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BECOME A CREDIT AND DEBT MANAGEMENT MASTER
Did money breed capitalism or did capitalism breed money?
I venture to guess that no one knows the complete or accurate answer.
No matter what the answer above may be, we are aware that Credit and therefore
Debt has been a facet of the civilizations for about as long as we have used money as a means of financial exchanges.
We’ve probably used money as a means of financial exchange for about, or at least 10,000 years.
But even from the beginning of this means of financial exchange creditors were concerned with,
Debt and credit problems and solutions.
In most archeological studies of the remnants of what was once clay tablets.
Many contain detailed records of past credit transactions.
These artifacts that date back centuries in the past were found in what is modern day IRAQ and IRAN.
These areas of the world are considered by most scholars as the beginning and the cradle of today’s civilization.
And, yes even back then, society had fostered a debt management collections system.
In the past days of our civilized beginning, individuals bartered and traded mostly in commodities.
They bartered with such wares as olive oil, grain, cattle, goats, sheep, and yes a form of money.
This form of money called shekels was freely used for the purchase of the commodities.
The people of yesterday set up and also used shekels as a means of paying for an exchange of goods.
They had a form of shekel leverage as the people of the society borrowed among themselves.
This evolved into our country’s current debt-based monetary system.
The antiquated debt/management system appears to have had an
established interest rate of about 30 percent or more.
The creditor of old also set up penalties for the non-payment of debt, many which turned to out to be rather severe.
No or late payment of debt could mean working for the creditor as a slave until the debt was resolved.
Sometimes, depending on the creditor, the creditor might also demand that a debtor’s son or daughter become
an indentured slave for a period of years.
DEBT ENSLAVEMENT ENDED BUT DEBT IMPRISONMENT DID NOT
After the period where enslavement was the prices one paid for debt, especially
the lack of payment of debt.
we became more enlightened?
We now began only to imprisoned those dastardly individuals who could not or would not pay their debts.
Most of those individuals imprisoned for debt problems would be labeled in
the category of COULD NOT PAY.
Since most debtors labored for little plus many times the boss and his company store
had placed a heavy debt burden on them.
IN OUR MORE TOLERANT TIMES TODAY,
We no longer enslave or imprison people because of debt.
But debtors who fall behind in their payments are still viewed
by society as less than a good citizen.
Don’t believe it? Owe someone or an organization money and they can harass you, threaten you, take you to court
and most times they will prevail in the United Sates’s business leaning courts.
A Lack of payment of owed debt results in bad credit and is frowned upon
by most of human society.
This debt slavery that modern mankind is subject to, is subtle and insidious.
The creditor-debtor parts of society began to spread quite profusely, taking mammoth leaps in
Europe and in the British Isles during the Roman Empire era.
This concept of a debtor society continued in to the medieval society.
During this period, the literal chains of slavery were replaced by debt as a means of keeping the debtor
slaves in place and serving their creditor masters.
I read an article once about this phenomenon in the history of feudal England.
It appeared to occur about the same time as the birth of Christ.
Before the feudal system evolved all royalty and leaders in England and other parts of the world had to pay
soldiers (knights) to provide protection for the Royals’ or the rulers’ particular fiefdom,
to wage wars, and to guard their slaves.
Slaves who because of losing a war, failure to pay a debt, or because of other debt issues, were forced
to build the more privileged folks’ castles and work their fields, to mostly pay off debt.
Because of unsecured debt consolidation loans, most were also made to fight their owner’s wars.
This was the emergence of real debtor slavery.
But soon the Royals and other Leaders in the world thought up a better plan.
They thought why keep an expensive standing army, it would be better to free the slaves but control the situation, by selling the slaves Plots of land on credit.
The former slaves would be forced to work, and, by law, would be forced to work and give the former slave owner, now land owner, most of their crop as payment of their debt.
The landowner believed this strategy would provide control of the former slave for years.
The Free THE Slave Plan that Evolved was Beautiful and Crafty.
The plan was developed to use credit and debt management as a means to control the former slaves.
Credence was given to paying for the standing army by freeing the slave, but use
a tax code to force the former slaves to begin to pay taxes on the mortgaged land, just as we do today.
These former slaves also were required to supplement the landowner’s
(creditor’s) army by the way of the draft.
These brilliant credit and debt ideas are still in existence today.
Now the governments began to organize and form around the idea that the ruling government with debt management
instruments no longer had to pay soldiers, or waste time guarding slaves who were constantly attempting to escape anyway.
The sharecroppers (land debtors) would now because of the impact of credit and debt on them become
loyal subjects because they now had a vested interest in defending their debt-ridden property.
The creditor (property owners) only paid the sharecropper enough harvest to feed theirselves, and their family,
pay their annual debt and taxes, and have enough funds for next years crop.
The debt situation was structured so that the Freemen could pay their annual
credit bill for their plot of land, their taxes, but never enough to become wealthy.
In those days, debt free programs were non-existent.
These land owners received a pleasant surprise, these serfs now had a greater incentive in producing more harvest
both to feed themselves, their families, and to, at all cost, avoid losing their land for non-payment of their debt
(mortgage) or property taxes, were actually working harder and producing
more as serfs than they had produced as slaves.
These owners and rulers, as a result, became richer and richer.
Unfortunately this good fortune did not get to the debtors, since most times their financial situation became worse.
They often became so budened with debt that they figuratively became slave like to their creditors.
This is how the basic economic system called capitalism was born.
Does the above formula sound familiar?
The formula devised above has only been expanded in our modern times.
It now covers most every aspect of human civilization and its existence.
Economically not much has changed from the feudal times
to our alleged modern times.
The form of capitalism in most of the modern World and in the modern USA has not changed
the credit and debt formula very much.
The centuries have passed, fiefdoms became kingdoms, kingdoms have now become nations, however, the old system of
having citizens with perceived freedom, but laden down with debt is still much the norm today.
Credit and debt throughout the centuries adapted and evolved to represent what it is today.
Both credit and debt have the same negative offshoots as in ancient times;
too many people with bad credit and mortgages.
OUR NATIONAL DEBT HISTORY
The wage replaced the sharecropper’s portion of the harvest, and, many workers were
now free to move anywhere within the borders of their nation.
The citizen also had the right to rent his home or to use debt to buy (mortgage) property.
Those workers who preferred to trade their time for money, and not in harvest or grain,
became the modern industrial laborer.
Man next evolved a worldwide system of money, credit, creditworthiness, and debt management services.
This sysytem was the cause of many resulting debt issues, and the advent of our present credit-debt-based monetary system,
and the ever evolving evolving debt collectors and debt consolidation companies.
With the advent of money which replaced the sharecropper’s grain as a means of payment, financial things appeared
to change but not substantially.
True, the wage replaced the harvest portion used for the worker payment, workers now could pay their debts and
live fairly freely by trading their time for this new stuff of a means of exchange, called money.
The International Feudal System Officially Died with the Beginning
of the Wage and Time Labor System.
However, an onerous rights robbing form of the old feudal and slavery system thrived for centuries
and well into the 20th century in the USA south.
After the end of the mostly worldwide feudal system, the system evolved but did not change emphasis or focus.
It was still dependent on keeping the citizen in debt.
Now the various governments adopted a system of taxation to compound the debt problems of its citizens.
Remember, the nation had to have an army, a navy, border protectors, peace-keepers, and other necessary
personnel to keep the government functioning.
The main principal behind the purpose of debt and taxation appears was to keep the majority of citizens
comfortable but never compensate most of them enough so that they became leisurely or well-to-do.
Above we briefly mentioned the feudal discrimatory slavery system practiced in the USA’s southern states, but a less
severe form was practiced also in the other parts of the good OLD USA as a form of debt.
For example, the company store and company housing, popular in the early part of the 20th century, come to my mind.
In this time period many times, a person’s employer owned the property where the
employee lived and many times owned a store that dispensed credit for all or most
of the employee’s living needs.
This often caused the employee to have a terrific debt burden, year after year.
Most employees were so laden with company debt, they were literally slaves.
Many American corporations once used debt as a means of literal enslavement.
They would provide an individual with food, clothing, and housing on credit as long as the items needed
were purchased from “THE COMPANY STORE.”
Thus came the once popular term of the early twentieth century of ” I OWE MY SOUL TO THE COMPANY STORE.“
The situation discussed above was very lucrative for the employer.
The worker became so laden down with the company store and
housing debt as to become a literal slave to this employer.
This meant that the employee many times had to stay employed by the creditor employer at any wage
the employer desired to pay until the debt was paid off, which many times took years or it never happened
due to the illness or the demise of the employee.
Countless individuals discussed above allowed themselves to become enslaved by credit and the
resulting crippling debt.
As in the present times, it was made easy to obtain credit and thus debt.
Most employers allowed the worker to charge whatever he or she wanted on credit.
This, just like today with the credit card, caused the worker to charge too much.
Most could walk into the company store and charge anything in the store until their payday.
It became so blatant as a form of slavery, some mine owners, even added, gambling and brothels, on credit
as a means of further debt enslavement.
Most of the individuals, ensnared in so much company debt, were obligated to work for the
employer for extremely poor wages for many years in the future.
Back in those days, it was almost impossible to skip out on your debt.
Not paying or being unable to pay back in those “days,” could land you in jail.
Yes, back in the day, fail to pay a debt you owed as promised and the courts could send you to the slammer.
In the past, debtor’s prisons existed all over the United States, and many,
if not most were crowded.
The above appears to be the foundations of our capitalistic system which is still intact and with us today.
New Modern Ways to Monitor Credit
In the past history of credit and debt, an individuals’ bad credit and loan history were
not readily available to the public.
If you were able to leave a region or a nation your past bad credit and debt history usually ceased to bite you.
Your credit history is under far more scrutiny today.
Today, to get credit, most banks and financial institutions take a glimpse into your past.
This history is contained in something called a CREDIT REPORT.
This credit report many times determines everything from whether you receive or qualify for a loan.
It determines also the rate of interest you’ll pay on the loan.
These credit reports are used for credit cards, loans, mortgages or even to
rent an apartment or even the rate of your car insurance.
WHAT IS A CREDIT HISTORY?
A credit history is simply a financial profile of an individual’s past or current financial dealings.
It tells lenders, landlords, and even employers how you’ve managed money in your past.
Many times it also helps them decide whether to do business with you are not
This history is usually contained in a file called a, CREDIT REPORT, that is compiled,
kept, maintained and stored by three main independent credit bureaus.
A credit report may include such information as a method
to get good credit score by looking at:
1. How promptly was your credit cards or loans paid?
2. How well you paid other bills, such as rent and utilities,
3. An individual’s total outstanding debt.
4. How much available credit do you have on credit cards,
or other outstanding loans or home equity loans?
WHO CAN SEE AN INDIVIDUAL’S CREDIT REPORT?
Anyone applying for a loan of any sort, a credit card, or home mortgage can have their report
viewed by anyone planning to advance a credit or a loan.
This will include such institutions as banks, credit unions, credit card issuers, auto financers,
and insurance companies.
This report often will also be viewed by landlords and potential employers.
Many times the details in a credit report will be a determining factor in the amount of credit
a creditor is willing to extend.
It also determines the amount of interest you’ll have to pay, and, many times, even if you get a job.
Creditors often use an arbitrary number as a person’s credit score.
This number comprised of one’s alleged credit score is probably both
arbitrary, capricious, and many time unfairly applied.
This number often determines your ability to receive credit since it is alleged to be a measure of factors
that may help or hinder your ability to repay a creditor.
The number used by most creditors is a very complex formula which takes into account, among many
factors, how a person repaid previous loans, his present outstanding debt, and current salary.
Credit scores are dynamic and in any point of time could be very different.
Individual credit scores from the three main reporting agencies many times differ.
Depending on the time and circumstance, this score will often vary.
A credit score is dependent upon how much debt you accrue and how you manage this
debt and other financial situations.
The main factors ofter determining your credit score are labeled the three C’s of credit.
Remember the 3Cs of credit are allegedly Character, Capital, and Capacity.
The credit score is both arbitrary, capricious and probably unfairly derived,
but we are forced by societal norms to use this number.
The credit score supposedly measures the following:
From a credit report, a lender may attempt to access a person’s character by making decisions about an
individual’s honesty and reliability to repay a debt.
Some things that may be considered are:
1. Has a person used credit before
2. Does person have a history of timely or late payments
3. How long a person has lived at present address
4. How long on the present job.
To borrow a large sum of money, many lenders will want to know what valuable assets you may have.
These assets,will probably include any real estate holdings, personal property, investments or savings
with which to repay the debt if for some reason income is not available.
This refers to a person’s ability to repay the debt.
A lender will often investigate to see how long a person been working regularly in an occupation
that will likely provide enough income to support the credit use.
Today, easy credit and debt enslavement are truly the backbones of the Capitalistic system.
As in feudal times, it’s working as it was intended.
The only things different today is that you no longer can be made a slave because of debt,
and you certainly cannot be put in jail because of credit.
But the debt burden is still alive and well, and boy does it ever an effect on your life and livelihood.
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