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.

Interest rates have a significant impact on our purchasing decisions for various reasons. Firstly, when interest rates are high, individuals tend to be more cautious and mindful of their purchases. This is because high interest rates can significantly increase the cost of financing purchases, such as loans or credit cards. As a result, people may reconsider whether they truly need a particular item or if it is a necessity. They are more likely to prioritize saving up the money and purchasing the product outright, to avoid paying substantial amounts in interest.

Furthermore, high interest rates can make financing large items, such as cars or houses, unaffordable for many people. As the interest rate increases, so does the monthly payment amount, making it burdensome for individuals to keep up with their financial obligations. This may lead to repossession if payments are not met, causing further financial strain and implications. Therefore, individuals are more likely to delay or abstain from such purchases when interest rates are high.

Conversely, when interest rates are low, it encourages people to consider financing options as they become more affordable. Lower interest rates result in more manageable monthly payments, making it easier to fit them into one's budget. This creates an opportune time for individuals to make purchases such as cars or houses, as the overall cost will be significantly reduced. Moreover, lower interest rates mean less money to be paid back over time, which can make financing more enticing for individuals seeking to spread out their expenses.