One of the reasons so many people are borrowing is the low interest rates. I could afford to buy my last car cash but for 1% financing for 3 years I'd rather have the cash.
Something is very wrong if banks are borrowing at record low rates and yet consumers are borrowing in record amounts at record high rates!
Source: https://www.creditkarma.com/credit-cards/i/average-apr-on-cr...
Personally I prefer to just use a charge card.
To be clear this isn't financial advice, just an observation about what many people are doing due to the low rate environment.
Right now you might as well buy a house just cause. At 3% interest. It’s basically free money. Especially if you view inflation at 2%. Plus rental income and property appreciation. Why not?
But yes, mostly correct. I don't really see rates rising in a long time.