Teaser loans, characterized by initially low interest rates that later increase, can pose significant economic concerns. These loans often create a false sense of affordability, encouraging borrowers to take on more debt than they can handle. This can lead to higher monthly payments, defaults, and delinquencies, potentially triggering financial instability and economic crises. The 2008 financial crisis, for instance, was significantly fueled by adjustable-rate mortgages with teaser rates, highlighting the risks associated with such lending practices. Additionally, teaser loans can contribute to asset bubbles, such as in the housing market, by artificially inflating demand and prices, which can lead to severe economic instability when the bubble bursts. This instability can negatively impact a country's standard of living, a key dimension evaluated by the Human Development Index.