Thursday, January 29, 2009

Parents Struggle to Afford School Materials

So far this January, pawnshop business in Guatemala City has increased between 20 and 30 percent. January is one of the biggest times of the year for pawn shops because this is when people need money to enroll their children in school, purchase supplies, books, uniforms, and medicines.

Pawn shops make loans on collateral unacceptable to banks and will take jewelry, household appliances, even cars. Interest rates vary from 3.5 to 4.5 percent per month. Pawn shops are not regulated by the Superintendencia de Bancos but they are regulated under the Código de Comercio y Registro Mercantil.

1 comment:

ShutterSparks / KW2P said...

I have seen this problem first-hand. The other day, my friend's 6-year old daughter came home from school with a pile of books and a bill for Q900. My friend had no idea this was coming. Fortunately she could afford it.

What's more, the books did not appear to me to be worth anything close to Q900. They were basic workbooks for a 6-year old.

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