That provides investors with some assurance of stability, which subsequently allows them to
use higher levels of debt to finance their purchase and generate extra yield, adds Allan Pollack, chairman of Chicago - based Providence Management Corp..
Not exact matches
Compare two households — one in 1993 and the other in 2003 — that have the same percentage
of their income
used in
debt service, and have the same gearing ratio (
level of debt as a percentage
of value
of house), but with the 2003 household having a
debt level nearly twice as
high as the 1993 household.
With national household credit card
debt at historically
high levels, it may not seem prudent to discuss the notion
of using your credit card to pay your bills.
Private mortgages can be
used to finance home renovations,
debt consolidations and many other purposes.Private mortgage loans usually have a
higher level of risk associated with them.
These are loans that are typically taken on by firms with
higher existing
levels of debt (hence the
use of «leveraged» in the name).
With the growth
of education costs and the
level of student loan
debt taken on, it's no wonder that people with the lowest incomes are finding it tougher to shoulder the burden
of student loans, making it less likely they will be able to
use education as a way to lift themselves into a
higher income earning bracket.
«We know that the
level of debt is
high and it is concerning that Canadians might see this as an opportunity to
use the lower interest rates to purchase things on their wish list,» explained Patricia White, Executive Director
of Credit Counselling Canada.