Credit in America was always a very important part of the development of the country. It started in the 1800′s as a way for farmers to have cash on hand at the beginning of the planting season. Banks would https://www.directaxis.co.za/ – loans farmers enough money to make it to harvest. At the end of the cycle bankers expected their money back. This early transactions were marked by astronomically high interest rates. Sometimes a farmer would be charged up to 25 to 50 percent interest! This was due to the fact that bankers did not understand the value of a loan and therefore were hesitant to give money out to people. Modern loans as direct axis don’t have as high interest rates https://www.directaxis.co.za/ – loans
In the 1900 however this changed. Interest rates went down and bankers finally realized that giving out loans made the purchasing power of consumers greater which ended up making the economy grow. Bankers however did not start just giving out money to however asked for it. Banks started asking for security on loans, this came in the form of property or income. This made conveniences and necessities be at a regular persons reach, which increased the standard of living.
The economic cycle gave birth to a new America, one that was moving away from farming and into industry. With the new purchasing power of consumers new industries formed and they in turn had to hire more people. With this increase in general wealth the States entered a time of strong development and secure credit.
In 1929 however, with the economic crash due to the speculation on wall street and other world economic factors, credit took a big blow. Because of the market crash of 1929 people were not able to pay for their loans and banks went bankrupt. Confidence in credit and investment were hard to mend. It was not until the advent of World War II that credit started coming back. During the war America went heavily into debt to make the necessary machines for the conflict. This re activated the economy and the need for credit prompted new investors to open the gates of credit once more.
This new age of prosperity out of conflict lasted fairly unultered though out the 40′s, 50′s and 60′s. The economy during those decades was stable and the inflation index remained low. The economic climate however make people over invest. World dependence on Oil caused inflation to start growing at the beginning of the 1970s. Intrest rates went sky high again and people were left out of the benefits of credit. Like the services provided by Direct axis https://www.directaxis.co.za/ – loans people could no longer afford to buy houses or cars even with the use of credit.
The exeses of the 70 also left a mark on people’s use of credit. They lost sight of the purpose of it and used it as aditional income rather than an advance of future wages. This created a big problem because people started going into tremendous debt. So, consolidate your loans with Direc axis: https://www.directaxis.co.za/ – loans In the 70′s a new occupation was created, that of the credit counselor.