4 ms·
Which is not relevant to most consumer debt, where the interest rate is set at the start and locked in for the life of the loan.
by gizmo686 5y ago
Which is not relevant to most consumer debt, where the interest rate is set at the start and locked in for the life of the loan.
- WalterBright 5y agoFixed rate debts interest are set to accommodate the current inflation rate plus higher values to accommodate the risk of inflation increasing. Lenders are not fools when it comes to inflation.
- loeg 5y agoQuite a lot of consumer debt is variable rate (credit cards, ARMs, ...), or nominally fixed rate, but rolls over somewhat frequently (car loans, mortgages as people move or refinance, pay later spending, etc).