Sentences with phrase «interest servicing your debt»

Saving is not just about earning a return on your investment, but also about minimizing the amount you spend on interest servicing your debt.

Not exact matches

This will set off a vicious cycle of higher deficits that lead to higher debt, which in turn will mean higher interest costs and less funding available for healthcare, education and other provincial services.

Lower interest rates, the report noted, could provide some cushion for debt servicing to vulnerable firms with an interest cover between 1 and 1.75 - comprising around 15 percent of the total debt of top 500 listed borrowers in fiscal 2015.

Governor Snyder has said that the bankruptcy filing will allow the city to spend more money on public services because less of its money will be hurdled toward paying interest on debt.

«The process of lowering interest rates causing higher levels of debt, debt service and spending, I think is coming to an end.»

The Internal Revenue Service monitors such debt closely, though, to make sure it is not excessive and that adequate interest is paid.

And, debt service will require cash profitability to pay the interest expense on that debt.

The Bank of Canada, for one, has carefully assessed the economic risks of consumer debt in order to determine how quickly it can raise interest rates without piling on too many debt - servicing costs for over-stretched households.

They also fear that at such elevated levels, many Canadian households would be unable to withstand a financial shock such as a loss of income, or a sudden spike in interest rates that raised debt services charges.

As well, Canada's debt - service ratio, which measures interest payments and amortizations relative to income, is at 2.9 per cent.

Your debt - service coverage ratio, also known as the debt coverage ratio, is the ratio of cash a business has available for servicing its debt, which includes making payments on principal, interest and leases.

Meanwhile, the total household debt service ratio, measured as total obligated payments of principal and interest as a proportion of household disposable income for both mortgage and non-mortgage debt, remained flat at 13.8 per cent in the fourth quarter.

This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or rising interest rates will potentially increase fiscal pressure via debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.

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.

Prepa said on Wednesday that it was financing its principal and interest payment with $ 153 million in cash and the rest from its debt - service reserve accounts.

Taxpayers who do not own their home have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.

It would not be surprising if the household sector had become more sensitive to news about interest rates, given the increased debt and debt servicing loads that it is now carrying.

As debts grow, more income must be paid out as interest and amortization rather than being available for spending on goods and services.

In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the past.

Toward debtor countries American diplomats work through the World Bank and IMF to demand that debtors raise their interest rates and impose taxes and austerity programs to keep their wages low, sell off their public domain to pay their foreign debts, and deregulate their economy so as to enable foreign investors to privatize local electricity, telephone services and other infrastructure formerly provided at subsidized rates to help these economies grow.

Interest and amortization payments to savers tend to increase beyond the economy's overall ability to pay as debt service absorbs more and more personal disposable income and corporate cash flow.

Homeowners and consumers, real estate investors and corporations have pledged so much of their income to pay debt service that there is not much left to pay interest on yet more debt.

A dynamic is put in place in which debt keeps labor down — not only by eating up its wages in debt service, but in making workers suffer sharp increases in the interest rates they have to pay or even risk losing their homes if they miss a payment by going on strike or being fired.

Interest rates remain low, corporate balance sheets generally remain strong and debt - service costs appear manageable.

The ruble's exchange rate has fallen as more rubles are thrown onto currency markets to obtain the dollars needed to pay interest and debt service on foreign loans (and to sustain capital flight in the absence of controls).

They are to pay for their rising debt service not by taxing the population, but by selling public assets to the financial, insurance and real estate (FIRE) sectors — the very sectors which are receiving the growing interest payments on the national debts resulting from lowering taxes on wealth.

A spike in interest rates makes it harder for issuers to service their debt, potentially raising default risk.

For preferred equity and debt investments, EquityMultiple receives a servicing fee in the form of a «spread» between the interest rate being paid to them by the sponsor or originating lender and that being paid to investors.

Stand in a shopping mall with a pair of scissors and a sign offering a simple service: to put an end to extortionate interest rates and mounting debt with one considerate cut.

For example, people with lower incomes are likely to be sensitive to interest rate changes because of the potential effects on their employment income and their debt - service costs.

Erskine Bowles, co-chair of the Simpson - Bowles Deficit Reduction Commission has calculated that service on the interest for that debt alone, if rates stay near record lows, will be $ 1 trillion by 2020!

For the federal government, debt service is the interest paid on the national debt.

Debt service: The amount needed to repay interest and principal on a debt over a period of tDebt service: The amount needed to repay interest and principal on a debt over a period of tdebt over a period of time.

Inc.Debt watchdog Moody's Investors Service noted Nordstrom's adjusted debt amounts to 2.6 times its earnings before interest taxes and depreciation.

Stoking the economy under these conditions, we will breed inflation forcing the Fed to increase interest rates which will stifle growth and increase debt service costs.

Posted by Nick Falvo under corporate income tax, debt, deficits, economic growth, fiscal policy, income tax, interest rates, monetary policy, progressive economic strategies, public services, taxation.

With the rising interest rate and Treasuries» yields, the question of servicing the mounting debt could become a problem for the US economy, the analyst warns.

The ongoing growth in debt has seen a steady increase in interest payments as a proportion of disposable income, and at the end of 2003 this measure of the debt - servicing burden exceeded its previous peak in the late 1980s (Graph 31).

This was the biggest proportional decline in interest rates, delivering the biggest reduction in the debt servicing burden of the household sector, seen in Australia's modern history.

Corporate gearing ratios remain conservative by historical standards and debt servicing costs remain low, reflecting the relatively low level of interest rates.

The ongoing accumulation of household debt has led to a further increase in the debt - servicing ratio; interest payments as a proportion of disposable income rose to 9.3 per cent in the September quarter (Graph 23), and are expected to rise further.

The recent rise in the debt - servicing ratio is largely a result of households increasing their debt levels, rather than an unexpected sharp rise in interest rates, as occurred in the late 1980s.

This is probably correct, but there can be transitional difficulties if borrowers have not factored in rising interest rates, have assumed that the debt servicing burden will be quickly eroded by rising incomes or, in the case of investment property, that it can be sold quickly without loss if a need arises.

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This puts central banks in a position where they will have attempt to control interest rates not by discounting lending, but by buying debt from the government directly, so that markets don't price the new issuance at a level that would destroy the nation's ability to service a debt load that is growing larger all the time.

Despite a slight increase in long - term interest rates in recent weeks, he said interest rates remain extraordinarily low and debt service levels comfortable.

While lower global interest rates have helped contain debt - servicing costs, the past year or so has seen a significant increase in net dividend payments.

Debt Service Coverage Ratio = Net Profit plus Depreciation plus Amortization plus Interest Expense divided by Current Portion of Existing plus Proposed Debt.

Higher U.S. interest rates will make servicing debt tougher for developing country governments and businesses, especially those who have borrowed in dollars.