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Briefly, when loan amounts are so small, the interest needed to break even naturally rises.
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The longer the borrower held the loan, the smaller the interest portion of each payment, making the savings even greater for long-term homeowners.
"Over time, the beltlines have risen, and the glass has gotten a little smaller in the interest of safety," Mr. Edmunds said.
If you carry a small balance, the interest charge might be remarkably low.
Despite the growth of rural finance options, loans are very often too small or the interest on them is too high for villagers to build a sufficient credit score to access larger capital sums.
There remains the outstanding question of finding an efficient procedure, especially when the sample size is small and the interest lies in the extreme percentiles.
But even as the tags shrink, the ICARUS team plans to tag animals large and small in the interest of conservation.
And as a result, the cuts would be bigger, not smaller because the interest payments on that debt would be higher.
As in any financial solution, factoring comes with a price tag, one that may or may not be smaller than the interest and fees associated with a bank loan.
But even a relatively small reduction in the interest rate can amount to a significant savings.
"Even a small increase in the interest rate being charged on that debt could add significantly to the U.S. deficit problem," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com