THV Extra: When Bad News Is Good Business

You can't turn on the TV these days without hearing about the weak economy. It's plastered in newspapers and on the Web.

Shopper Stacey Toler says, "It is a ripple affect across the board."

When you buy groceries and fill up your gas tank, you're reminded of it again.

Driver Becky Carringer says, "I don't know what we are supposed to do. I guess we are going to have to cut back on food."

Prices are escalating around every turn in Central Arkansas.

"It really does cut into other things," adds Toler.

They're economic downturns with seemingly no end in sight.

Carringer explains, "I can only imagine what it is going to be like when our kids have to deal with this."

As weakness in the U.S. economy spreads, here's a thought for you: there will always be businesses whose services prosper during hard times. Don Thornton of Alert Recovery in Benton knows this well. He's been repossessing cars for nearly 50 years.

"Thornton says, "We get more work every month."

Then there's 23-year-old Paul Pakis. He's been in the pawnshop business since age 14.

Pakis explains, "Doctors, lawyers, just anybody that you can think of comes through here."

They're two opposite trades involving two men earning a living from your weak dollar, and there's plenty to go around.

"Bad judgment is the root of a lot of repossessions," says Thornton.

Thornton has six repo car lots across Arkansas.

"They were always planning on sending a payment on Friday. You know that is pretty standard," adds Thornton.

Since February, business has tripled. On average, there are 12 to 15 cars repossessed every day. Statewide, Thornton expects 3,000 by the end of the year.

He explains, "People in Chenal buy things they can't afford just like poor people do."

Some vehicles cost $30,000-$40,000. Many repossessed, Thornton says, just two months after the purchase.

"They need to think about what they're doing a little more," Thornton adds.

He adds that he's never seen quite so many motorcycles rolling in. Many of them are Harley Davidson's, and they aren't cheap. Many of them cost $20,000 a piece.

Thornton explains, "All of these go to the auction this week and by the end of next week, we'll have that full again."

At Pawnderosa Pawn Shop in Little Rock, business is booming.

"Everybody needs quick cash sometimes," explains Pakis.

People pawn golf clubs, CDs, tools, and a big trader is gold jewelry. At nearly $1,000 an ounce, it's hitting record levels.

"You know you can't go to a bank and get a $25 loan to pay your gas bill," says Pakis. "We are here for people that don't necessarily have a credit card. We can always help out people."

Pakis says with the slow economy and Arkansas payday lenders forced to shut down, that he expects business to double by the end of summer.

"Anytime the economy gets worse and people are short for cash, they need loans and that is for any loan industry. Any bank industry, any credit card company," Pakis explains.

Both men agree that their work is nothing personal. It's just business.

They know from experience, the stalling economy will eventually bounce back, and believe it or not, it's what they prefer.

"I just want it to be normal," says Thornton. "Everybody prospers from good times."

Pakis adds, "We sell, we buy, we pawn. We do whatever. So we can go with the economy. We're not going anywhere."

But economists say neither are the high prices. In fact, there's no clear forecast of when it will improve. So many Arkansans will keep struggling, while the repo car lots fill up and the pawnshop shelves get fuller.

Click on the links under the pictures for helpful tips about securing your financial future and how to raise your credit score.