Does inflation make it easier to pay off debt?

[Unhuman]

Lets say that you earn 50,000 a year after taxes and you have to pay off a 100,000 loan (after interest). If inflation increases and you are given a pay raise of 10,000 more a year then you should be able to pay off your loan quicker. Does inflation work like this in real life or am I missing something here?

 

[Deleted member 45660]

Yeah but it only works if your wage increases as well

 

[nathan]

Yeah but it only works if your wage increases as well

which isn't the case most of the time

 

[Unhuman]

Yeah but it only works if your wage increases as well

So the Inflation benefits the rich more than the poor. This would mean that inflation is a cause of inequality. I wonder if it's actually the because cause of inequality out there.

 

[Unhuman]

Yeah but it only works if your wage increases as well

which isn't the case most of the time

Can't you just increase national minimum wage for people who do not get pay rises?

 

[Unhuman]

b

 

[OneCopDayKepRopAway]

yea but wage stays same (90% times )

 

[thereallegend]

Most people are in high interest debt bud

 

[SecularIslamist]

Yeah. I hope we get 200% inflation post-WWI Germany style. I'll pay off my house quicker and in theory it should also go up the same if not higher.

 

[HTN_Mentalcel]

Yeah. I hope we get 200% inflation post-WWI Germany style. I'll pay off my house quicker and in theory it should also go up the same if not higher.

No banks arent retarded they adjust for inflation ;most of the time.

 

[SecularIslamist]

No banks arent retarded they adjust for inflation ;most of the time.

Yeah the interest rate but I'm on a five year fix so I should be fine next five years. Most Americans are on longer.

 

[Whatever]

Yes, as long as your wages go up. And if you don’t get a raise once a year or so, then maybe start looking for a new job.

This is a major positive of longer term loans with lower monthly payments, such as student loans and car loans, because the payment will be less of your income as your income goes up.

 

[Gaygymmaxx]

Lets say that you earn 50,000 a year after taxes and you have to pay off a 100,000 loan (after interest). If inflation increases and you are given a pay raise of 10,000 more a year then you should be able to pay off your loan quicker. Does inflation work like this in real life or am I missing something here?

Considering increasing cost of living costs it's negligible in terms of timeline of completion and the point you pay it off

(I'd assume I am broke never had a loan)