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.
Lower debt levels mean less potential for financial distress during the next crisis.
Not exact matches
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.
Structural factors such as aging populations, poor productivity growth and high
debt levels mean historically
low government bond yields are likely here to stay.
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.
It
means that people have invested so heavily in
low yielding
debt, that if rates return to «normal» higher
levels, people will take large losses on «principal» to compensate for this fact.
Structural factors such as aging populations, poor productivity growth and high
debt levels mean historically
low government bond yields are likely here to stay.
You can negotiate your unsecured
debt to a
lower level, which
means you end up owing less money than you owe now.
The Federal Reserve reports that household
debt is at its
lowest level in 29 years, which
means that consumers have money to spend.