All things held equal, and with interest rates the way they are today...
Would you rather have $25,000 in CC debt or $100,000 on a mortgage?
I know most people would say "mortgage." However with mortgage interest rates being approximately 1/4 of CC interest rates, the interest being generated is about equal.
Also a credit card with a lower balance is easier to pay off, assuming that no other charges are being made.
So why is it that most people are not willing to take on $25,000 of CC debt at 16%, but they will be more than happy to take on a $100,000 mortgage at 4%? Aren't the two very similar to one another?
Would you rather have $25,000 in CC debt or $100,000 on a mortgage?
I know most people would say "mortgage." However with mortgage interest rates being approximately 1/4 of CC interest rates, the interest being generated is about equal.
Also a credit card with a lower balance is easier to pay off, assuming that no other charges are being made.
So why is it that most people are not willing to take on $25,000 of CC debt at 16%, but they will be more than happy to take on a $100,000 mortgage at 4%? Aren't the two very similar to one another?
Comment