Traverse City Record-Eagle

Residents caught in grip of failing state, national economies

June 29, 2008

Pawn shops thrive in lean times

TRAVERSE CITY -- Logan Drake's sweaty hair clung to his forehead as his mother Kristine lifted the toddler from their car parked near Ace Buyers pawn shop.

Logan's father, Shawn, popped the trunk and retrieved a rifle case. Then the family shuffled into Ace Buyers, past rows of second-hand trolling motors and used golf clubs.

Minutes later, the Buckley clan had what they came for: money for food and gas for another week.

The Drakes hocked their wedding ring set for $20 and Shawn's hunting rifle fetched $60.

It's a scene that plays out at pawn shops across the state, as grim customers haul in more expensive and treasured items, said Dan Griffith, who owns the shop on South Airport Road in Traverse City.

It's just another symptom of a failing economy and resulting plant closures, layoffs and skyrocketing energy and food prices.

"For people to give up family heirlooms, you know they have been caught in a desperate situation financially," Griffith said.

The Drakes' wedding ring set "wasn't nothing fancy," Kristine said, but the couple spent about two hours debating what to sell before heading to Traverse City. In the end, they were left with little choice, Shawn said.

"I work full time, five days a week ... and my check is spent before it's even printed," said Shawn, who makes $12.50 an hour as a grounds crewman at Munson Medical Center in Traverse City.

"She works at a bar in Buckley and business is so bad he cut her down to two days a week. I just don't make enough to cover the rent, utilities, gas and everything."

It was the family's first trip to Ace Buyers, a last-minute effort to keep themselves afloat amid a mounding pile of past-due bills and monthly utility shut-off notices.

Kristine, who walks a few blocks to work, is looking for another job while the couple tries to fend off another trip to the pawn shop. They already know, though, that they won't be able to pay July's rent.

"It's getting to the point where you're trying to figure out what bills are more important at the time. We let one bill go to pay another," Kristine said. "We try to talk to the people we owe stuff to and finagle it. I am trying to find (another job), but we can only afford one vehicle with the gas prices."

"We are just trying to ... hold off an eviction notice," she said.

The Drakes sold their items outright. It's also common for repeat customers to receive cash for items, then return to the store on payday to buy them back, a service the store offers for roughly 25 percent interest each month.

Griffith's employees also are fielding more calls from residents who are leaving Michigan and want to sell snowblowers, lawn mowers, whatever they don't need.

"You continuously hear people have lost their jobs and are leaving the state. That's often the case," Griffith said as he leaned against a display case crammed with cameras and other assorted electronics.

Behind him, a row of weathered rifles and shotguns lined the wall.

"We do have regulars, and for them we're their financial institution. More than anything, it's needing $20, $30, $40 or whatever can get them through to their next paycheck, and the assurance that they can redeem it," he said.

Florescent orange tags from previous pawn shop trips dangled from Dennis Winek's two small amplifiers as the Traverse City resident hauled them and his red electric guitar into Ace Buyers.

It was the third time he cashed them in since he went on unpaid medical leave last August.

Winek and his wife support five children, but back pain forced the former nursing assistant to seek a new line of work. He plans to attend Northwestern Michigan College in the fall.

In the meantime, Winek said, his financial situation has put a new perspective on his priorities.

"This is helping with a utility bill. They are just extra things that I can do without," Winek said, describing his experience as "mildly depressing."

"When you go from a two-income family, together me and my wife would do $35,000 to $40,000, now you drop that in half. It's ... humbling."

Lori Thompson knows that emotion well, though she hardly has time to dwell on her misfortunes.

Thompson, a state Community of Mental Health patient, was a single mother for 15 years before she suffered a nervous breakdown and subsequently was diagnosed with bipolar disorder, she said.

A college graduate with an accounting degree, the Traverse City woman receives a housing voucher and food allowance from the state as long as she isn't working. But she's forced to scramble each month to come up with creative ways to cover her utility bills.

"Neighbors give me their pop cans to turn in to help with the bills. I might see if I can get a baby-sitting job or something I don't have to claim," Thompson said.

Thompson's daughter drove her to Ace Buyers to hawk a laundry basket full of electronics, DVDs, jewelry and other items.

She left without selling any of the goods when she wasn't offered what she believed they were worth.

Thompson wants to work despite her disability, and plans to file her third and final appeal to the state for a permit to do so soon, she said.

And, like most people who stopped at Ace Buyers to pawn their possessions, she remains optimistic her financial struggles are only temporary.

"I can probably work a gas station or Burger King job," she said.

Text Only
  • Locals work multiple jobs making ends meet

    Elyse Boyd darts between tables and the cook's grill, delivers hot plates of breakfast to hungry diners, then pauses to take a sip of Mountain Dew behind the counter. It's a busy life for Boyd, 21, who works four jobs to help support her family, including her husband and 3-year-old daughter.

    Continued ...
    Dec 16, 2008 10:08 am 2 Photos
  • Fixed-income seniors struggle with budgets

    There was a time when Pat and Bob Pierce had a money cushion, a few dollars left over once the bills were stamped and sent. Those days are gone.

    Continued ...
    Dec 15, 2008 9:32 am 1 Photo
  • Fighting to stay afloat during recession

    Aza Drielts-Davis would work 60 hours a week if she could. But no one's offering that many hours these days, so she logs about 40 between shifts at Admiral Discount Tobacco and as a receptionist at Advanced Computer Solutions in Traverse City.

    Continued ...
    Dec 14, 2008 10:31 am 2 Photos
  • Mother can't work, so children step up

    Teenagers Alisha and Nicole Bowles are expert bargain hunters; they frequently clip coupons and shop at discount retailers and secondhand stores for everything from clothing to Christmas gifts. "Young girls at their age want their own money," their mother, Barb Vickers, said. "But they want to help."

    Continued ...
    Updated Dec 14, 2008 10:11 am 2 Photos
  • School is 'first line of defense'

    Children are not immune to the effects of an economic recession, even when parents try to shield them from discussions on family finances, an elementary school social worker said.

    Continued ...
    Updated Dec 14, 2008 10:11 am
  • Sunday, August 24, 2008
  • Families stretch back-to-school dollars

    Instead of extras, Heather Pollington's daughters will return to school next week with just the basics. Some new supplies, a pair of shoes, jeans and a few shirts. There isn't room for much else.

    Continued ...
    Aug 24, 2008 9:52 am 1 Photo
  • Tuesday, July 1, 2008
  • Housing slump, economy keeps shelter busy

    Ken Homa can see the region's tattered economy wearing on the people his agency tries to assist during tough times.

    Continued ...
    Jul 1, 2008 10:02 am
  • Homeless dream of better lives

    Sometimes she wakes in the middle of the night and worries she's not a good mother. She listens as her children sleep nearby, their rhythmic breathing a small comfort, a hedge against anxiety and fear that threaten to overwhelm her. She listens to the night sounds so close, just outside the thin walls of a tent she and her children -- Mary, 17, Edward, 12, and Aimee, 4 -- call home.

    Continued ...
    Jul 1, 2008 9:53 am 7 Photos
  • Monday, June 30, 2008
  • Business 'doing whatever we can'

    The coolers inside John Rosa's liquor store and pizzeria are half empty. It's too expensive to restock. Outside, gas pumps are shut off, and stand as weathered remnants of a bygone era. For decades, Rosa's family made a living selling gas and repairing cars. That was then.

    Continued ...
    Jun 30, 2008 10:02 am 2 Photos
  • <a href="http://photos.record-eagle.com/gallery/5292540_BfnGM">Photo Story: Getting by at Bud's</a>

    Continued ...
    Jun 30, 2008 10:02 am 1 Photo
  • Teens struggle to find summer work

    Leah Ferguson worked as a dishwasher at a local American Legion Post, then for a catering business and finally made restaurant stops at Mustard's and Trattoria Stella in Traverse City. The recent Traverse City Central grad has plenty of service industry experience, but now struggles to find a job.

    Continued ...
    Jun 30, 2008 10:01 am 2 Photos
  • More people leaving the state

    Bob Thalman is considering leaving Michigan to begin his career. He graduated in May from Cedarville University in Ohio with a degree in English and a passion for libraries. He has worked at the Traverse Area District Library since 2002, a job he holds today. But Thalman, 22, said Ohio is more "optimistic" than Michigan about library careers.

    Continued ...
    Jun 30, 2008 10:00 am 1 Photo
  • Sunday, June 29, 2008
  • Hard times force residents to change ways

    This story begins a three-day Record-Eagle series examines the lives of those caught in the grip of the failing state and national economies, and offers snapshot examples of how your friends, family, neighbors, and communities cope during bad times.

    Continued ...
    Jun 29, 2008 11:09 am 3 Photos
  • Times are tough in tiny town of Honor

    A neighbor's worn-out swing set was headed for the dump before Becky Link salvaged it for her 4-year-old daughter, Riley. Link, of Honor, couldn't afford such a luxury. She makes $7.50 an hour at JC Penny in Traverse City, but after spending $10 in gas to get there and $20 for daycare, she leaves with only $30 after each eight-hour shift.

    Continued ...
    Jun 29, 2008 11:08 am 3 Photos
  • Increased poaching for food 'possible'

    One northern Michigan man acknowledges he's guilty of the crime of poaching. But he said he illegally killed a deer only because of his lousy financial situation. "It's feeding your family," he said.

    Continued ...
    Jun 29, 2008 11:08 am
  • Some put away keys, turn to buses, scooters

    Jan Nickerson doesn't mind walking to the Kingsley post office each day to make her public transit bus connection. The money she saves by riding instead of driving steered her to the bus nearly two years ago.

    Continued ...
    Jun 29, 2008 11:08 am
  • Extra stops worth it to save on meal money

    Madge Smith and her friend Barb Allen wheeled into the parking lot at Purchases Sales Company in Gaylord for just one thing: a gallon of milk. The friends from Waters stop by the wholesale milk and ice cream distributing company each week for bargains on dairy products.

    Continued ...
    Jun 29, 2008 11:07 am 1 Photo
  • BATA driver: 'I've been blessed'

    Doris Morgan may have a lot on her plate, but she's buoyed by the "angels on my shoulders." Morgan, 53, drives a bus for the Bay Area Transportation Authority and, like many other northern Michigan residents, feels the acute pinch of the state's economic woes. She works full time, but at $12 per hour struggles to make a decent living. She's not complaining, though.

    Continued ...
    Jun 29, 2008 11:07 am
  • Hundreds in region face foreclosure

    Susan Forcier loved the 10-acre, Hayes Township spread she called home for nearly five years. Over the past year she watched variable interest rates push her house payment to $1,500 a month, almost triple the previous payment, and late fees and penalties pulled her under.

    Continued ...
    Jun 29, 2008 11:06 am 2 Photos