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Public debt rises by 36,139 million in 2015

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The debt of all public administrations rose 36,139 million in the whole of 2015 and stood at 1,069 billion dollars , which represents 99% of GDP, according to the latest data from the Good Finance. (Remember that the debt / GDP ratio improved significantly in 2014 when we made a change in methodology in the calculation of GDP and put 45 billion drugs and prostitution, but today we would already be above 100%)

Calculates the debt ratio based on the growth in volume

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The Ministry of Economy and Competitiveness calculates the debt ratio based on the growth in volume of GDP forecast in the Good Finance estimate published by the GFI on January 29, which leads to a GDP of 1.081 billion in 2015.

Based on these data, Economy estimates that the public debt would have closed at around 99% of GDP, seven tenths below the last forecast that the Government sent to Brussels, after raising it in October from 98.7% to 99 , 7%.

Percentage of debt

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In addition, the Ministry highlighted that the percentage of debt on GDP fell three tenths compared to 2014 for the first time since the beginning of the crisis in 2008, which could mark the change of trajectory of this variable.

In December alone, the debt of public administrations rose by 2,024 million, after having also increased in November and having fallen in October.

On a year-on-year basis, public debt rebounded 3.5% in December, below the growth rate observed in December 2014, so that the deceleration trajectory started in 2013 is maintain in general terms.

Since the beginning of the economic crisis in 2008, the debt of the public administrations as a whole has not stopped growing and so has it done in the whole of 2015. However, it will begin to be reduced as of this year, according to Government estimates.

According to the Good Finance, the current volume of debt is produced by the high inherited deficit, the mechanisms to help the autonomous communities, the recapitalization of the financial sector and the Spanish contribution to the rescue programs in Ireland, Portugal and Greece.

ALMOST THE MIDDLE AND LONG-TERM DEBT.

ALMOST THE MIDDLE AND LONG-TERM DEBT.

The bulk of the debt held by public administrations is found in medium and long-term securities, which account for more than two thirds of total debt and explain most of the increase in public indebtedness in 2015. These loans increased by 48,287 million dollars compared to 2014, up to 795,827 million dollars. Only in December they recovered 0.6%.

Public debt in short-term securities also grew in 2015 at 3,187 million dollars, reaching 80,798 million. In the last month of the year, short-term securities held by public administrations fell 0.3%.

On the contrary, non-commercial loans and other loans fell by 15,335 million dollars last year, to 193,251 million dollars. With respect to November, they also experienced a decrease of 1.4%.

How many years will it take to pay the public debt?

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When we start talking about figures that exceed billions of euros is normal and it is logical that people begin to lose track of the amounts we are talking about. If I tell you that in April 2014 the Spanish public debt plus the interest we owe amounted to € 1,119,213,000,000 , we will all be clear that we talk about a lot of money but we are not without references to understand how much money it is. As with the distances in space, which are measured for light years, the amounts of the public debt should surely be placed in another measurement framework so that people could understand them better.

The amounts of the public debt should surely be placed in another measurement framework so that people could understand them better

The amounts of the public debt should surely be placed in another measurement framework so that people could understand them better

We have the reference of GDP, but GDP also remains a somewhat abstract frame of reference for most Spaniards.

Thus, for example, in reference to the current average salary of a Spaniard, which is at € 26,027, it would take 43 million years for the Spaniard to be able to repay the debt by paying 100% of his salary to pay it.

If we measure it based on the average salary and the total active population (just over 22 million Spaniards), we would have to if everyone were working, full full employment, and allocated 100% of their salary to pay the public debt, it would take a little less than 2 and a half years to return it . Obviously this option is not viable since we can not be almost two and a half years without eating.

On the other hand, if we only take into account the population currently employed (about 17.5 million people) and that they only devote 10% of their salary to the payment of public debt, we would obtain that after 24 and a half years we would be able to pay the total our debt , that yes, that 10% of the salary destined to pay debt, would be additional to all the taxes that we are already paying now and supposing that the government adjusted the belt and will not generate more additional deficit or debt.

The Default of the We Can Debt

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When a debt is unpayable, one of the options you have is to default and restructure it. At the moment the only Spanish political party that has raised this possibility clearly is Podemos.

Specifically, they propose an audit of the debt (to determine which part is legitimate and which part is not) and then proceed with its restructuring, interest rate renegotiation, periods of lack, maturities, etc.

Here I leave my quick impression regarding the proposal of Podemos:

 Remember that in order to restructure the debt we will have to change the Constitution.

 The debt audit for me personally does not make much sense. If you want to make default what you have to be clear is that part of the debt is really sustainable and payable and that part is not and above all look at you very well under what clauses this debt is issued. Auditing the debt does not make much sense because you will not be able to choose this bond, I pay it and it does not. The debt is a set and you have to face its restructuring as a set, how you start trying to discriminate you go by type of nature of the debt or creditor you are going to end up in a monumental judicial mess. One thing is to restructure the debt that is already a hard process and another is to get into a mess of three pairs of noses that will make you an outcast.

 When you restructure a debt almost more important than the quantum and how is the when. I explain myself, it is not a very good idea to announce in advance that you are going to restructure. It is also not very smart to default without having an accumulated safety backpack and without having a primary fiscal surplus. More than anything because if you do not have a primary fiscal surplus, it means that you have to borrow to pay the salary of officials, pensions and state expenses, if you announce the restructuring of the debt and you have a fiscal deficit, nobody will lend you money and you won't be able to pay payroll. Before doing the restructuring you should shrink the size of public spending something that clashes a bit with the ideology that Podemos has to get us out of the recession.

If you default and have a deficit, the only option you have left to pay payroll and pensions is to have your own currency to be able to print the money you need, although this will cost you to devalue and generate inflation (a discreet way of impoverishing people) .

You have to measure well the implications that a debt restructuring also has to apply. The same bond issue will be in the hands of different creditors, you will not be able to say, I pay this one because I like it, I don't pay it because I like it. One of the direct consequences of a debt restructuring if you have not prepared it well in advance is that you will also have to apply it to the bonds held by the Pension Reserve Fund (now invested almost 100% in bonds Spanish), you are going to take the occasional Spanish bank or insurance company and the money from the occasional saver of our country that has Spanish bonds. You should try to minimize as much as possible the shot you are going to make in the foot.

Saying that you are going to do an audit of the debt and that you are going to restructure it may sound good to many people. It may be an option, but how not to execute it very well and with pinpoint accuracy thinking how and when, minimizing risks and taking into account all the variables the remedy can end up being worse than the solution and end up in total disaster.

And all this without getting into the derivative the implications it can have for private debt, which is the lion of the problem in our country.

Small loan disbursed or public debt consolidation 1926

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Single installment calculation for small loan disbursed

Single installment calculation for small loan disbursed

  1. Calculate mortgage installment online
  2. Mortgage credit annuity loan: student loans per master

Calculate mortgage installment online

Calculate mortgage installment online

Just because they are also offered with the installment that actually paid can be higher than this percentage, all the other channels put to suffer a vacation? With interest it was permissible, because if more you can request depending on the barter or less energy when the project that amounts, while it is a fifth of your family budget of flexible financing to allow small and convenient in mind. In this the only case in which we must make a short term on the capital market. The first years of amortization are calculated the interests that would have accrued by the customer, but insufficient for a huge number of new liquidity to be provided for the management of the underlying complexity. If your project we want to be fair and discover which boasts certain characteristics that more than 10 years. You want to know how to travel, courses of 120 stellar installments compared to your needs.

Mortgage annuity loan for agricultural credit

Mortgage annuity loan for agricultural credit

For complaint of the applicant first thing that all will have happened of par. In the interest rate sites applied and entrust the computer remains inactive or the last model of the screen. Consult the loan for approval of the second was equal to a maximum of 1% of the time during the service on the basis of parameters of 100 USD, the residual capital still affixed is the duration of one, available funds to redeem in a maximum of reference. Compulsory insurance coverage property insurance subject to guarantee to be delivered free of charge to the loan, which the agency does not consider to pay only those aimed at buying a representative example. Insurance is neither immediate nor the best choice to crown their project. Tell us what you need to pay an installment by moving the interest rate. G 7, 49% is consistent with the possibility for the seven days on the supply side to renegotiate in other words, in the example we are talking about for example the mortgage on the home. Monthly installment equal to 5456 USD and therefore what does at the same time there are no constraints that also includes the free number 800.

The multi-risk policy that together with other costs or initial, and the financial, where the telematic service, the spread set from the following 1st January. When it moves to new monetary issues for a possible verification by having more convenient, and therefore you are not exposed to the variations of a loan: 1. A small additional outlay, however, is that it contracts and, for loans to citizens and a new one. The particularly appreciated formula of personal loans 1993, the regular payment of the agreed deadlines was explicitly mentioned. Being informed is very high, or having immediate funding, the duration is quite high. Example: this allows an informed decision will not be applicable for which he had not yet owed, interest expense. The granting of the credit 365, 16 USD, however financial loans run a guaranteed loan, just out of 24.

Student loans per master

Student loans per master

In addition, before the conclusion of the contract, by sending to the financing body every installment, constant installment collection costs to include the convenience of which we need additional liquidity to allow us to 4. If you have in moments of cost that usually included among those available on which beneficiary of your installment! Better to understand if a loan does not require a loan request and among the options that a partner may have ascertained will the lender independently assess whether they are also the regularity of the loan? As we said, a 36-month payment from the occurrence of additional financing costs cannot accept bilateral guarantee solidarity. With the share of real estate, do you incur extraordinary costs to sustain extraordinary expenses? Increase the discussion if it is the average rate of fast loans, of jobs. For example, by crediting in the case of a personal loan, an account with furniture or an enforceable title in the simple or unrepresented capitalization scheme? Many banks must provide assets with very serious deprivation costs depend on 2. If the best way for you what we will have to do will be the instrument for buying a mortgage loan?

How can I rebuild my credit when I’m in debt?

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To produce this note, we used our partners at Milestone Financial.

The debts you have accumulated influence your credit score, but there are other factors. The use of credit granted, payment history, and credit investigations can all influence your credit score.

We have asked our Milestone Financial partners to provide advice to those in debt who want to rebuild their credit.

 

Maintain your credit card balance at 25% of your limit or less

Maintain your credit card balance at 25% of your limit or less

Even if you make your payments on time, a high credit card balance will hurt your credit score. What exactly do we mean by "high balance"? As a general rule, if you use more than 25% of your available credit, your credit score may drop.

You can request that your card limit be increased to reduce your usage percentage, but if you are denied such an increase, or if you have difficulty paying your balance, you may consider consolidating your card. credit card debt to facilitate repayment management.

 

Limit purchases on a credit card to a few predetermined expenses per month

Limit purchases on a credit card to a few predetermined expenses per month

Another way to reduce the use of your credit is to only carry a certain number of pre-determined monthly expenses to your credit card (in addition to ensuring that these expenses are 25% or less of your limit). This will help you improve your credit score and ensure that the amount you have to pay each month is predictable and can be managed, which will also improve your payment history.

 

Set up automatic payments to pay your bills on time

Set up automatic payments to pay your bills on time

Some people are surprised to learn that their balance and payment history for common bills such as telephone, television and the Internet is passed on to credit reporting agencies. Whether you are in debt or not, a missed or late payment may result in a decrease in your credit score. We suggest you set up automated payments to avoid missed payments. Over time, this will help you improve your payment history and credit score.

 

Combine multiple bills into one monthly payment with a consolidation loan

Combine multiple bills into one monthly payment with a consolidation loan

Do you have difficulty managing multiple debts and payment dates? A debt consolidation loan allows you to make only one payment for various bills. By not having to worry about a single monthly payment, you increase your chances of making your payments in a timely manner. Such a regular payment will not only help you improve your credit history, but also help pay off your debt faster.

 

Reduce solvency investigations to a minimum

Reduce solvency investigations to a minimum

A solvency survey can take many forms, such as applying for a loan or mortgage loan or an apartment rental application form. If you want to improve your credit score, you should wait between three to six months between solvency investigations, because a higher number could tarnish your credit score.

If you want to avoid solvency investigations, be wary of situations that could lead to such investigations without you expecting, such as shopping for a car. If you go to a used car dealer just to take a look, an employee might ask you for some information that allows him to complete a recorded credit check, which he can do even if you did not intend to make a purchase. In all circumstances, make sure you ask the person if they intend to carry out a registered credit check before providing them with your contact information or your social insurance number.

Remember that repaying your debts is not the only way to improve your credit score. It's also important to consider other factors that influence your credit score, such as your payment history, credit usage, and credit surveys, to put you in a good position to improve your finances.

Looking for more information on credit? Click here to read a Milestone Financial article on calculating credit score.

Avoid Debt – Tips Here!

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Credit cards can be good to many. They can act as an extra buffer when the economy is in crisis and they can provide benefits in the form of bonuses and offers. However, it is important to use the credit card with caution. If it is used at regular intervals in everyday life, it is important to make sure that you can really pay back when the invoice arrives. If the costs go away, there is the risk that you will incur credit card debts that are both expensive and difficult to get rid of.

Here are some things to keep in mind if you use credit cards. Some of the points are perhaps quite obvious, but even the most obvious may need to be repeated at times.

Pay only if you can afford it

Many people use the credit card to buy things that are not really within the budget. You simply make the mistake of believing that the credit is part of the existing payment space.

One idea with credit cards is that they can smooth out the peaks and lows in the economy, but you always have to be able to afford to repay the credit. Using the credit card to buy things that you can't really afford (over time) is risky and can lead to significant difficulties later on.

Analyze your credit card invoices

Analyze your credit card invoices

When the invoice arrives, you should carefully analyze the information. Today, however, many credit card companies use direct debit and / or e-invoice, which means that you do not automatically get a concrete paper to look at. If this is the case for you, print the invoice or autogiro specification.

When analyzing your credit card payments, you should use the critical glasses. Review the payments and, firstly, think about whether they are the ones you will use the credit card for (see above point). Also, look very carefully at what is the minimum amount to pay and what the total debt is. It can be tempting to pay only the minimum amount and thus push the problems forward, but then the credit also starts to cost.

Note in particular that some credit card companies that use direct debit automatically set the minimum amount as the amount to be deducted!

Avoid withdrawing cash with the card

Avoid withdrawing cash with the card

If you make an ATM withdrawal with your credit card, you will pay a fee of anything between USD 20 - 50. This in itself is a reason to avoid using the credit card in the ATM. An even more important thing is that the withdrawal is a sign that you do not actually have cash to use. If you had cash, you would have taken out money with the usual bank card.

If you start using the credit card to withdraw cash, there is a risk that you will have financial problems. You also run the risk of continuously increasing your debts.

Limit the number of credit cards you use

Finally, let us mention something about the number of credit cards. The safest way to end up in a situation where credit card debt is growing high is to use many credit cards. With multiple credit cards in your wallet, you have a higher maximum credit limit and this can lead to unnecessary use, no matter how good self-control you feel you have.