when people are having a hard time paying there bills we make it harder by giving them loans at a higher rate, how is this not Desecration.
2007-02-26 07:34:05 · 3 answers · asked by Frank P 1 in Business & Finance ➔ Credit
The aim of higher interest is not to make it harder for people to pay the mortgage. The lending agencies usually have to get their money from some bigger agency. The availability of money has a lot to do with the interest rate. Also how well the economy is doing. There are a lot of factors involved that I really don't understand but I do know that when workers want more money the company they work for eventually has to increase the price of their products and then the people need more money to pay for the products when they buy them. That's causes their dollars to be worth less and that's inflation. Inflation is another one of those biggies that cause interest rates to change. Have I confused you enough?. I'm sure confused,. That's why I almost failed economics and intro to business.
2007-02-26 07:46:32 · answer #1 · answered by sissyd 4 · 0⤊ 0⤋
Those who are paying higher interest rates are those that have damaged their credit in the first place. I see nothing wrong with higher interest rates for those people. I was there once myself and now I have the ability to get credit at the absolute best possible rate out there. It takes some time, but it does happen. Strengthen the credit and then you wouldn't have to worry about higher interest rates. If they are having a hard time payng now, the bank, investor or securer of a loan looks at that as a risk. The person or institution lending the money says that those are the people with a higher rate of default.
2007-02-26 15:49:17 · answer #2 · answered by caneshopper 1 · 0⤊ 0⤋
This is so simply it should not require a response.
People that are paying high interest rates are those that deserve to pay high interest rates. Lenders base their rates on risk factors, why would you loan money to someone at a cheap rate when they have a history of not paying as agreed?
If you were a bank and did this, you would not be in business very long.
And by the way, the word you were looking for is discrimination not desecration. And no, it's not.
2007-02-26 17:04:14 · answer #3 · answered by ? 7 · 0⤊ 0⤋