Thai second-hand stores experiencing surge in demand before academic year starts
Strapped parents, in a pinch for cash to purchase their kids' school uniforms and necessities for the upcoming term, are storming the doors of pawn shops nationwide. These cash-hungry establishments are stockpiling reserves in anticipation of the brisk business they'll see as the new school year approaches.
With May 16 slated for the start of the new semester, parents are scrambling for cash to invest in their children's education. Pawn shops based in Nakhon Ratchasima, for example, have no less than 300 million baht stored in three branches and are even offering reduced interest rates to help out the struggling parents.
The pawn shops managed by municipalities and the private sector in other provinces have doubled their cash reserves too, with a municipality-run shop in Yala holding 100 million baht in lieu of increased demand. Charoonrat Lamrassamee, the assistant manager of the Yala shop, predicts a surge in visitors ahead of the school year's beginning.
In Nakhon Ratchasima, the storeroom of a second-branch shop is brimming with an assortment of items, large and small, that have been pledged as collateral—from golden-framed amulets to gas cylinders, refrigerators, and washing machines.
Recently, a man in Nonthaburi drove to five pawn shops with a 40-inch TV, only to be turned away due to lack of space and other reasons. In desperation, he sought a loan from a loan shark when he needed 1,000 baht to settle tuition fees for his five-year-old nephew.
He suggested all pawn shops should display signs stating they do not accept TVs as collateral. The man's plight underscores the challenges some parents face when they lack alternative means of acquiring immediate funds for their children's education.
It's worth noting that parents in other parts of the world are likewise dealing with similar financial hurdles, frequently relying on payday lenders, check cashers, and other alternative financial services—even if their fees are often steep. This trend, most notably apparent in Thailand, can be traced back to the lack of accessible, affordable credit options for families, coupled with those urgent, back-to-school costs.
Parents, seeking funds for their children's education-and-self-development, are turning to personal-finance options like pawn shops. Recognizing the increased demand, these establishments are enhancing their reserves, offering reduced interest rates for struggling families, as seen in Nakhon Ratchasima and Yala. Learners worldwide face similar financial challenges, resorting to alternative services despite high fees, a trend linked to limited, affordable credit options for families and the urgent back-to-school costs.
