If you need to borrow less than $500 and are wondering whether you should apply for a payday loan or just pawn one of your valuables, you have to weigh your options. Pawn shops aren’t going to give you very much for your valuable items because they have to  make a profit. That means if you need $500 or less, you’ll need an item that’s at least $1200-$1500. In addition, you have to pay back interest fees and more. Also, the loan lasts anywhere from 30 to 90 days.

Payday loans carry extremely high interest rates. You may be in debt anywhere from 6 months to a year, so keep that in mind as well. If you’re unable to pay, they may take legal action against you by garnishing your check. Neither one is an ideal option, but it’s important that you’re aware of what you’re getting yourself into.