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Usury In Islam

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The notion of buy now and pay later has been the general consensus of American consumers for decades. Interest rates have been the main problem as American consumers have nearly accumulated nearly $11 trillion in debt. The introduction of the credit card has made it ever so easy for Americans to buy and buy as outstanding balances on credit cards have risen to more than $800 billion. With the savings rate nearing all-time lows, most consumers don't have reserves, and so their vulnerable. For most of us, it's tough to imagine life without credit cards as we reserve movie tickets, rental cars and hotel rooms, and we pay tuition, and buy our food all with credit cards. You name an expense and we'll pay it by credit card if we can. Almost all Americans use credit cards even if it’s to defer payments on other bills.

The American dream of owning a home also cannot be possible without having an established credit line. Without having established credit there will be no way a potential home owner could qualify for a mortgage. The American dream of owning a house has also seen Americans taking on more than $8.8 trillion in mortgages, up an astounding 42 percent since the 2001 recession. The fast run-up in prices in recent years has made many homeowners feel wealthy, so they can ramp up day-to-day spending. Millions of Americans have taken advantage of low rates in recent years to refinance their mortgage, which has resulted in $715 billion (2005) borrowing against home equity.

It seems as if though in America and many other developed countries living a life without credit seems impossible to do. Without having credit for example in America, qualifying for a car loan or even a home loan would be nearly impossible. At times of economic hardship, when every good idea fails, when business can't afford new investments because of the high cost of borrowing, when mortgage rates have gone up so much that it becomes difficult to maintain a decent living standard, many small savers still think that high interest rates mean at least that they get the most out of their savings. The truth is they pay more than they get. Also according to our trusted governments movements the only way to control a deficit is to raise taxes or to cut government spending. However, considering that the deficit continues to grow simply because of the amounts of compound interest added to the original debt, one of the most effective ways to reduce the deficit would be to reduce interest rates as Lower interest rates = lower deficit.
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