Is charging interest Christian?

[deb1]

Why would anybody be in business and stay afloat if they didn’t charge interest? The Central Bank of your country sets the interest rate for a reason.

Also, for tax purposes, if you lend someone money, you basically HAVE to charge them interest. Usually 2 below prime is considered applicable in the Canadian Income Tax Act. The lender reports the interest earned and the borrower may deduct this interest if it has gone towards an investment etc…

It would be foolish to not charge interest.

I agree that excessive rates are sinful though. Places like moneymart, Money Tree and Payday loan, etc… should be outlawed in my opinion. They harp on the low income and are as good as loan sharks!

Yes, and people need to get educated about what happens if they are late on payments. I was late on a payement to my credit card. My goodness the fees that I had to pay were insane!! I can’t imagine what happens to people who get behind for more then one payment and then try to catch up. The annoying part is that except for this one payment, I have always paid extra on my bills. Yet, it didn’t matter. One missed payment and I was looking at some serious additional fees.

Just for the record, I am up to date on all my bills now.

High usury fees are bad, but people have to be told to avoid debt. I have friends who bragg about their material things yet they are so deep in debt that it is frightening.

 

[puzzleannie]

I know our Muslim counterparts forbid muslims from “usury” or excessive interest rates and was wondering what the catholic stance is on this issue.

Thanks!
Ben

pax et bonum

it must not prevent them from conducting business in the banking and lending industries, since plenty of Muslims here participate in both, as do Catholics and Jews, all of whom prohibit excessive interest rates, the definition of usury. Your dilemma comes in defining excessive. If the banking regulations are followed there is not sin.

 

[Sina]

It’s equally foolish to give money away to beggars, love those who hate us, etc. Yet we’re commanded to do those things too.

But there is a difference (from a business perspective) between a Charity, Non Profit, and a Business. Hence the tax structures.

Ok… so maybe it is not foolish for someone to set up a non-profit that lends money to people in real need.

 

[Renton405]

Charging usary is an example of our fallen nature to greed. In my opinion I think all types of usary is wrong like the early theologians and ECF say. There are so many companys that use really awful techniques to squeeze as much as they can out of their customers, I happen to be one of the victims. I honestly can not look at these companys and think usary is not in the least bit sinful. It hurts familys greatly…