How can you get ahead when interest rates on savings accounts, checking accounts, etc.. are typically less than 2% and rates on credits cards is 10% or higher, even as high as 30% in some cases. Oh, and mortgage rates, 30year mortgages have a 5% or higher rate.
For most people being in debt is a choice between present and future consumption. Interest rate reflect market forces, inflation expectations, and risk of default. Interest on savings accounts reflect the fact that the banks are not seeking more deposits because the economy is slow and they do not need more money to make loans. Since mortgages are 30 yr loans the rates is less determined by conditions now as it is by the expectation of futures rates and inflation. Credit cards are unsecured loans with very high risk on nonpayment so the rates are high and it is foolish to carry debt on credit cards if you have savings. If you have unexpected expenses you can use your credit card if what is left is saving is not sufficient after you pay off the card, but it does not make sense to get 2% and pay over 10% on money
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I am about to start construction on a house and have my constrcution loan thru National City, they will also be the owner of the mortgae when the loan is converted at the end of construction. If NC is sold before the loan gets converted, will the new buyer of NC have to honor the details of the loan agreement I had with NC, or will I be at risk of having to redo the mortgage loan and potentially have to pay a higher interest rate?
The only thing that will change is who you make your check out to & where you mail it. They cannot change the terms of the original loan.