Later today I will head away for the annual meeting of Bay of Quinte Conference, our regional gathering which will span the weekend. It is in Pembroke this year, so I will need to take my insect repellent because of the blackflies and mosquitoes.
Speaking of blood suckers, there is legislation afoot in both Canada and the United States to make sure consumers are adequately informed about the interest charged for the use of credit cards. In these tough economic times there is a greater awareness of the onerous debt accumulated by card users. We have credit cards but are considered "deadbeats" by the banks because we pay off our balance each month before interest accrues. Unfortunately many people choose to live with the high interest rates or are forced to do so by circumstances.
Lending money for financial gain was actually considered a sin by the medieval church, which was why Jews were allowed to become bankers -- the perverse logic was that they were going to hell anyway. Being the agents of oppressive debt was considered to be morally reprehensible. Now it is an accepted practice. Some credit card companies are saying that if they are limited by more regulations they may start charging their deadbeat customers (it is actually their term) yearly fees to compensate.
I think of the phrase "neither a borrower nor a lender be" which is often attributed to Shakespeare's Hamlet but originates in the book of Proverbs. Where would we be without borrowing and lending?
What do you think? Should governments get involved, or is it up to us to use common sense? Is it a sin to charge exhorbitant rates of interest?
I'll be back in a few days, but I would still like to hear your opinion.
3 comments:
I guess in our house hold we are "deadbeats" too. Why is it the honest, law abiding, responsible ones are always being sucked dry? Guess I should rack up my credit cards and just pay the interest on them, there is no incentive to do otherwise if "deadbeats" are giong to be charged! They need to be going after those who haven't paid their bills and give credit to those of us who do! My two cents, or will that now be four cents?
Enjoy the blackflies, just remember without them we wouldn't have blueberries as they pollinate the wild blueberries!
As a former banker, I saw many instances of folks in such stressful situations over debt. Banks are known to be relatively conservative lenders in the credit world. We always knew though that when we declined loans based on guidelines around percentage of income going to payments or poor past credit that there would be somebody(finance companies/etc) waiting in the wings to approve such loans that we had declined.They wouold grant these loans at very high rates because of the risk they were taking on. And much as it made the customer happy at the time, it really was as no favour to the customer who they were putting into "risk" with such high debt loads. As with most businesses the top sales people are rewarded (so yes, borrow lots) but in the business of credit it sure can be at the expense of the naive consumer in a material world. That being said though.....I often think of my Grandpa who wouldn't buy a house til he could pay cash, which he did in his fifties.....I don't think many of today's generation, myself included, have that acceptance of delayed gratification or self control.
I agree Nancy, that we shouldn't be penalized. Vendors who take credit cards must pay a percentage to the companies already.
Thanks for this observation Laura. I'm just back from conference and three of those ordained were former bankers. Replacing the little horns with a halo?...
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