While most people have heard of interest rates, or even paid them over long periods of time, they're most commonly known on a general level. What this means is that specifics will largely only be known by those that specialize in finance, Robert Jain included. This is why it's in your best interest to do research and ask questions. Here are just a few of the questions regarding interest rates that tend to come up the most.
"What, exactly, are interest rates?" According to reputable names in finance like Bob Jain, an interest rate is a percentage of a payment that someone owes on top of what's already due. What this means is that if you have to make a monthly student loan payment, you'll have to pay interest on top of that until the debt is fully paid off. This is just a general definition, but it should give you a good understanding of the topic at hand.
"What do interest rates do for me?" Though you may know to pay interest rates, you probably don't know what they do for you in the long term. For one, they will be able to influence the cost that someone will have to pay when borrowing money. This can trickle down to you if, for example, you decide to take out a loan for a house you've had your eye on. The purpose of interest rates may not seem evident at first, but everything will become clear in due time.
"What determines a set interest rate?" The variables of interest rates are numerous, with some being more prevalent than others. For instance, if you owe money to your bank, the bank itself will set it. What this means is that the rate can change by something as simple as transferring from your current bank to another. It can also be determined by nationwide inflation, which may require a little more research on your end.
"Are there ways to make paying interest rates easier?" For those that are stumped on options, in this regard, there are ways to make this process easier on yourself. One of the best strategies is to pay your debts earlier. The newer your debts are, the less interest you have to pay. The same can be said if your debt is a considerably smaller amount. By being timely with your payments, covering interest rates will be made significantly easier.
"What, exactly, are interest rates?" According to reputable names in finance like Bob Jain, an interest rate is a percentage of a payment that someone owes on top of what's already due. What this means is that if you have to make a monthly student loan payment, you'll have to pay interest on top of that until the debt is fully paid off. This is just a general definition, but it should give you a good understanding of the topic at hand.
"What do interest rates do for me?" Though you may know to pay interest rates, you probably don't know what they do for you in the long term. For one, they will be able to influence the cost that someone will have to pay when borrowing money. This can trickle down to you if, for example, you decide to take out a loan for a house you've had your eye on. The purpose of interest rates may not seem evident at first, but everything will become clear in due time.
"What determines a set interest rate?" The variables of interest rates are numerous, with some being more prevalent than others. For instance, if you owe money to your bank, the bank itself will set it. What this means is that the rate can change by something as simple as transferring from your current bank to another. It can also be determined by nationwide inflation, which may require a little more research on your end.
"Are there ways to make paying interest rates easier?" For those that are stumped on options, in this regard, there are ways to make this process easier on yourself. One of the best strategies is to pay your debts earlier. The newer your debts are, the less interest you have to pay. The same can be said if your debt is a considerably smaller amount. By being timely with your payments, covering interest rates will be made significantly easier.
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Please consult Bobby Jain to learn more about finance as a whole.. Also published at What To Ask About Interest Rates, With Robert Jain.
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