Here's a blog post on borrowing during inflation:
Borrowing Money in an Inflationary Economy: Pros, Cons, and Strategies
Inflation affects everything—from the price of groceries to the cost of borrowing money. If you're considering taking out a loan during inflationary periods, understanding how rising prices impact debt and interest rates is crucial. Let's break down the risks, opportunities, and best strategies for borrowing during inflation.
How Inflation Affects Borrowing
Inflation reduces the purchasing power of money, meaning that each dollar you borrow today may be worth less in the future. This dynamic has both advantages and disadvantages for borrowers:
Pros of Borrowing During Inflation
✅ Fixed-Rate Debt Becomes Cheaper Over TimeIf you secure a loan at a fixed interest rate before inflation rises significantly, you're essentially repaying the loan with devalued dollars. This makes long-term, fixed-rate debt a good hedge against inflation.