Write 2 paragraphs at least 200 words about how interest rates affect our purchasing decesions. Identify the topic sentences by underling.
My topic sentences are the first sentence in each paragraph.
High interest rates can make people nervous about the affordability of all purchases. High interest rates force people to justify all purchases large and small. So when the interest rates are high people tend to finance things less often. This is especially true when you are using revolving lines of credit such as credit cards the interest fees accumulate quickly making you think about all of your purchases. If you are using credit cards for smaller daily expenditures you will likely pay double the amount of the original purchase. When financing larger things such as cars it can make the payment unaffordable. This is why many people are using saving for larger purchases and using cash for smaller ones.
When interest rates are lower people feel more comfortable financing. It gives the consumers the ability to purchase more expensive things, while keeping the payments more affordable. When a consumer feels like they are getting more for their money they are likely to spend more freely. When you are paying less in interest it gives you more money to spend. This is the time when most purchase larger items such as automobiles and homes. When the payments are lower you can easily fit them into your monthly budget.