Inflation lowers debt burdens, it doesn’t raise them.
My income and cost of living both went up 20% over the past few years, but it’s not a wash because my debts didn’t change. The time it would take me to pay them off has gone down considerably.
Also, compound interest doesn’t go on forever with credit cards. They are limited on how much they can charge after someone defaults, and frequently offer people as much as half-off discounts if they can’t get someone to pay after a few months.
Wait 7 years and the entire thing drops off your record if you never make a payment.
Inflation lowers debt burdens, it doesn’t raise them.
Except for adjustable rate debt, like CC debt. The article even notes that rates were typically around 15% pre rate hikes, and are now sitting at 22%.
My income and cost of living both went up 20% over the past few years, but it’s not a wash because my debts didn’t change.
My guess is that, like me, you don’t carry cc debt. I have a heloc that I haven’t started drawing from yet, but I got it last year and the rate is up slightly since when I got it. It will go down with the rates, but if there were money in it, my debt burden would also rise.
Inflation lowers debt burdens, it doesn’t raise them.
My income and cost of living both went up 20% over the past few years, but it’s not a wash because my debts didn’t change. The time it would take me to pay them off has gone down considerably.
Also, compound interest doesn’t go on forever with credit cards. They are limited on how much they can charge after someone defaults, and frequently offer people as much as half-off discounts if they can’t get someone to pay after a few months.
Wait 7 years and the entire thing drops off your record if you never make a payment.
Except for adjustable rate debt, like CC debt. The article even notes that rates were typically around 15% pre rate hikes, and are now sitting at 22%.
My guess is that, like me, you don’t carry cc debt. I have a heloc that I haven’t started drawing from yet, but I got it last year and the rate is up slightly since when I got it. It will go down with the rates, but if there were money in it, my debt burden would also rise.