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Everything is floating, except the house is anchored down.
Martín Elfman for Money

Investors and economists are worried about inflation, but should you? Not necessarily. In fact, if you are paying a mortgage or struggling with student debt, it could be a lifeline.

With the U.S. economy gradually emerging from COVID lockdowns, and many consumers flush with cash from government stimulus checks, prices for goods from used cars to lumber have been spiking. A recent survey by the National Association for Business Economics revealed that over 60% of economists believe there’s a higher risk now than any time in the past two decades.

Inflation — usually measured by the Consumer Price Index — is caused by two basic factors: Consumers have too much disposable income or there aren’t enough goods and services for them to spend their money on. Either of these dynamics can have the same effect: A general increase in prices to keep up with demand. Higher prices mean less purchasing power. In other words, money loses its value.

So, how exactly does that help you?

If you’ve borrowed money, for your education, a home or anything else, inflation means you may have the chance to pay back the loan with dollars that are worth a lot less than the ones you were originally lent. That could be welcome news for all kinds of borrowers, but especially for millennials, who have more debt than any other generation.