Even if  he'll pay me by month end, I still have to transfer the fund to my bank account and it will take 3-5 banking days before I can withdraw. I need the money right away.

My option

I was faced with a financial problem before and I was considering pawning the jewelry set I bought with my first bonus. But I was too afraid because I don't know anything about pawning. I've heard horror stories of pawnshops scratching the jewelry or appraising it too low. I also fear being judged by people. Back then, I decided to instead make a cash advance from my credit card through an ATM. It was the worst decision ever. The interest charged to me was too high and I paid for a cash advance fee. 

Again, I thought of going to the pawnshop. I nervously entered the first pawnshop I saw and asked if I could have my jewelry appraised. 

I asked for the appraised value of the ring and I was told it's good for P4,900. The appraiser said they only consider the value of the gold because their branch is not capable of appraising the stone.

I walked a few blocks and saw a Cebuana Lhuillier. I've only been to a Cebuana Lhuillier branch twice. The first time was when I claimed a payment remittance from a client and the second time was when I paid for my Unified Tennis Philippines membership. On both occasions, I never felt uncomfortable transacting. 

The appraisal

I requested for my ring to be appraised. After a few minutes, I was handed a paper with a computation ( weight, the stones etc) and the appraised value.  I feel relieved for not settling with the first pawnshop I saw.  The ring was valued at P6,395. If I were to pawn the jewelry set, the total appraised value is P14,010. I got this for P15,000. True enough, Cebuana Lhuillier has the highest appraisal rate.

The Pawning Experience

I filled out the client information sheet and presented one photo-bearing ID. My jewelry was placed in the plastic, sealed, and I affixed my signature. I'm confident that my jewelry is safe and secured.

If you are wondering what are the valid IDs:

1.Passport; including those issued by foreign governments
2. Driver’s License
3. Professional Regulation Commission (PRC) ID
4. National Bureau of Investigation (NBI) Clearance
5. Police Clearance
6. Postal ID
7. Voter’s ID
8. Barangay Certification
9. Government Service Insurance System (GSIS) e- Card
10. Social Security System (SSS) Card
11. Senior Citizen Card
12. Overseas Workers Welfare Administration (OWWA) ID
13. OFW ID
14. Seaman’s Book
15. Alien Certification of Registration/ Immigrant Certificate of Registration
16. Government Office and GOCC ID, e.g., Armed Forces of the Philippines (AFP ID), Home Development Mutual Fund (HDMF ID)
17. Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
18. Department of Social Welfare and Development (DSWD) Certification
19. Integrated Bar of the Philippines ID
20. Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP, SEC or IC

I was given the cash, an official receipt and the pawn ticket. Since I told the personnel that it's my first time to pawn a jewelry, she explained to me the maturity date, the expiry of redemption, and the payment of interest. 

Good to know: Upon maturity date (which is one month from the date you pawned your jewelry), you can either redeem or renew. If you don't have the money yet to redeem on the first month, make sure that you renew in order to pay only for the 4% fee.

Lessons learned

Pawning your valuables is not something to be ashamed of. It's yours anyways so should you need some funding, it's your decision to choose where you could get the best value. 

For a first timer like me, it's wise that I did not settle right away at the first pawnshop I had my ring appraised. It's okay to walk away. Having your jewelry appraised doesn't mean you have to pawn it right away with them. Next time, I need not waste time checking out other pawnshops. Cebuana Lhuillier has the largest network of branches. There is definitely a branch wherever I am in the country.

Pawning is the easiest and quickest way to have money if you find yourself in a tough financial situation.

Have you tried pawning? Share with me why you had to pawn your valuables and how was your experience?