I hate to admit it, but there's a much better, much more fully documented and informed article by Thomas Storck in The Distributist Review. Go read that one.
Most of us know that the key to successfully managing our money is to avoid spending more than we earn in a month. While certain debts can never be cleared because we’re paying for ongoing services, we know to avoid spending on credit and obtaining loans as much as possible.
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Most of us know that the key to successfully managing our money is to avoid spending more than we earn in a month. While certain debts can never be cleared because we’re paying for ongoing services, we know to avoid spending on credit and obtaining loans as much as possible.
Paradoxically — not to say ironically — we also know the only way to establish a good credit history is to obtain loans and pay them off on time. Since your credit report is, for all intents and purposes, your public reputation, and is becoming essential to maintain in order to get good jobs and decent apartments, more than ever there’s a social incentive to spend modest amounts on credit. This is without considering Corporate America’s constant push for you to buy, buy, BUY a bunch of crap you don’t really need so you can keep the economy expanding (and money flowing into investors’ hands).
As I’ve written before, debt as an economic engine eventually leads to an unsustainable imbalance of wealth. But moreover, despite its normalization, we can’t help but feel that the only difference between the multi-billion-dollar national lender and the street-corner loan shark is that the former pays some attention to federal regulations. Put differently, we feel that “predatory lending” is a redundant phrase.
But is it immoral? Didn’t the Catholic Church use to teach that all lending was de facto a sin? Traditionalists will insist that the answer is “yes”.




