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More debt interest, higher taxes and smaller GDP.
Not exact matches
But
debts that carry a high
interest rate (typically over 8 %) and weren't used to strategically help you afford a big purchase, are
more problematic.
Interest on the
debt, at 9 % of annual budget spending, is now nearly half of what the province spends on each year on education and
more than one - fifth of what's spent on healthcare.
Hacking away at $ 348.8 - billion in total
debt would give the province
more room to deal with the next recession — especially in an era of economic uncertainty and rising
interest rates.
Low
interest rates have encouraged corporations to take on
more debt despite the fact their cash flows can't support such
debt loads.
I'm not
interested in raising equity; remember, equity is
more expensive than
debt, and can be very expensive in the long run.
Further, late - stage financing typically involves
more debt, which by its nature is affected by
interest rates, he adds.
But low
interest rates, at least in Canada, have pushed household
debt to such vertiginous levels that officials like Carney know they shouldn't be counting on consumer spending to drive the recovery — ergo, the call for
more corporate investment.
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More than half (58 per cent) of Canadians pay their credit card balance in full each month, avoiding credit card
debt and
interest payments altogether.
The
more Poloz and his deputies repeat their contention that the threat posed by household
debt has receded, the
more confidence executives and investors will have that they can make decisions without having to worry about a snap
interest - rate increase.
If mortgage
interest rates were higher, paying down this
debt would make
more sense, but with rates at about 4 percent, investing that money could yield a higher rate of return.
Although mathematically it makes the most sense to pay back the
debts with the highest
interest rates first, for Sall, starting with the smallest ones — regardless of
interest rate — was far
more motivating.
And if
interest rates go up, the government would have to pay much
more to finance the
more than $ 14 trillion in Treasury
debt held by investors.
The Federal Reserve's ultra-low
interest - rate policy since the financial crisis may have lent support to a listless economy and made the government's massive
debt a lot easier to finance, but it's been
more than hard on retirees and conservative savers.
If you have a good payment history you can threaten to take your
debt to another company which will charge zero or low
interest for a year or
more.
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.
Beyond then, we expect the company to sustain credit measures that are consistent with its intermediate financial risk profile, characterized by fully adjusted
debt to EBITDA of 2.5x - 3.0 x, funds from operations to
debt of
more than 25 %, and EBITDA
interest coverage of
more than 5.0 x.
Toys «R» Us, meantime, was left to pay
more than $ 400 million a year in
interest alone on its
debts.
The firm has warned for months that increasing
debt loads at companies could stir up trouble as
interest rates move higher, making it
more difficult for them to refinance.
Speaking in Montreal on Thursday, central bank governor Stephen Poloz called household
debt a major risk to the Canadian economy, suggesting the fear of stoking
more borrowing as one reason he has not been even
more dovish on
interest rate policy.
Then, in the early 1990s, the Bank of Canada began inflation targeting, which brought down
interest rates and made the carrying costs of
debt far
more manageable.
Auditor general Bonnie Lysyk's report noted that the government now spends
more on
debt interest than it does on post-secondary education, and those
interest costs are growing.
If you direct any extra money to your highest
interest rate loan first, you may save hundreds of dollars or
more in extra
interest payments and you may be able to get out of
debt faster.
We're investors at heart, and the best way to get started investing
more is by cutting out high -
interest debt.
(Bloomberg)-- An investment fund that's seeking a payout from the Cuban government on
more than $ 1.3 billion in defaulted
debt and back
interest has hired the lawyer who won a settlement for hedge funds in a long - running legal battle against Argentina.
Irregular income and business expenses could help explain why self - employed individuals have
more credit card
debt, which leads to higher
interest rate costs.
Any refinancing of our
debt could be at higher
interest rates and may require us to comply with
more onerous covenants, which could further restrict our business operations.
The first and
more important is that
interest rates are expected to rise from their current low levels, making any given amount of
debt more costly to finance.
International investors have become
more interested in China - related opportunities after a period when worries over China's
debt levels suppressed their appetite.
Logically I know paying off the
debt sooner would save me money in
interest and the sooner I pay it off the sooner I can save
more.
The amount of
debt that is projected under the extended baseline would reduce national saving and income in the long term; increase the government's
interest costs, putting
more pressure on the rest of the budget; limit lawmakers» ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to finance a government's borrowing unless they are compensated with very high
interest rates.
Typically retail firms roll over
debt to buy time, but
interest rates have risen since the last set of buyouts several years ago, making that prospect
more expensive.
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.»
Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of
interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government
debt is being sensibly restructured into long - term bonds; tighter environmental regulation and
more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.
Debt leveraging inflates property prices, creating (6) hopes for capital gains, prompting buyers to take on even more debt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current inc
Debt leveraging inflates property prices, creating (6) hopes for capital gains, prompting buyers to take on even
more debt in the speculative hope that rising asset prices will more than cover the added interest, which is paid out of capital gains, not out of current inc
debt in the speculative hope that rising asset prices will
more than cover the added
interest, which is paid out of capital gains, not out of current income.
Paying off that
debt quicker will reduce the overall cost (since you're eliminating paying
more interest).
Interest in developing alternative sources of
debt for Australian corporates is growing as
more superannuation funds, borrowers and banks di...
The sooner you're able to pay back
debt, the
more money you'll save on
interest payments.
On the flip side, if prolonged low
interest rates encourage people to take on
more debt, financial stability concerns grow.
The potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower
interest rates outside the U.S. that make the U.S.
debt relatively
more attractive, and good demand for longer - dated securities from insurers and others.
This brings me to a third plot line: that is, how we deal with the higher level of household
debt and higher housing prices, especially in a world of
more normal
interest rates.
Thereafter, the downward adjustments to budgetary revenues
more than offset the downward adjustments to total expenses, the latter primarily due to the lower outlook for
interest rates on public
debt charges.
As student
debt becomes
more and
more common, it is critical that borrowers understand how much student loan
interest rates can affect the total payment over the life of a loan.
A
more cost - effective strategy is the
debt avalanche method, under which you tackle the balance with the highest
interest rate first.
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.
The only variables he admits are structure - free: The federal government can indeed spend
more and reduce
interest rates (especially on mortgages) so that the higher mortgage
debt, student
debt, personal
debt and corporate
debt overhead can be afforded
more easily.
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.
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.
It is
interesting to note that Private schools had $ 3,603, or 22.81 %,
more debt per graduate than Public schools on average.