Originally Posted by chiefforlife
But that two hundred dollars will now go towards your car payment, credit cards and loans. I just dont see that it would make a real difference.
The business would also have to pay higher interest rates, therefor charging that same customer more.
I think you need to re-think that just a TAD!
I cannot help people who make bad financial decisions like takeing out a variable mortgage with the expectation rates will never go up and if they do they **** that person. That's on them, sadly and sorry.
Car payment: If I have a car payment currently I am already paying on it so the lower cost of goods make it easier for me to pay that payment and still have spending money
Credit Cards: Yes, rates would go up. Go back to my point on mortgages for this.
Business would pay higher rates but in the context of increased business. As opposed to higher taxes with decreased business. I'll take the former over the latter all day long.
The fact is lower gas and food prices benefit EVERYONE! The trucking company may have to pay a higher rate on new truck purchases but the cost of fuel is down and their business revenues are up due to the increased disposable income in the economy.
It's an overall win due to the increased spending power for everyone. Especially the lower incomes.