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The Old Expression “Rob Peter To Pay Paul”
Rob Peter to Pay Paul is an old expression that refers to taking from one in order to be able to give to another.
One of my favorite pass time is to learn where everyday expressions began. This is relevant in financial planning because you need to consider what debt you are deciding to incur in order to pay off another debt or buy something new.
The origin of the expression Rob Peter to Pay Paul is unclear because there are several historic possibilities. Regardless of the origin it still make implies the same understanding. The expression implies the use of funds from one source to repay a debt to another. If you use onecredit card to pay off another, even if you’re benefiting by buying time, you’re robbing Peter to pay Paul.
The expression refers to times before the Reformation when Church taxes had to be paid from St. Paul’s church in London and to St. Peter’s church in Rome; originally it referred to neglecting the Peter tax in order to have money to pay the Paul tax.
Most feel the origin, regardless of year made reference to the Christian based understanding the Apostles Peter and Paul. In this case both the side being stolen from and side being paid are in good standing, it is the borrower who is left in limbo.
What it means in Financial Planning
Each of us has borrowed money at some point. How did you expect to pay it back? Pay back is always part of a loan. You may have expected to pay it back in regular monthly or weekly payments. You may have had to pay it back with interest or fees. You may have thought you would borrow from one person and pay them back by borrowing from another. Then you were stuck with how to pay that person back.
When considering borrowing money, it is most to know how you will plan to pay it back. Because so many don’t have a realistic payback plan that should dictate their borrowing decisions, they end up in financial distress or despair. Especially when you feel this way… Stop borrowing. Get help!
There are many businesses and services that offer advice and assistance in financial planning. I’m not talking about the ones that require complete control over your money. Be careful. Consider budget planning. Consider financial restructuring. Consider bankruptcy. They are all viable options, that if done correctly will lead you to independence and peace of mind.
Call New Mexico Financial Law for a consultation to recover from financial hardship.