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It sounds kind of crazy, given the taboo nature that comes behind them, but many people have taken their holiday lists not to Wal-Mart, Target or Best Buy, but rather to pawn shops.

That’s right – pawn shops.

Pawn shops have become less and less stigmatic over the past couple years due to the success of History Channel’s “Pawn Stars” and TruTV’s “Hardcore Pawn.”  (Total side note: for our readers out there that do not live in Michigan, “Hardcore Pawn” is filmed in our very own slice of paradise – Detroit.)

Shopping at a pawn shop means great prices on products that some families may not be able to afford at your run-of-the-mill electronics shop, as well as wholesale prices on jewelry and other items.  Many shoppers have no problem with the fact that the items could be delicately used.

After all, after you open your brand new TV, plug it into the wall and turn it on, isn’t that considered a used item?

Especially in these hard economic times, shopping at a pawnshop may be one of the only ways for parents to cross items off of their children’s holiday lists.

Yigal Adato, co-owner of CashCo Pawn in San Diego, explained “We’ve had a couple of customers who say, ‘You know, if it wasn’t for your guys’ prices, my kids wouldn’t be getting anything this year.’”

Since more and more people are strapped for cash nowadays (did you know that 1 in 2 people are considered at or below the poverty level?), many are just ditching the idea that items could be stolen, and viewing it as an easy place to find a good bargain price.

Pawn shops have seen a stark increase in business since the economy has turned south.  The average amount of a loan has grown from $80 in 2008 to $150 today.  Also, as a result of the soaring prices of gold, more and more people have been looking to sell their old jewelry to make a quick buck.  Some pawn shops, such as the Pawn America chain stores, said business was up over 50 percent this holiday season compared to last year.

Brad Rixmann, founder of Pawn America, said the goal was to make pawn shops more inviting for consumers.  “We want people to think of us as an alternative to Target, [or] Best Buy.  You can buy stocking stuffers for next to nothing,” he explained.

Well, Mr. Rixmann, taking a look at the profit increase compared to last year, I think you’ve succeeded.

To read more about holiday shopping at pawn shops, click here.

Eric Mally is a writer for Quicken Loans, an amazing place to work.  Find out more about being a part of our team at Quicken Loans and learn how we Amaze our clients.

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