What role do interest rates play in mounting consumer debt?

An Trebil: Easiest definition of consumer debt is money you owe because you "consumed" something. That can be either goods or services, but NOT when you borrow money to buy things that can appreciate and hold value.An easy example: When you buy a home and loan the money to do so from a bank, that is not consumer debt, because you don't consume a home. The home lasts over time and it may appreciate in value. On the other hand, when you use your visa to purchase food or services (e.g. a massage or a haircut), that debt (the money you borrowed to in order to make those purchases) is known as consumer debt.What role do interest rates play in mounting consumer debt?---> a big role. The more debt you have the more interest you pay. Interest is the cost of borrowing money - the more money you borrow, the more you pay.What are the typical interest rates applied to credit cards, mortgages, and other debt?---> credit cards: typically 19%, mortgages: depends on the state of the eco! nomy, other debt: depends what the debt is, can be anything reallyMany of today’s interest rates are variable rather than fixed. What difference does this make to pension plans, housing loans, and other personal finances? ---> variable interest allows for flexibility and a whole host of other benefits. You'll have to research this some more....Show more

Delmer Pectol: For Credit and finance solutions I visit this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=5Y...RE :What role do interest rates play in mounting consumer debt?What role do interest rates play in mounting consumer debt?What are the typical interest rates applied to credit cards, mortgages, and other debt?Many of today’s interest rates are variable rather than fixed. What difference does this make to pension plans, housing loans, and other personal finances?Its an assignment i have but i have no idea what consumer debt is i have tried simple Google sea! rches but i cant find a clear answer since i have no idea what! it is i dont even know what i am looking for. I am only 18 and this is the first class i have ever took dealing with economic stuff D:Follow 1 answer...Show more