History of Money

In the earliest of times man probably fended for himself. He hunted and fished, and harvested as opportunity presented itself. Man may have been an individual in the beginning but it is clear that as some time he became a social animal. Unity gave strength, and this, in turn, provided protection. As time passed it was probably discovered that some people were skilled in special areas, and that it was then that the tribal leader decided it was more beneficial to exploit the abilities of the talented. It is probably about this time that agriculture, supported by some understanding of the principles of engineering and irrigation, began to appear.

So then there were enough crops to augment the bounty brought in by the hunters and the society became self-sustaining. So all went along well as the society had all that it needed to survive, and perhaps even enough to support growth.

But did they have everything they wanted? Could they get everything they needed?

Debtor Diligence and Reliability:Probably the biggest factor in deciding whether to give or withhold credit is the concept of confidence. If you don’t believe in the person asking for the loan, don’t feel confident that his situation is stable and will continue to remain so for the lifetime of the loan, or if the economical/political environment itself is uncertain you will most likely want to keep your wealth as closely guarded as you can in order too meet, and then fide out, and hard times that appear to be likely on the horizon. Read more

Credit and Debt Basics

From the very beginning of this great nation there was a strong fiber of credit running through. The legendary Pilgrims were on a periodic payment plan and there have always been, sales made where the farmers and grocers give people their goods for part payment now on the promise of the buyer to pay the balance of the purchase price at some later time. And American settlers just used the age-old system found everywhere where debtors would pay back the local grocers as they could and the farmers would pay back debts incurred during the beginning of the growing season at the time of the fall harvest. The reason sellers extended credit is because merchants had to make it as easy as they could to encourage purchasing. Many farmers, craftsmen and professionals found that, even aside from competitive pressures, they simply could not last in their trade without extending credit and the providers of expensive items would have to close up if they demanded full purchase price at the time of tender.

The idea of credit is so common today that we take for granted it will always be there and that everyone knows what it means. So if someone were to come up and ask you what the term “credit” meant, what would you say? Would you define it by the form it was in; you know, like credit cards, checks, etc.? Or would you define it by purpose: payday advance loan, home improvement or other? There are many ways to think of credit, but if you want to get right to the core you might as well think of it as a way to get something, a method of exchange, that let’s you get what you want, to get the product of someone else’s labor, without having to use money.

There are many reasons we need credit. Many of the reasons we need credit will occur to most of us at one time or another over the course of our lives.

When we were children we used to be able to get many of the things that we wanted through the generosity of family and friends. As kids we were used to the idea of getting the things that we wanted on our birthdays. Certain holidays have become cultural mainstays and that condition the child to expect gift-getting. On Christmas, for instance, Santa Claus is expected to give children the things that they want at no investment. The Tooth Fairy is expected to leave cash beneath a child’s pillow as they lose their baby teeth.

These quaint traditions are heart warming and cute, but they do not duplicate real-world conditions very accurately. (Unless, of course, one looks at the gift giving holidays, particularly at the spate of Christmas season holidays, from the perspective of the gift purchasing adult.)

Many of us have our first experience with the notion of credit during our high school years. It is about this time that the youth will find themselves wanting something, it was usually sports equipment or a bicycle in the old days- that is beyond their means to purchase at the time. It is at this time that many get a job so they can save up the money to make the purchase. The jobs vary from formal employment at a burger joint, or some such foolishness, to informally contracted tasks such as yard work or pool cleaning.

Then there are those who use this as their first opportunity to venture into the world of credit. They will make a deal with the seller, promising to pay the dealer a certain amount of money every week or so in exchange for possession and use of the item now. And these arrangements are particularly attractive to the seller when the item sold will be used to generate pay that can be used to meet the periodic payments. (You will note that the paperboy always had a bicycle; and that he used that bike to help him in his deliveries.)

For others the first look at the world of credit would come with high school graduation and the attendance of college. Few high school graduates can meet their complete costs of tuition, books, room, and board and associated living expenses from the first day of college through their graduation. The student loan program is the hero that comes to their rescue; providing them the principal funding to meet tuition and some associated expenses on a payment plan that suspends their duties until sometime after they’re finished with their collegiate studies.

Those high school graduates who elect to go straight into the job market after they finish school are usually no less likely to encounter the need for credit as well. Many will need transportation as a means to get to and from work, or as part of the equipment for work. If the individual wishes to buy a new car or truck today the impressive sticker prices will almost surely require that they finance the purchase through a money lender. This lender may be the
seller themselves or some third party lending agency, such as a bank, but the nuts and bolts of the arrangement will be the present lending of purchase value in exchange for the promise of periodic payment.

After graduation, or after some time in the workplace, the individual may want to make another sizeable purchase; that of a family home. This is perhaps the cornerstone of the American Dream and one of the reasons we are so proud of our wonderful way of life. Nowhere in the world can so many people realize the dream of owning their own homestead and be free to live their lives free and with dignity. You expect to own a home someday, right?

Well just look at the bloated housing market- the prices climbing steeply to ever higher levels virtually every day- mean that meeting your dream is going to cost you more now that it ever has, or probably ever will, in history. Guess what that means? Yup, you’re going to need credit- a considerable amount over a significant period of time, most likely.

In all these cases the buyer has chosen, instead of waiting to have worked the hours necessary to accumulate the needed earnings the seller needs, to promise a set portion of future labor and earnings as a guarantee so you can get the item now. (Your history of how you pay off obligations is your “credit rating” – but more on that later.)

If credit is the stated promise to make good on the value loaned than we can think of debt as the obligation created from formation of a credit transaction. It is the full amount that the debtor is obliged to pay back on account of this relationship.

Now it should not be so surprising that the levels of credit and debt are often unequal. Think about it for a moment and you will see why this is true.

If you purchase something like land, for instance, with debt and it rises in value, the present value will be more than the debt. The buyer will then have received extra value as a result of the purchase.

A similar thing can happen on the seller’s side. A seller who is financing the purchase of his product has a strong reason for giving you credit- especially if the item he is selling is expensive. An owner selling their own home or an auto salesman can probably be pretty certain that a large majority of their clients will not be able to pay cash for the purchase. In these cases some sellers will be ready to provide some sort of financing for buyers who don’t have the full purchase price up front.

But many sellers don’t want to go into the financing business. Their reasons vary, form not wanting to undertake financing operations as a part of their business to lack of value to extend the desired consumer credit to the reluctance to take the risk of writing to see if the buyer will be able to perform payments as promised over time.

Credit and Debt

The idea of credit is so common today that we take for granted it will always be there and that everyone knows what it means. So if someone were to come up and ask you what the term “credit” meant, what would you say? Would you define it by the form it was in; you know, like credit cards, checks, etc.? Or would you define it by purpose: payday advance loan, home improvement or other?There are many ways to think of credit, but if you want to get right to the core you might as well think of it as a way to get something, a method of exchange, that let’s you get what you want- to get the product of someone else’s labor, without having to use money. Read more

Quick Cash Advance

Emergencies pop up every now and then. Being low on cash doesn’t always happen but when an emergency and a dip in cash occur at the same time it is a disaster.

A quick cash advance is the perfect blockade in preventing a disaster. It is impossible to stop emergencies but it is easy for you to get a quick cash advance.

The key word is “quick”. There is no time to waste when there’s an emergency. Getting you the money in your hands fast is what a quick cash advance is all about.