Can someone explain this to me?

CT99099CT99099 Forumite
12 Posts
Name Dropper First Post

I’m currently trying to become debt-free and have been doing loads of research into it, as well as things like the types of debt. On one of the sites I’ve viewed a few times (I can’t seem to find the URL, otherwise I’d post it here to help you more) they kept on talking about “fixed rate debt”. 

To be honest, I didn’t really understand what it was so I Googled it and only found search results for fixed rate bonds. Are these one in the same or am I missing something? 

From what little I do know about bonds, I don’t think it would make sense in the context I was reading it in, but hey, I might (and probably am) wrong.  

Thanks for any help in advance!


  • Graham1982Graham1982 Forumite
    122 Posts
    Fourth Anniversary 10 Posts Name Dropper

    I may be wrong but I think fixed rate debt refers to loans etc i.e. the rate stays the same for the lifetime of the product - you get a loan at 5% and you pay 5% interest until the balance is cleared. 


  • badmemorybadmemory Forumite
    6K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
    I think Graham is correct.  Fixed rate debt & fixed rate bonds are the 2 faces of lending/borrowing money.  One you pay it the other you receive it at a fixed rate.
  • VinknutVinknut Forumite
    82 Posts
    Second Anniversary 10 Posts Name Dropper
    Most personal/unsecured loans are fixed rate for the duration of the loan.

    Most credit cards are variable rate, and the rate will vary along with the Bank of England base rate.
  • sourcratessourcrates Forumite
    26.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You were probably looking at a site that uses American terms, most unsecured loan borrowing in the UK is at a fixed rate.

    Secured loans are usually at a variable rate, so for example the interest rate can go up or down, depending on the markets.

    Credit card interest can be at a fixed rate for a period of time also.

    Basically secured borrowing is normally at variable rates, whilst unsecured personal loans are at a fixed rate of interest.
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