Inflation doesn't pass interest.
Inflation doesn't pass interest.
Interest doesn't matter unless you have a variable rate.
If you owe 100 bucks, but there is inflation, that 100 bucks wasn't worth as much as when you took out the loan. Now it is worth less. You still only owe the same 100. You actually win.
I'm sure there are places that can explain it better, but that is the TL;DR.
Interest doesn't matter unless you have a variable rate.
If you owe 100 bucks, but there is inflation, that 100 bucks wasn't worth as much as when you took out the loan. Now it is worth less. You still only owe the same 100. You actually win.
I'm sure there are places that can explain it better, but that is the TL;DR.
If you owe $100 at an interest rate of 16%, you're going to owe 116. If inflation was 3% - you're still $112 in the hole.
Understand?
If you owe $100 at an interest rate of 16%, you're going to owe 116.
If inflation was 3% - you're still $112 in the hole.
Understand?
112 is less than 116, so you're proving my point?
112 is less than 116, so you're proving my point?
(post is archived)