Home › Forums › Discuss What’s Wrong with Textbook Economics › Rolling Over Debt
If we have over $5,000 in debt and roll it over, would this mean we now have $10,000 in debt plus interest? ALso wouldn’t this mean it would double the interst rate as well?
Rolling over debt means that an equivalent amount of new debt is taken out when old debt is paid off. So if a person rolls over $5,000 in debt, his total debt remains at its previous level.
Thank you Professor.