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Tag: debt

Students risk overdraft debt spiral

Students risk overdraft debt spiral

Business
Consumer groups have highlighted their concern over the "significant minority" of students facing overdraft debts on a regular basis.Two separate reports are alerting undergraduates to the risks of a debt spiral, although they also note many are confident managing their money.After A-level and vocational results in recent days, many teenagers will now be considering further education funding.That means choosing from an array of student bank accounts.Consumer group Which? said that providers were tempting new students with perks ranging from railcards and Amazon vouchers to more traditional competition between interest rates.Using student recommendations and its own product analysis, the consumer group judged Santander and Nationwide as providing the best ...
Consumers are their own worst enemy when it comes to getting out of debt

Consumers are their own worst enemy when it comes to getting out of debt

Finance
U.S. consumers could probably get rid of their debt faster if they really wanted to. While American households dedicate about of a third of their budget to paying down debt, they also spend roughly that much on stuff they want versus what they need, according to Northwestern Mutual's 2018 Planning & Progress study. "The immediate satisfaction of some of our discretionary spending is not worth the long-term debt pressure that results," said Emily Holbrook, director of planning for Northwestern Mutual. The report, released this ...
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...