debt

Tempted by low borrowing rate?

 

The Federal Reserve's Quantitative Easing 3 program is in full effect, holding interest rates at all-time lows. But will the fed's pledge to keep interest rates low through 2015 actually inspire people to take out a loan? 74% of respondents to this month's Financial Security Index poll said "No." Bankrate.com asked people on the street if they were more inclined to get a loan and came back with mixed answers.

"No, I'm trying to pay all my debt off as quickly as possible. I don't think that the economy is very strong right now."

"Personally I do not, just because of the factor that I am currently paying off a student loan. But if I needed to I would look into it, though."

"Yes. (and why?) Well, the cost of money is so low that I think I could re-invest and make a spread, minimum, excluding capital gains. That's one reason. The other reason is I think rates are going to soar ultimately and I'd like to lock in some long terms rates at these levels."

"Interest rates are low. That's going to give the initiative for low-class and middle-class people to go ahead and get a house or something like that. So on and so forth; go to a bank because interest rates are low."

"I could because my interest rate is low and, one, my credit is good. I think it's a good idea that they dropped the interest rate for people to get loans. And for people that got bad credit, I don't know what they're going to do, but for me, I think it's a good idea that they are doing it."

To see the full results of this month's poll or to shop around for the best interest rate on your next loan, just visit Bankrate.com. I'm Lucas Wysocki.

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