Since the recession, more and more Americans have been turning to pawnshops to pay the rent.
For many people this may be a mistake.
Pawnshops have come under scrutiny for predatory lending practices. These shops hold onto people's valuables for three to four months, using them as a guarantee against a loan while typically charging a three to four percent interest rate. Often the valuables are worth much more than the cash loan.
For customers with bad credit and no bank account, however, pawnshops can serve as an important lifeline.
