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Let's say a mortgage lender, credit card issuer, insurance company or landlord quotes you a more expensive interest rate or premium price or refuses to rent you an apartment because of your credit score.
Such high national debt is not without consequences: it leads to more expensive interest payments while the flood of new British gilts into the bond market will crowd out investment that might otherwise have gone into the private sector.
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For instance, those with adjustable-rate mortgages that may become more expensive if interest rates rise may be able to lock in a lower rate for longer if they refinance into a fixed-rate mortgage, Gallant says.
Debt becomes more expensive when interest rates increase.
Tech stocks tend to finance their growth capabilities with debt, which becomes more expensive when interest rates increase.
Employees or contractors hired by some colleges often try to convince borrowers to defer payments (which usually freezes interest rates), or go into forbearance -- a process that delays a default but can make the loan 20percentt more expensive because interest continues to accrue.
The rest use various satellite or wireless technologies that are far more expensive and of interest mainly to customers in rural areas that have not been wired for cable or D.S.L. service.
And to top it off, the decline in the dollar, which normally would bolster inflation by making imports more expensive and push interest rates higher, is coming at a time when inflation is so tame that Fed officials will not worry if prices go higher and interest rates are near lows not seen in more than four decades.
Old economy stocks, in contrast, use debt, which becomes more expensive with higher interest rates.
Deep in the fine print, you might find a variety of different fees that make your loan more expensive than your interest rate makes it seem.
The oil company's main five-year dollar bond was trading on Thursday at a yield of 5.5% - some 3.25% more expensive than the interest rate that the US government would have to borrow at.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com