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Tag: debt

3 charts that show why the US should stop ignoring its debt problem

3 charts that show why the US should stop ignoring its debt problem

Finance
By most measures, the U.S. economic outlook is bright. GDP (gross domestic product) growth could exceed 4 percent in the second quarter, unemployment is at decade-lows and wages are ticking up. But one figure paints a darker picture: U.S. national debt. Gross federal debt stands at a massive $ 21.2 trillion. Economists and policymakers are increasingly urging the U.S. government to address the debt now while the economy is on solid footing and before the next crisis hits. "Even if you think that public debt just doesn't matter to economic outcomes, the thing you have to...
Funds go beyond ratings, scan company books to pick debt papers

Funds go beyond ratings, scan company books to pick debt papers

Finance
India's debt fund managers are looking beyond credit ratings while picking corporate bonds this year. Top fund managers say they now try to look at company financials, especially leveraged positions, more closely before taking a call on available papers. While a growing pileup of bad debt from India Inc had turned fund managers cautious over the past three years, a more immediate trigger for them was the recent hardening of interest rate outlook. "In last six months or so, we have become a bit more cautious in terms of credit outlook," says Amandeep Chopra, Group President and Head of Fixed Income at UTI Mutual Fund, India's oldest fund house. "As rising interest rates raise cost of capital for companies, it will impact cash flows if a company is heavily leveraged. So you need to look at l...
People living in towns and cities have more debt

People living in towns and cities have more debt

Business
People living in urban areas have bigger debts than those in the countryside, according to a study by the City watchdog. It found unsecured debts in rural areas are generally lower with the average amount owed by a town or city resident over a £1,000 more (£3,600) compared with someone in a rural area (£2,510).It also found those in the countryside are less likely to be overdrawn or unable to clear their credit card balance each month than those in urban areas, who are also more likely to use high-cost loans.However, more than half (51%) of those in rural communities - which the study found tend to be older and are more likely to be retired - rely on their state pension to get by compared with 37% in urban areas.The survey of 13,000 adults by the Financial Co...
Should I pay off my debt or save for emergencies first?

Should I pay off my debt or save for emergencies first?

Finance
Three simple ways to pay off credit card debt Why do financial experts recommend creating an emergency fund before paying off credit card debt?—Brandon You have some credit card debt and you're up for doing the hard work of paying it off. Then along come financial experts who tell you: Hold on! Emergency fund first! But why wouldn't you pay off debt as quickly as possible, especially when the average credit card charges a 16.73% interest rate? "Because life happens," says Rey Cruz, a certified financial planner with Cruz Investments and Wealth Management in Aurora, Illinois. And relying on a credit card in an emergency is incredibly expensive. In addition to the cost of borrowing, it isn't a safe fallback, says Cruz. "You can't extend your credit if the credit ...
Minimize your student debt by applying to these three colleges

Minimize your student debt by applying to these three colleges

Finance
When it comes to choosing a college and minimizing debt, forget prestige: Grant and merit aid are the way to go.A recent study by the National Association of College and University Business Officers showed that private non-profit schools are offering incoming freshmen an average tuition discount of 49.9 percent. These tuition and fee discounts — which are grant awards — allow colleges to retain or attract students who can't or won't pay the full sticker price for their education.For perspective, the average published tuition and fees at a private non-profit college was $ 37,040 during the 2017-2018 school year.The association looked at 404 private colleges and universities.Being a good student also pays.Three out of four undergraduate students received merit aid during their f...