Don't write off your local pawn shops. Occasionally you can find a reasonable guitar or amp there at an acceptable price. A suggestion for the AMP would be, to purchase as has been recommended, to give you the headroom to play in a band, but, also invest in some good headphones and use them to practice at home.
MY current practice setup is a Roland Cube 30 bass amp (I have a bigger Bass Amp that I use) which allows me to plug in my Music player (usually laptop) and Guitar (Either Bass or Electric) and Headphones. I can then play as long, or a loud as I like without annoying the other occupants of my home.
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Maton CE60D
Ibanez Blazer
Washburn Taurus T25NMK
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