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The Wise Investor

2.4 Borrowing and credit
John and Kate were refreshed, relaxing on the park
bench and eating icecream. Kate felt a little
embarrassed. She felt like a little girl being naughty,
sitting on a park bench eating icecream with her
"I'm too old to be playing around like this, John,"
Kate said with a sheepish look on her face. "Can
you imagine what my kids would say if they could
see me now?"
"Rubbish," said John, smiling. "The moment
you're too old to eat icecream with me, you may as
well pack it in. Michael and Sarah are good kids, I'm
sure they wouldn't tease you for more than, say, a
couple of months at most."
"Bastard!" said Kate again, almost spilling her
icecream into her lap. "You'll get me into trouble
"I sincerely hope so, my dear," John said with a
twinkle in his eye. "Now, where were we."
"Credit, I think," replied Kate. She wasn't looking
forward to this topic, as she was an offender
herself. Still, If she could reduce all the various
repayments, it really would be a major step forward.
"Go on, John," she said between mouthfuls.
"Now, the first point I want to make," said John
as he finished his icecream, "is that all forms of
credit are simply different ways of borrowing
money. Personal loans, credit cards, overdrafts,
financing through stores, all these different
arrangements are simply different ways to borrow
In life, there's no such thing as a free lunch. If
you want to borrow something from a stranger, then
you have to pay for the privilege.