Pledge / buy back

pawnshop Pledging and buying back products is very popular in the United States, but less common in the New York, just check out all the reality series about pawnshops in America.
Jewelry or electronics are often returned (pledged) and these products are then stored in the pawnshop. In return you will receive a cash amount.

As soon as you have enough money again, you can pick up the product again for a higher amount than the amount received. In principle, therefore, the loan amount received and the interest on this loan amount.

The product must be collected within a specified period of time, otherwise you will lose title to the product / good and the pawnshop will sell the product.

The advantage of a pledge loan is that you cannot get into debt, but you can lose assets in return.
The interest rate on the loan amount, on the other hand, is very high.