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Doesn't debt incease with inflation? I thought lenders just adjust the recurring payment to keep up with it. This might be a result of the aforementioned poor u
by npteljes 5y ago
Doesn't debt incease with inflation? I thought lenders just adjust the recurring payment to keep up with it. This might be a result of the aforementioned poor understanding though.
- rrrrrrrrrrrryan 5y agoYou're probably confusing inflation with interest rates. Some forms of loans do have interest rates which wiggle up and down depending on an index (e.g. adjustable-rate mortgages might be tied to COFI or LIBOR), but most loans do not work this way, and I can't think of any type of loan which is tied to inflation.