Debt accumulation refers to the process of consistently owing more money over time. It means that an individual or organization is continually adding to their debt instead of paying it off.
Full definition
But the document notes that static calculations about debt fail to account for many other factors that can affect the entire picture, such as policy changes aimed at
slowing debt accumulation.
The paper finds that there is an intimate relationship between the monetary / fiscal policy mix and the dynamics of both private sector and public
sector debt accumulation.
In order to avoid such situation, you need to put a stop to the inertia
of debt accumulation and increase your income to debt ratio.
RBC economist Laura Cooper said in a note to clients that the most likely scenario is that as housing moderates, the pace of
household debt accumulation will also ease.
But ultimately, China needs to find more sustainable engines of growth beyond further
debt accumulation by unproductive national and local SOEs, or accept slower growth.
Beyond the strong economic indicators, President Nana Akufo - Addo said his economic management team had found imaginative ways to deal with the «oppressive debt situation» bringing relief to the country and rebuild the «annual average rate of
debt accumulation as reduced from a high of 36 percent to 13.6 percent as at September 2017.»
But ultimately, China needs to find more sustainable engines of growth beyond
further debt accumulation by unproductive national and local SOEs, or accept slower growth.
For nearly a decade, ultra-low interest rates meant the historic and natural relationship
between debt accumulation and default rates broke down, generating sustained low volatility in both credit and equity markets.
RBC says the steady pace of
debt accumulation overall should give some comfort to the Bank of Canada, which has called household debt the No. 1 risk to the financial system and economy.
But as well as «rising,» Africa also needs to be «watching»: in some countries,
rapid debt accumulation and erosion of fiscal space pose risks that need to be managed.
He is bang on in much of his analysis of what ails the advanced economies today — the ongoing deleveraging from a long period of unsustainable public and
private debt accumulation relative to GDP in which -LSB-...]
This at least raises the question about whether or not it is constitutional for the Treasury Secretary to mint a coin in order to bypass a Congressional restriction
on debt accumulation.
It is clear that the
unsustainable debt accumulation and the disastrous boom - bust cycles of recent decades have brought the world ever closer to an abyss.
Under Barack Obama it has soared to about $ 18.5 trillion, the increase almost equaling the
total debt accumulation of the prior 230 years.
However, the Fraser Institute believes that forecast downplays many «significant risks» that could
cause debt accumulation to increase.
The downgrade was based partly on the view that the agreement between Congress and the President fell far short of the $ 4.0 trillion needed to stabilize the debt - to - GDP ratio within ten years, and partly on the view that the President and Congress were, and will be, unable to come to any sensible policy plan to support job creation in the short term and
control debt accumulation in the longer term.
While Greece has dismissed such demands as «unacceptable», the country — along with many others around the globe — will have to accept that
constant debt accumulation has eventual consequences.
The RBC paper notes that overall household
debt accumulation remained flatlined at 4.2 per cent growth in May, about the same level as the previous three months.
With all the bad news floating around about Canadian consumers» bad habits (bad retirement planning,
ruinous debt accumulation, etc.) it's nice to hear some good news for a change.
«To some degree your 30s are a time of
debt accumulation rather than asset accumulation, and as long as it's good debt like a house or a reasonable car loan, that's okay,» says Scott Ellison, a certified financial planner in Halifax.
As the paper puts it, the «overall spending and
debt accumulation measured by total credit card balances at the credit bureau remain constant or increase [only] slightly, suggesting that cardholders substitute spending and debt from other credit cards.»
The document pointed to a study that argued household
debt accumulation eventually hampers economic growth over the longer term, eclipsing the nearer - term benefits of consumption.
«However, the long - run negative effects of debt eventually outweigh their short - term positive effects, with household
debt accumulation ultimately proving to be a drag on growth.»
The Bank of Canada's current interest policy
encourages debt accumulation and they have steadily provided Canadians with some great incentives to fulfill their home ownership dreams.
There are secured credit cards which can provide some control over the expenses and
prevent debt accumulation because the credit card holder needs to make a deposit into an associated account and only then he can use the credit card up to the deposit's limit.
He should make debt payments automatic on paydays and live within his means (no
new debt accumulation) going forward.
For nearly a decade, ultra-low interest rates meant the historic and natural relationship
between debt accumulation and default rates broke down, generating sustained low volatility in both credit and equity markets.
We can debate the potential causes of this imbalance — aging demographics, falling population growth, stagnation in innovation, zero - sum substitution of technology for labor, globalization, rising wealth inequality,
excessive debt accumulation, and so on.
The problem is that money is not always there and though the smarter thing to do is to pay taxes when they are due and
avoid debt accumulation, once it has already happened some sort of alternative needs to be used.
While the federal government appeals for restraint
in debt accumulation, the Bank of Canada's interest rate policy encourages just the opposite.
After the program of MBS and
debt accumulation by the Fed ended, they were still «recycling» inbound proceeds from maturing and refinanced mortgages to purchase replacement bonds for a number of years.
«Still - low global rates continue to support unprecedented levels of
debt accumulation,» the IIF said.
The Kentucky Republican said the current pace of
debt accumulation is unsustainable, arguing there should be significant spending cuts to get the debt under control.
The Canadian economy is highly sensitive to rising interest rates given the heady pace of
debt accumulation in recent years.