In some loans, the amount categorically loaned to the debtor is less than the principal sum to be repaid; the additional principal disappointment the same economic effect as a Debt Consolidation higher interest rate (see full stop (mortgage)).
Borrowing and repayment arrangements linked to inflation-indexed units of report are possible and are used in some countries. For example, the US government issues two types of inflation-indexed bonds, Treasury Inflation-Protected Securities (TIPS) and I-bonds. These are singular of the safest forms of investment available, since the only considerable source of risk â that of inflation â is eliminated. A fraction of other governments issue similar bonds, and some did so for frequent years before the US government.