Rely on Jews as Money Lenders if You Need Finance

June 9, 2017 · Posted in Finance 

Credit is the norm in the USA; indeed as it is in many other countries of the world. Few businesses are cash rich while the real estate market could not really exist without mortgages that allow families to buy over a long period, anything up to 30 years. The ability to buy on credit helps the economy to grow yet there are inherent problems for those who over-extend themselves and struggle to keep up with their repayments. Institutions that lend profit from their transactions as long as they assess the risks involved.

Trading in Money

It is a fairly sophisticated business these days but ‘’trading’’ in finance dates back centuries; often it was described as usury and looked down upon yet people in need of finance were always grateful to be able to get it. At one time, people saw Jews as money lenders though that is perhaps a generalization?

Commerce can only survive if there is profit and what was described as ‘’usury’’ years ago is now praised as the way that a national economy can develop and grow. No one has the exclusive right to make profit because of their ethnic background but the reputation of Jews as money lenders remains.

Consumers Need the Service

Consumers really have little concern about the source of funds as long as they can get them. Finance is a competitive sector and that is its own control mechanism in the interest rates that prevail. Individuals can research online to get the best interest rates but those will only be available to those whose applications have minimal risk. Remember that the recession was a product of credit being too easily accessible with the result that a great deal of toxic debt was created. The ‘’crash’’ had worldwide repercussions yet a few years on the atmosphere is little different. Those in search of credit can usually find it somewhere like ; it is the cost of obtaining it that varies from person to person.

Short-term Solutions

There is a section of society that is finding it difficult to meet its liabilities. That may initially have been a product of the recession or simply of poor financial management skills. Whatever the reason, those with poor credit scores are faced with the prospect of having to pay high rates of interest. It is because of the perception that they are poor credit risks and so it is this high rate or nothing.

The products involved are short-term solutions to financial problems. A loan may be only for a few days until the next pay check arrives and is provided without security being offered although the applicant must have a checking account and accept that repayment may be taken automatically on the day that the pay-check arrives. Alternatively, car title loans allow someone to borrow up to 50% of the value of their automobile for a time, rarely more than a few weeks, but the penalty for default will ultimately mean losing the car.

There has been criticism of such products as too expensive; that is similar to the charges of ‘’usury’’ that was laid at the door of Jews as money lenders centuries ago. They are just a small part of the financial sector however.

Credit Cards

Mortgages and personal loans form a much larger part and of course there are credit cards that are offering revolving credit. Users can avoid paying any interest at all if they use their cards for purchases within the month purely for convenience and then pay off their balances in full when the statement arrives. There is a proviso to that. Credit cards offer cash during the month. Those who use the facility of an ATM will pay a fee from the date the money was withdrawn until the bill is settled.

Too many people are using their cards to effectively subsidize their lifestyle; buying things on credit that they cannot afford currently and just paying a proportion of the cost at the month end. Credit card companies charge a high rate of interest on any balance remaining after a user makes his or her monthly payment. It is an expensive way of taking credit; it is far cheaper to take out a personal loan with a fixed sum being due each month for the term of the loan. The rate of interest charged will always be much cheaper than that the card companies add to balances. It even makes sense to use such a loan to pay off a balance in full.

In the USA today the level of debt per household is disturbing, especially when it is up to the individual to provide for retirement with just a small contribution coming from the Social Security System. Money lenders offer the means of organizing a household’s finance yet good financial management requires good decision making that ensures the services available are used properly.


Comments are closed.