Inflation helps people in debt by reducing the “real” value of that debt. A rise in inflation is a risk for the lender not the borrower.

Yes, longer loan terms mean more in interest costs for the lifetime of the loan. In normal conditions it’s best to avoid that. If your trying to get through the next 6 months without defaulting, it may be a cost worth paying for some.

Economic policy wonk by day. Personal finance writer by night. I write about investing, debt, and all things related to money. Editor of Making of a Millionaire

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