What Items Yucatán Residents Pawn Most in January

Mérida, Yucatán — At the start of the year, commonly known as the “January financial squeeze,” Calle 69 in downtown Mérida begins to see a parade of people with various items seeking greater liquidity, as this street in the Yucatecan capital concentrates most of the pawn shops in the area.

According to testimonies from the managers of these pawn shops, this start of the year has been characterized by an increase of up to 30% in the influx of people coming to pawn items, as well as a clear trend toward certain objects that are more accessible and easier to leave as immediate financial collateral.

What Are the Most Pawned Items During the January Squeeze?

One of the items that most frequently arrive at pawn shops during January are cell phones, as the employees themselves point out, they are objects that most people have “at hand,” which makes it easier to use them as a quick way to obtain cash.

“Their cell phone, which is what most people have at hand or even tools too, but mostly it’s the cell phone they pawn, both cell phones and tools are what they bring the most.”

Arturo Nuño – Pawn Shop Manager

Alongside cell phones, tools also rank among the most pawned goods, especially in areas where activities related to trades and manual work predominate.

On the other hand, Claylie Rasgado, a store manager, pointed out that in previous years, gold and silver had a more constant presence; however, currently these metals have been displaced by everyday use items, reflecting a change in the pawn market and in the immediate needs of the population.

“Well, the market has changed a lot now, before we normally saw more flow of metal or gold or silver. Now everyone goes for cell phones.”

Claylie Rasgado – Pawn Shop Manager

Has the Influx of People Pawning in January Increased in Mérida?

According to the managers of these pawn shops, during this January there has been an approximate 30% increase in the influx of people coming to pawn compared to other periods.

This increase is mainly observed in the number of people seeking to leave an item as collateral, more than in those coming to recover their articles.

Although the behavior is not identical in all pawn shops, in general greater activity related to new pawns is reported, which coincides with the start of the year and with the need to cover expenses following the December holiday season.

What Is the Difference Between Pawning and Item Recovery This Season?

Another aspect that characterizes the January squeeze in Mérida is the decrease in the recovery of pawned items. While in other years, toward the end of December and beginning of January, it was common for people to come to redeem their pawns thanks to greater liquidity.

This year the behavior has been different, as instead of withdrawing their goods, many clients opt to pay only the interest to keep their items in storage, or they make new pawns.

This has caused the movement in pawn shops to concentrate more on the intake of objects than on their exit, thus consolidating an increase in pawning activity during January.

“People don’t come more to retrieve in these seasons, let’s say, between December and January, they normally start to recover, well, there starts to be more cash flow, but not this year, this year it has been the opposite, they only come to pay interest, but almost no one recovers.”

Claylie Rasgado – Pawn Shop Manager

Overall, the January squeeze in Mérida is reflected in a greater number of people resorting to pawning as an immediate financing alternative, with an increase of up to 30 percent in influx and with a clear preference for everyday use objects that can quickly be converted into cash.