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.
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