WKOW 27: Madison, WI Breaking News, Weather and SportsBusiness is booming for pawn shops

Business is booming for pawn shops

DANE COUNTY (WKOW)—With the holidays just around the corner, people are finding new ways to pay off those big shopping bills.  

It's apparent locally. Owner of University Coin and Jewelry Dennis Lemke said this has been his best year of business since opening 26-years-ago in Middleton.  

The re-sale shop does not give loans, but buys and sells silver, diamonds and gold.  

"This is a very unusual recession in that we have a special opportunity, gold prices being high…right at the time when people need money," said Lemke.  

Lemke said that around the holidays, it seems like a lot of people need the extra cash from selling their possessions.  

On the East side of Madison, PawnAmerica district manager Karl Hattman said their pawn shops have grown in popularity.  

"I think that second hand goods are becoming a much more viable option for people looking to save money," Hattman said.  

He said overall business transactions at PawnAmerica have increased by about 45 percent over the past five years.            

Angela Swanson shopped at PawnAmerica for the first time today. She said retail stores are costly, and looking for Christmas gifts at the pawn shop may be a better option for her budget.           

Pawn shops across the country have gained popularity recently since they provide a new way for people to get cash.  

Hattman said loan fees range from three to 20 percent of the amount paid on the item.  

He said one benefit of pawn shops is that if the customer does not pay the balance, it does not affect their credit score.