Sentences with phrase «debt means rate»

While the high level of existing debt means rate hikes will have a stronger impact in cooling demand than they did in previous years, it is still too soon to know just how much of an effect the bank's three rate hikes have had, Poloz said.

Not exact matches

At the same time, the fact the ECB is likely to gradually raise interest rates, it will mean that these peripheral nations could face higher debt financing when borrowing money from the markets.

Tax code changes and rising interest rates may mean debts like home equity lines of credit should take higher repayment priority.

Look for this to continue in 2016, as the lowest unemployment rate in 15 years means employers will be fighting for recent, debt - strapped graduates.

That's because raising rates means sooner or later consumers will pay higher debt servicing costs.

The quarter - percentage - point rate hike means you'll pay an extra $ 2.50 a year for every $ 1,000 of debt, according to NerdWallet.

A downgrade by a credit rating agency usually means investors will demand a higher interest rate when a company goes to raise cash by issuing bonds or other debt.

Popularized by Dave Ramsey, author of «The Total Money Makeover,» it means you prioritize your smallest debts first, regardless of interest rate.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

As Scotiabank mentioned in a note last week: «Higher interest rates are going to make the burden of refinancing the debt considerably heavier, and as more money goes into servicing the debt, it means less money is available to spend on other things, which could lead to less infrastructure spending and increased austerity.»

Unhedged foreign currency debt, as was prominent in 1997, means that a fall in the currency pushes up debt servicing costs for the government, local corporates and banks, but a rise in interest rates to assist the exchange rate has the same adverse effect.

Personal loans tend to offer lower rates compared to credit cards and the repayment terms are fixed, which means you won't have to worry about the debt lingering.

The low level of interest rates means that even though debt levels are higher, the share of household income devoted to paying mortgage interest is lower than it has been for some time.

This means that as long as the PBoC intervenes in the currency, it can not provide debt relief to struggling borrowers, and to the economy overall, by lowering interest rates without setting off potentially destabilizing capital outflows as the interest rate differential narrows.

While refinancing could mean a lower interest rate, better repayment terms, and faster debt payoff, it's definitely not the best option for 100 percent of borrowers.

As long as your debt - to - income ratio is low, however, and you have a larger equity position — meaning you can afford a larger down payment — you stand a good chance of getting approved for a loan with a decent interest rate.

But, in this case, it also means all - time high rates of consumer debt.

They usually come with a much lower interest rate, which means you can get out of debt faster.

Spending a few more years getting your student loans or other debts paid down could mean that you would qualify for a lower interest rate or a higher loan amount.

If you're spending beyond your means, or have a lot of high - interest debt, then there is a chance of less likely to qualify for the lowest rates on a mortgage.

And thirdly, of course, higher leverage means that monetary policy's impact via its effect on the behaviour of borrowers will be bigger than in the past — especially in a country like Australia where the majority of household debt is at floating rates.

That doesn't mean public debt isn't important, although low interest rates have rendered it more manageable than expected in recent years.

With corporate leverage, too little makes you a takeover target, and too much means bankruptcy when rates rise and you can't roll the debt.

This means that if your total monthly debt — including the mortgage payment — uses up more than 43 % of your monthly income, you could have trouble qualifying for a 30 - year fixed - rate mortgage.

The answer is that Fed policy is the primary factor driving the returns of short - term bonds, meaning that they tend to hold up much better than long - term debt when the Fed is expected to keep rates low as was the case in 2013.

Low rates mean cheaper debt, which makes it easier for investors to buy commercial and residential properties.

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.

Students in every mainstream macroeconomics class, and that means almost all students, would have predicted, based on the nonsense they were learning, that the high deficits and high public debt ratios in Japan at the time, should have driven interest rates sky high, that bond markets should have stopped buying government bonds, that the government should have run out of money, and all the time that these disasters were unfolding, that inflation should have been be galloping towards hyperinflation.

S&P ratings agency issued a statement reaffirming US Treasury bond AAA credit rating, but they issued a negative outlook which means there's a 1 in 3 chance of lowering the debt rating in the next 2 years.

This, in turn, means our interest rates would immediately go up on our provincial debt and thus meaningfully lower available funds for other government spending.

And on such a long term debt obligation, the difference of 0.25 % or 0.50 % on an interest rate can mean tens of thousands of dollars over the course of 30 years.

Low rates mean it's easier to qualify, even with a high debt load.

Lower interest rates, slower amortization rates («interest - only loans»), lower down payments and easier credit terms enabled millions of Americans to take on huge debts today with the hope of reaping huge capital gains sometime in the future — or simply to avoid having to pay more as home prices rose beyond their means.

When I bought my home a decade ago, my high credit and low debt levels meant that I still qualified for the best available interest rate at the time, even though I got an FHA loan with a small down payment.

Despite the difficulties endured during the era of post-Lehman austerity, commercial and private - sector debt levels are low: Nonperforming loans are below 5 % and the banking system, unlike those of Poland or Hungary, did not have to tackle the fallout from high levels of foreign currency loans, because low interest rates and a stable Czech koruna meant these weren't taken up in large quantities.

If your debt has a variable rate (meaning it fluctuates with changes to an index), work on paying it off ASAP.

This means, investors upside is potentially capped at the three (3) year rate of return described in the debt agreement.

At the same time, the carry between Chinese interest rates and U.S. Treasury yields has now turned negative, meaning that there is no longer a favorable interest rate differential to encourage Chinese investment in U.S. government debt.

Cash - out refinancing means the loan is secured by your home, so the interest rate is significantly lower compared to other debt such as credit card balances

A credit card balance transfer simply means moving your debt from your existing cards onto another new card which usually has a lower rate of interest.

The latest credit rating upgrade for Russia, however, means that its debt is now rated more highly than it was prior to the Russian debt crisis in 1998.

A higher credit score means any future debt can come cheaper, you can potentially get lower rates on insurance, and future employers who wish to see your credit report will know you're not overly indebted.

This means there's still time to lock in a lower mortgage rate or double - down on paying off debt before it becomes even more expensive.

That means that if you have variable - rate credit card or private student loan debt, your rate just went up.

That means that when your debts come due and you need new loans to pay off the old ones, investors start demanding that you compensate them for their risks in the form of higher interest rates.

STORE Capital actually source its debt from both unsecured bonds (which are BBB rated with a stable outlook) and on a non-recourse basis, meaning that its individual properties are collateral for loans taken to buy them.

More transparency in the market rates for the debt of non-investment grade companies means more accurate borrowing costs for our models.

The Clark government's mismanagement of B.C. Hydro has also led to a spike in debt at the Crown corporation, meaning they will be forced to raise hydro rates even more.

Government finances running at a surplus means everyone else running in debt (at higher rates than government pay).

Using differential interest rates rising with earnings as a means of providing for a more progressive system is less fair than a graduate tax, a graduate contribution or general taxation because those from wealthy backgrounds will have smaller debts as their families can afford to pay up front.