What is usury?

Usury is a term related to banking and finance that has been around since ancient times. Usury is the practice of charging interest on a loan or other form of debt that is above the legal maximum. In Alaska, the legal maximum interest rate is 12%. Charging above 12% interest on a loan is considered usury and is illegal. Usury has been around since ancient times, when it was used as a means for creditors to earn more money off of their loans. In modern times, usury laws make sure that lenders are not able to charge borrowers excessively high levels of interest. Usury laws also protect borrowers from being taken advantage of by lenders, as the interest on the debt can quickly become unmanageable if it exceeds the legal maximum. Usury can cost borrowers significantly more money than the loan is worth, and it is important to understand usury laws in order to protect yourself from being taken advantage of. It is also important to know what the legal maximum interest rate is for a particular loan in the state of Alaska, so you can make an informed decision when shopping for a loan. Usury can be a serious issue and should be taken into consideration when making any type of financial decision.

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