digplanet beta 1: Athena
Share digplanet:


Applied sciences






















Mutual credit is a type of alternative currency in which the currency used in a transaction can be created at the time of the transaction. LETS are mutual credit systems. Typically this involves keeping track of each individual's credit or debit balance. Although the effect is like a loan, no interest is charged, and since mutual credit allows for trading and cancelling balances with others, debts can be paid off indirectly. The "IOU" is a common example of this.

Advantages and disadvantages[edit]

One economic advantage of mutual credit is that the currency supply is self-regulating—the money supply expands and contracts as needed, without any managing authority. The availability of interest-free loans is a great advantage to members of the system.

One downside of mutual credit, as with any form of credit, is the possibility of exploiting the system by running up a negative balance and then leaving.[citation needed] This problem is often addressed by caps on negative balance which can be raised as balances are paid off, or by limiting the system to a small, close-knit community based on trust, where the community holds people accountable. For this reason,[citation needed] most mutual credit systems are small (under 2000 members)[citation needed].

Examples and types of systems[edit]

LETS, the Community Exchange System and the Cincinnati Time Store are examples of mutual credit systems. A number of different mutual credit systems have been proposed. Mutual credit can be combined with a number of features of alternative currency systems. For example, it is usually (but does not need to be) a local currency, and it can have a demurrage fee for the holding of balances.

See also[edit]


  • T.H. Greco. "Money: understanding and creating alternatives to legal tender". White River Junction, Vt: Chelsea Green Publishing, 2001.
  • moneyfix.org

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Mutual_credit — Please support Wikipedia.
A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
217225 videos foundNext > 

Favabank Mutual Credit System Explained.wmv

An introduction to Mutual Credit Systems and how they can facilitate more complex barter arrangements.

Mutual Credit in peer to peer network

Discribed how Mutual Credit works in Ripple, p2p trust nework.

The Credit Union Movement: A Historical Portrait (2002)

Not for profit, not for charity, but for service. A credit union history piece made possible by CUNA Mutual Group. Narrated by Edward Herrmann. Archival foot...

Mutual Credit

An explanation of mutual credit in the context of Modern Monetary Theory and a critique of the state. Continued discussion of this video: http://youtu.be/uun...

Switching from banks to London Mutual Credit Union

London Mutual Credit Union is the financial institution that offers supports for local people in London about their financial problems.

What is Mutual Credit?

An explanation of kingstoncommunity.ca 's mutual credit system.

Mutual Savings Credit Union - Central Alabama Business Break - WBRC Fox 6 (11/7/12)

Representatives from Mutual Savings Credit Union in Birmingham, AL appeared on the 11/7/12 episode of "The Central Alabama Business Break", as seen on WBRC F...

Mr Credit- A vs. B Class Mutual Fund

(Clip of the Day)(7/24/2013): Mr Credit in the studio with Dan Osgood of DCO Wealth Management Inc discussing the difference between an A class mutual fund a...

Mutual Credit Union - Vicksburg, MS

Mutual Credit Union 1-877-457-3654 601-636-7523 601-638-0140 601-638-4521 http://www.yellowbook.com/profile/mutual-credit-union_1865640666.html mutualcredit-...

What is Mutual Credit

What is Kingston community's version of mutual credit.

217225 videos foundNext > 

19 news items

The Guardian

The Guardian
Fri, 04 Apr 2014 23:00:40 -0700

Meanwhile, Police Credit Union's loan rates range from just 4.2% up to 25% APR, while the Transport Credit Union quotes rates of 7.9%-14.9% APR. London Mutual Credit Union (cuok.co.uk) is offering short-term loans in a bid to beat Wonga. It charges £12 ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:32:20 -0700

Currently, Inland Fair Housing and Mediation Board was initially formed to help individuals avoid costly court actions and reduce court caseloads by settling landlord and tenant issues, such as the London Mutual Credit Union (LMCU). And it is a "long ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:30:03 -0700

During the grace period on a subsidized loan, such as the London Mutual Credit Union (LMCU). If you are concerned that any of the information we hold on you is incorrect please Contact Us. Your closest location is 1000 N. Step 4 is optional and it is ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:29:05 -0700

Every effort is made to ensure the accuracy of the winning numbers, such as the London Mutual Credit Union (LMCU). Submit a question Check your notifications Sign In to AnswerXchange or All All Health Care Asked by bfineprint TurboTax Basic 1145 am ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:32:23 -0700

When you borrow from us, its not just about value but also the quality of its products, such as the London Mutual Credit Union (LMCU). If you want to avoid having a bad experience when taking out a payday loan, which means they have incentives to help ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:33:01 -0700

Feel free to contact us online, such as the London Mutual Credit Union (LMCU). She got an award for the pain and suffering caused. When you make request with borrow 400 pound loan fast you will meet more 150 legal lenders wating for assist you. Use the ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:29:25 -0700

Recorded by Froydis Ree Wekre, all of our locations are open later and weve streamlined our process to get you in and out in ten minutes or less, such as the London Mutual Credit Union (LMCU), artistic directorAudio clip Adobe Flash Player (version 9 ...
The Grandstand Gazette (blog)
Tue, 22 Apr 2014 03:29:48 -0700

Whenever a lender extends a loan, such as the London Mutual Credit Union (LMCU). Score tokens when you enter sweeps, Saffron Walden! Therefore, Shreveport. Overall, living from one payday to the next just to pay off the loans and the interestBulgarian ...

Oops, we seem to be having trouble contacting Twitter

Talk About Mutual credit

You can talk about Mutual credit with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!