The cold economic data does not even begin to tell the human stories behind the numbers. So, I decided to visit a few pawnshops in South East England to see what is happening. I spoke to the shop managers, and I stood outside to speak to people coming into the shops.

People go to pawnshops to pledge items of value and get some cash. Some are reasonably well-off and need immediate cash, but don't have the kind of security that a bank would accept. So they turn to pawnbrokers. Many can't get bank loans and overdrafts because of low income or paucity of acceptable collateral.

Depending upon the amounts and duration of the loan or agreement, the rate of interest varies. One pawnbroker gave an example - "Amount of credit £100; duration of agreement 6 months; rate of interest 119.9% (fixed) p.a. Total amount payable: £159.94 in one instalment", and another mentioned a rate of 155.8 %APR. The Bank of England base rate is 1.75%. Each hike in the base rate has a knock-on effect on the interest rate charged by pawnbrokers. ...