What happens if I can't repay my pawn loan on time?

If you cannot repay by the due date, talk to the shop before the deadline. Many pawnbrokers allow you to extend or renew the loan by paying the interest and fees due, which restarts the loan period. State law often requires a grace period after the due date as well, but the length varies by state.

If the loan and any grace period expire without payment or renewal, the item typically becomes the shop's property and can be sold. In most cases the loss of the item settles the debt, and the shop does not pursue you further or report it to credit bureaus.

Rules on renewals, grace periods, and notices differ by state, so read your pawn ticket carefully and ask the shop to explain your options. Keeping in touch with the shop gives you the best chance of saving your item.