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Yakk · 07-29-2005, 04:59 AM

Thanks greeneyes!

The 2% number is interesting. 2% to 5% works out to a 27% to 80% annual interest rate.

27% isn't far off for a credit card -- enough to pay interest and some left over to deal with principle, and some swing-room if you are a fool and start getting penalty rates.

However, do banks pay attention to the interest rate on the debt source?

Ie, if you have a revolving line of credit at 7%, would that be factored in at 0.6% to 1% per month? (0.6% per month is a small bit bigger than 7% per year)

Is that 40% of income pre or post income tax income?

07-29-2005, 04:59 AM	#290 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Thanks greeneyes! The 2% number is interesting. 2% to 5% works out to a 27% to 80% annual interest rate. 27% isn't far off for a credit card -- enough to pay interest and some left over to deal with principle, and some swing-room if you are a fool and start getting penalty rates. However, do banks pay attention to the interest rate on the debt source? Ie, if you have a revolving line of credit at 7%, would that be factored in at 0.6% to 1% per month? (0.6% per month is a small bit bigger than 7% per year) Is that 40% of income pre or post income tax income? __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.