It didn’t take long for the lure of free government money to start taking its toll in the US. I’m already receiving reports from pawnbrokers around the United States who are experiencing an uptick in their pawn loan activity from new customers who drive up to the pawn shop in… you guessed it, a brand-new car. Along with a brand-new payment they had not budgeted for.

Bear in mind, these new pawn loan customers traded in their “paid for” clunker solely because of a government run program doling out taxpayer money, billions in taxpayer money, to induce these unsuspecting customers into an unplanned large purchase strapping them with yet more debt and little regard to the ability to make the monthly payment for the next several years.

If this sounds familiar to you, it should. This type of lending activity in the US is at least partially to blame for our current credit crisis, mortgage bust, and the real estate bubble exploding like a cannon. Will pawnbrokers be able to keep these new car consumers off the repossession list of the lenders? Time will tell, it remains to be seen. But at least for now, the pawnbroking industry will keep these cash for clunkers recipients driving instead of staring at their empty driveway wishing they still had the keys to their paid for clunker.