posted by Jessica on .
Write two paragraphs about how interest rates affect our purchasing decisions.
High interest rates make us stop and think, do we need this item? Is it a necessity? When interest rates are high people tend to finance things less. Why pay a lot in interest when you can just save up the money and buy the product and save on interest? When financing large items like a car and the interest rate is high it can make the payment unaffordable. This can lead to repossession.
When interest rates are low it makes people more comfortable with financing because it will be affordable. When interest rates are low is the time to purchase cars or houses. Lower interest rates make the payments more affordable which can fit easily into ones budget. The lower the interest rate the less you have to pay back.
I agree with your ideas.