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To Pawn or to Sell? Pros and Cons of Pawning and Selling


When the unexpected need to shell-out cash arises, pawning and selling are two options to consider. There are several things to take note of when deciding to either sell or pawn an item. One of the most striking differences between selling and pawning: you can get your cash without giving up your item of value completely.

When pawning, your item—say, a jewelry or gadget— serves as collateral in order to secure a loan. This is left with the pawnshop and you can easily have it back once you’re ready to repay your loan. In a sense, it is a process of “pahiraman” between you and the pawnshop.

Selling an item means basically giving up that item for cash. Ask yourself:

Do I want this item back? What does this mean to me? Can I live without this? How replaceable is this? If this item is highly irreplaceable to you, then consider pawning instead.

In making this decision, it’s relevant to consider the value of your item as well. For example, should you decide to pawn a piece of jewelry, say, a diamond ring, you can use this as collateral over and over again as long as you’re able to pay for your loans on time to get this item back. And remember: an item that increases in value over time also merits larger pawn loans.


What also sets pawning apart is that you have no standing obligation to repay your loan since your item serves as collateral already! If you can’t pay for the item back on time, you can leave it as that. Also consider that a pawn loan is less risky for pawnshops—you can get more money from pawning than from selling with lesser risks from your end too.

Cebuana Lhuillier accepts gold, diamond, and platinum jewelry and watches, as well as selected non-jewelry items such as cellphones and laptop computers. We assure the highest appraisal and security for pawned items. Advance interest will be charged Php4 for every Php100 loan amount. To maintain the excellent standard of service offered by Cebuana Lhuillier, clients will be charged additional one percent (1%) of the principal loan, but not exceeding five pesos (Php5).

Ready to pawn your items? Do you wish to know more about pawning? Visit the Cebuana Lhuillier branch nearest you—we’d be glad to help you out!