To be able of lending money to someone the banks have to borrow a given sum. They borrow the money from the national treasury that gives it with an interest, too. The question is, from where does the treasury have the money to lend it? The answer is simple. It doesn’t have any. The society is told that the fortune of a treasury consists in the amount of gold that the treasury owns. The only problem with this is: there is no such amount of gold that can ever cover the value of existing money in the world.

Over time many types of loans have evolved to “help” people. They are actually helpful in some situations, because the average person cannot afford to have the necessary amount of money to do something big, like building a house.

If a loan is the only solution to a problem, then we have to choose carefully. Small problems necessitate small money amounts. In this can help personal loans or payday loans. These loans are small sums that have to be repaid in a shorter period of time but have bigger interest. Loaners are not stupid. They know that with a bigger sum comes bigger responsibility. This is why they give more money only if it’s secured with collateral. Secured loans mean more money. These sums can be used for bigger investments like buying a terrain or a car.