Stacy Perman

Pawnshops

A longtime source of ready cash, pawnshops have seen a steady rise in business as the economy has fallen. Pawnshops generally hold on to an item during a state-mandated period of time. After that time, customers can reclaim the item if they repay the loan and interest. If they default, the shop is free to resell the item, and neither loan nor default is reported to credit-rating agencies. Dave Adelman, president of the National Pawnbrokers Assn., an Atlanta group with 2,700 members, says business is up "anywhere from 10% to 30% depending on the region." Moreover, he says, "the customer base has widened. Normally we see blue-collar, low-to-middle-income folks. Now we're seeing more middle- and upper-income people. A lot of people are having trouble going to the bank to borrow money."