Is it a bad idea to borrow loans when inflation is high?

[Good-Person]

Inflation is increasing a lot. This is why there are many people who are concerned about this. Whenever inflation is high, people usually have a harder time dealing with finance. So, when it comes to borrowing money, do you think that this should be avoided when inflation is quite high?

 

[Kane]

When there is inflation, banks increase interest rates. When the interest rates are increased, you will be paying higher interest on your loan. Therefore when there is inflation, you will have to avoid getting a loan at any cost.

 

[Good-Person]

When there is inflation, banks increase interest rates. When the interest rates are increased, you will be paying higher interest on your loan. Therefore when there is inflation, you will have to avoid getting a loan at any cost.

Interest rates increase as the government and different banks offer loans at a very high rate. They also offer low interest rates to people who have saved money in their bank accounts. The ratio of percentage of inflation is quite high as compared to interest rates many account holders receive. This is why I believe that earning interest is a complete waste of time. Having said that, banks are the ones that actually make money as they offer loans on high interest rates when inflation increases.