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As long as wages continue to rise, this is great news for the vast majority of Americans that are in debt. Congratulations, your mortgage and student loans aren

As long as wages continue to rise, this is great news for the vast majority of Americans that are in debt. Congratulations, your mortgage and student loans aren’t as a big relative to your income.

gruez 5y ago
But then future loans will be at a higher interest rate?
- throwaway0a5e 5y ago
  Which puts downward pressure on prices for things you buy with credit. And then you can refinance later so it's a wash. The problem you hit along the way is that people get screwed out of any ability to save money toward a down payment on anything as their wages lag the increased price of everything that they need to spend those wages on.
anthonypasq 5y ago
that assumes peoples incomes are increasing
spamizbad 5y ago
No idea why this is downvoted. Its true - inflation can be good for those who carry large debts.
- WillPostForFood 5y ago
  You better have fixed rates. It isn’t going to help lower income people who are more likely to have credit card debt or variable rate mortgages.
  - spamizbad 5y ago
    Most low income people are already paying near their maximum legal rate on credit cards.
  - mywittyname 5y ago
    Fixed rates are the standard for mortgages and car loans. An outcome of the Great Financial Crisis was a move away from ARMs through a rise in rates and in income levels necessary to qualify for them. Plus, banks prefer fixed rates in a declining rate environment (basically the past 10 or so years.). But yeah, credit card debt is never good.
HPsquared 5y ago
Inflation is usually accompanied by increased interest rates.
JohnWhigham 5y ago
But wages haven't risen. It's the exact reason why so many places are "struggling" to find people: the fucking people don't want to work at the same wage from 5 years ago.
- mywittyname 5y ago
  Wages are rising at the fastest rate that's been seen since measurement began in the 50s. Yes, it is offset by the decline in wages from last year, but there is continuing upward pressure on wages. https://tradingeconomics.com/united-states/wage-growth https://tradingeconomics.com/united-states/wage-growth
jimbilly22 5y ago
sure. they wont though.

As long as wages continue to rise, this is great news for the vast majority of Americans that are in debt. Congratulations, your mortgage and student loans aren’t as a big relative to your income.

gruez 5y ago

But then future loans will be at a higher interest rate?

throwaway0a5e 5y ago
Which puts downward pressure on prices for things you buy with credit. And then you can refinance later so it's a wash. The problem you hit along the way is that people get screwed out of any ability to save money toward a down payment on anything as their wages lag the increased price of everything that they need to spend those wages on.

anthonypasq 5y ago

that assumes peoples incomes are increasing

spamizbad 5y ago

No idea why this is downvoted. Its true - inflation can be good for those who carry large debts.

WillPostForFood 5y ago
You better have fixed rates. It isn’t going to help lower income people who are more likely to have credit card debt or variable rate mortgages.
- spamizbad 5y ago
  Most low income people are already paying near their maximum legal rate on credit cards.
- mywittyname 5y ago
  Fixed rates are the standard for mortgages and car loans. An outcome of the Great Financial Crisis was a move away from ARMs through a rise in rates and in income levels necessary to qualify for them. Plus, banks prefer fixed rates in a declining rate environment (basically the past 10 or so years.). But yeah, credit card debt is never good.

HPsquared 5y ago

Inflation is usually accompanied by increased interest rates.

JohnWhigham 5y ago

But wages haven't risen. It's the exact reason why so many places are "struggling" to find people: the fucking people don't want to work at the same wage from 5 years ago.

mywittyname 5y ago
Wages are rising at the fastest rate that's been seen since measurement began in the 50s. Yes, it is offset by the decline in wages from last year, but there is continuing upward pressure on wages. https://tradingeconomics.com/united-states/wage-growth https://tradingeconomics.com/united-states/wage-growth

jimbilly22 5y ago

sure. they wont though.