#Forbegginers

What is a high-income household:

A high-income household is a household that earns significantly more than the average income in a given country or region.

What is a low-income household:

A low-income household is a family or individual with earnings below a certain threshold, making it difficult to afford basic needs like food, housing, healthcare, and education.

Reasons why a high-income household may borrow more than a low- income household:

• Higher Creditworthiness – Banks and lenders offer larger loans to high-income earners since they are more likely to repay.

• Bigger Investments – High-income households may borrow for expensive assets like real estate, luxury cars, or business ventures.

• Lower Interest Rates – They qualify for better loan terms, making borrowing more attractive.

• Tax Benefits – Some loans, like mortgages, come with tax deductions that high-income households can take advantage of.

• Wealth Growth Strategy – Borrowing for investments (stocks, businesses, real estate) can increase wealth over time.

• Better Access to Credit – They have more financial options, including personal loans, credit lines, and investment loans.

THE END