Listen to a Business English Dialogue About Teaser rate
Abigail: Hi Anthony, do you know what a teaser rate is?
Anthony: Hey Abigail! Yes, a teaser rate is a temporary, low-interest rate offered by lenders to attract borrowers to a loan or credit card.
Abigail: Right, Anthony. It’s often used as an introductory offer, but after the teaser period ends, the interest rate typically increases to a higher, more standard rate.
Anthony: Exactly, Abigail. Borrowers should be cautious and fully understand the terms and conditions of the loan or credit card to avoid any surprises when the teaser rate expires.
Abigail: Absolutely, Anthony. Sometimes, people might get lured in by the low teaser rate without considering the long-term implications of the higher standard rate.
Anthony: Yes, Abigail. It’s important for borrowers to assess their financial situation and ability to repay the loan or credit card balance, especially when the teaser rate period ends.
Abigail: Definitely, Anthony. Being informed and proactive about managing debt can help individuals avoid falling into financial traps associated with teaser rates.
Anthony: Right, Abigail. Responsible borrowing and careful consideration of the terms can help individuals make better financial decisions and avoid unnecessary debt burdens.
Abigail: Absolutely, Anthony. By understanding teaser rates and their potential impact, borrowers can better protect their financial well-being and avoid getting into debt traps.
Anthony: That’s true, Abigail. It’s crucial to approach borrowing with caution and make informed decisions to ensure long-term financial stability.