16 Jun Sumerians Were The First Culture To Use Interest.
The concept of interest on a loan pre dates the Birth of Christ to the time period of the Sumerians. The Sumerians expected loans to give birth to a higher return. Sumerians often lent cattle instead of money. This is where the concept of “giving birth” came from. They expected that the lent herd would give birth to calves. So when the original loan of calves was repaid it would be the original herd plus some of the calves that were born.
If the Sumerians lent silver, gold or barley these loans were also expected to be paid back with interest. The interest rate for metals was 20% and for barley was 30%. The concept of interest on loans has been around for a very long time. This fact makes me wonder why we still have not developed a system to regulate the lending industry to prevent predatory behavior.
Remember that knowledge is power. Therefore, the more knowledge you gain about the affects of interest the more power you will have in controlling your financial future.
Written by Kansas City, Missouri Bankruptcy Attorney, Rachel Lynn Foley.