What is the primary disadvantage of usury?

The primary disadvantage of usury is that it exploits financially vulnerable individuals. Usury generally refers to the practice of lending money at excessively high-interest rates. This practice commonly targets individuals who may not have access to conventional financial resources or who are in urgent need of funds. As a result, these borrowers often find themselves trapped in a cycle of debt, where high repayment costs can lead to further financial distress.

Usury takes advantage of the desperation and lack of financial literacy that many economically disadvantaged individuals experience. By imposing draconian interest rates, lenders can profit significantly while the borrowers struggle to meet their obligations. This exploitation not only impacts individuals' finances but can also have broader socio-economic consequences, perpetuating cycles of poverty and limiting opportunities for financial stability and growth. The emphasis on exploitation in this context makes it clear why this aspect of usury is viewed critically.