This percentage is known as the interest rate on the loan. For investors or savers, interest comes in the form of an annual ...

Real interest rates are dictated by the rate of inflation. Higher inflation rates erode consumers’ purchasing power and the amount of interest earned from investments such as deposits.

While everyone might have a different definition of what makes an interest rate unreasonable, there's a personal finance rule of thumb that can help you prioritize which type of debt to target first.