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Not that I entirely agree with the parent, but as you said: > if one cannot make the payment, they are in trouble. That's a function of cost of borrowing, not
by mrosett 7y ago
Not that I entirely agree with the parent, but as you said:
> if one cannot make the payment, they are in trouble.
That's a function of cost of borrowing, not the amount borrowed.
- 12xo 7y agoIf you also mean negative interest, than yes. Otherwise, the rate of interest is meaningless if the debt cannot be collected.
- Mikeb85 7y agoThe cost of borrowing is the difference between the amount borrowed and repayed. So yes it matters. Even with negative interest rates there's principal to repay.