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Having a high interest rate greatly affects the account it belongs to. It will add up to high finance charges which will increase the balance, increase the monthly payment, and lower the amount of the payment that applies to the principle.

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โˆ™ 2013-06-27 20:12:01
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Q: What are the risks of having a high interest rate?
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Related questions

What is the interest rate risk?

There are many different interest rate risks to think about when dealing with money. You could potentially pay more than you get.


What benefits are there in consolidating debt mortgage?

Debt consolidation is when you take out a new loan to pay off all your debts - often at a lower interest rate. If you___re having trouble keeping up with several high-interest loans, it could be worth looking into. Debt consolidation can save you money, but there are risks.


When you are earning interest is it better to have high or low rates?

High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.


Do you want a high or low interest rate in a savings bond?

If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.


What is an advantage of having an interest rate credit card?

The advantages of having a credit card with an interest rate is it helps build one's credit faster. The higher the interest rate of the credit card, the higher the credit score.


Who is the best provider of High Interest Rate Savings Accounts?

WaMu is the best provider of High Interest Rate Savings Accounts.


Is it better to have a credit card with a high interest rate or low interest rate?

If you carry a balance, then it's better to have a low interest rate. If you do not carry a balance, then the interest rate doesn't matter at all.


Do All accounts receive the same rate of interest?

No. All accounts are different and thus have different risks and rewards. Thus, all accounts will accrue interest differently (although some may share the same interest rate).


What rate offers does Nationwide International have for high balance accounts?

Nationwide International offers a special interest rate for those with high balance accounts. You can choose between an annual or monthly interest rate. For accounts with a balance of more than 25,000 pounds, the annual interest rate is 1.6%, while the monthly interest rate is 1.5%.


How high is the interest rate on savings?

The interest rate on savings can be as high as 2.5% in the UK, despite the extremely low national interest rates. If one is willing to lock their money up for longer, e.g. such as a bond, they might get a higher rate.


What is the bank with the highest Certificate of Deposit interest rate?

Everbank has a very high interest rate right now.


How can interest rate help indicate the health of a countrys economy?

The risk of a nation is based on the interest rate...high rate bad health of country economy, low interest rate better situation


Is a interest rate of 40 percent per month legal for a cash loan?

It's a very high interest rate but not illegal. A rate this high will give you an incentive to pay it back quickly.


Whats the example of price risk?

exchange rate, interest rate, oil price, and inflation risk are all examples of financial risks.


What are some benefits of storing money in a high rate savings account?

One benefit of using a high rate savings is having low to no minimum balance so one does not need to worry about maintaining a certain balance in the account. The main benefit of this type of account, however, is the high interest rate on the account which means one's money will generate more interest than in regular savings accounts.


What banks offer high interest rate accounts?

Different banks will offer different interest rates. Some banks that offer high interest rates include Ally Bank and Capital One which has an interest rate of 0.84% and 0.75%.


How interest rate affect households?

If your interest is high then the money remain with you will be low to support your need. On the contrary you will be left with more money if the interest rate is low.


What does having a high credit score mean?

A high credit score means that you have great credit. A high credit score of over seven hundred can help you get a better interest rate on a loans like mortgages.


What is the interest rate on a Union Plus credit card?

The interest rate on a Union Plus credit card, which is issued by HSBC, isn't disclosed until an application is submitted, but can be as high as 23.4%. The interest rate on cash advances is also as high as 23.99% with this credit card.


Why is it advisable to consolidate debt for a credit card?

It is wise to consolidate debt for credit cards when the debt is at a high interest rate, a person may take all the high interest rate debt and combine it into one debt with a lower interest rate to save money.


What is the relationship between interest rate and savings?

There is a positive relationship between interest rate and savings. When interest rate is high people will save more in the banks or invest more so that they can get higher return on it. Higher the interest rate higher will be saving and vice versa.


What are the benefits of having a Capitol One Mastercard?

The benefits of having a Capitol One Mastercard are the following but not limited to: security, high interest rate which means more money in one's pocket, and ease of use.


What are the risks of a high resting heart rate?

If you have a high resting heart rate, it can lead to a heart attack. It can also lead to other stress related problems.


What is considered to be a high interest savings account rate?

High interest savings account rates vary, depending upon the bank a person selects. A higher interest savings account rate could be anywhere from 0.75% to 1.00%.


What are Adjustable Rate Mortgages?

Having an adjustable rate mortgage means that the interest rate can be changed by you or your loan provider after a few years. This can be dangerous for the homeowner, because if national interest rates go up, the interest rate on your adjustable rate mortgage could go up too.