Loan Sharks lock families, individuals and whole nations such as
, into un-payable debt; distressing families and ultimately making them homeless. But even low waged people can repay and escape debt if the charges are fair; eliminating court cases and bad-debts for lenders. Greece
Charges from 1950 to 1990 were typically on a Base of 7.5%, quoted as "2.5% to 6% above Base" or a maximum of twice-times Base Rate; and banks made good profits.
Lenders can now borrow at Base Rate, e.g. in the
at 0.5% (half a percent). They lend on mortgages at about 5% or 10 times Base; on credit cards at 16% or 32 times; which increases to 30% or 60 times; pay-day loans are 300% to 3000% or 600 to 6,000 times Base Rate. UK
Loan charges are sandwiched and levelled at every stage of business – about 20 steps from raw materials through to consumer purchase. Capping the rate to 5% would reduce the costs at each step and final prices by 25%; beating inflation.
Only banks or the super-rich have or can buy money at 0.5% and sell it at up 6,000 times the cost. It is a privilege reserved for the 1% against the 99%. All the world’s religions and fair minded people are against such exploitation. The charges are now horribly greedy and excessive.
Ask your MP, Senator, Congressman or representative to press for a national and global 5% per annum cap on interest and charges. There is a petition on Avaaz you can sign. http://www.avaaz.org/en/petition/5_per_annum_cap_on_all_interest_rates_charges/?launchLegally capping interest on debt is the single most important reform needed for a fair society - and the easiest and cheapest to implement. Freeing millions of families from grinding debts will stimulate the economy and create growth.