By, Meredith Anderson
With the economy where it is now people are taking more and more loans. It seems scary to be borrowing money but it’s one of the greatest ways that is keeping the economy stimulated. If people don’t have the money to buy anything business will go out of business. As risky as it sounds people that are taking loans and paying at least some of them are actually helping the economy grow ever so slightly. Business and banks are offering even lower loan rates to attract more people. Auto companies are offering cheaper prices on cars as well as offering lower loan interest rates. Home prices have become more affordable do to the decrease in real estate action. Student loans have increased over the past couple years as well, however, not because of the idea that “this is the time to buy,” but because of the increase in college tuition and the decrease in many families incomes.
All these three types of loans are stimulating our economy now but how will they affect us later? If the economy doesn’t bounce back to where we predict than many people will become even more in debt. The problem with loans is that they seem great and are easy to obtain. Because it is so easy to obtain these loans people are buying homes, cars, and other items that they couldn’t usually afford and will have a lot of trouble paying back even if the economy does turn around.