Lender interest – John Hesch http://johnhesch.com/ Mon, 21 Nov 2022 20:03:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png Lender interest – John Hesch http://johnhesch.com/ 32 32 Credit card applications remain strong despite rising interest rates, says New York Fed https://johnhesch.com/credit-card-applications-remain-strong-despite-rising-interest-rates-says-new-york-fed/ Mon, 21 Nov 2022 19:10:07 +0000 https://johnhesch.com/credit-card-applications-remain-strong-despite-rising-interest-rates-says-new-york-fed/ Strategic Wealth Partners investment strategist Luke Lloyd discusses the impact of the latest inflation report on markets and the crypto crash amid FTX’s bankruptcy filing. Credit card applications have surged this year as Americans face higher daily spending on necessities like food, gas and rent, according to a New York Federal Reserve survey released Monday. […]]]>

Credit card applications have surged this year as Americans face higher daily spending on necessities like food, gas and rent, according to a New York Federal Reserve survey released Monday.

The credit card request rate hit 27.1% in October, above last year’s level of 26.5% and the pre-pandemic reading of 26.3%. In 2022, the typical request rate for credit cards was 26.7%, about 3.6 percentage points higher than last year.

Application rates rose for Americans with credit scores above 760 and fell for those with scores below 680.

Although fewer Americans anticipate needing to come up with $2,000 for an unexpected expense next month (32% vs. 33.1% in 2021), more respondents said they would struggle to find the extra money .

SLOWING INFLATION? NOT IN SOME CITIES, WHERE CONSUMER PRICES ARE STILL ABOVE 12%

Fan of plastic credit cards is in a woman’s hand. (iStock/iStock)

“Looking to the next 12 months, households predict they will be less likely to apply for a car loan, mortgage or mortgage refinance loan, but report a higher average likelihood of applying for a credit card or credit card limit increase,” the New York Fed said in a statement. “Consumers expect some easing of credit standards, signaling slightly lower perceived probabilities that future credit demand be rejected, provided they apply within the next 12 months.”

The increase in credit card applications is of some concern, as interest rates are currently astronomically high. The average credit card APR, or annual percentage rate, set a new high of 19.14% last week, according to a Bankrate.com database that dates back to 1985. The previous high was 19% in July 1991.

If people go into debt to offset higher prices, they might end up paying more for items in the long run. For example, if you have $5,000 in debt – which the average American does – current levels of APR would mean that it would take approximately 191 months and $6,546 in interest to pay off the debt by making the minimum payments.

INFLATION KEEPS U.S. ECONOMY KEEPING UP AS PRICES REMAIN COMPULSARILY HIGH

By comparison, the average rate of 16.3% at the start of the year would mean paying about $5,517 in interest and getting out of debt after 185 months.

American grocers

Shoppers are seen inside a Kroger supermarket on October 14, 2022 in Atlanta, Georgia. (Photo by Elijah Nouvelage/AFP via Getty Images) ((Photo by Elijah Nouvelage/AFP via Getty Images) / Getty Images)

“Credit card rates are much higher than most other forms of debt,” said Bankrate.com analyst Ted Rossman. “We’re talking three, four, or even five times more than most people pay on mortgages, car loans, and student loans. Paying off your credit card debt should be a top priority, especially with interest rates at record highs.”

The survey comes a week after the New York Fed announced that credit card balances rose more than 15% from a year earlier, the biggest annual jump in more than 20 years.

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“With prices more than 8% higher than they were a year ago, it’s perhaps unsurprising that sales are on the rise,” the Fed researchers said. written in a blog post. “The real test, of course, will be whether these borrowers can continue to make payments on their credit cards.”

Edward Lawrence of FOX Business contributed to this report.

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S&P – The New Indian Express https://johnhesch.com/sp-the-new-indian-express/ Sat, 19 Nov 2022 08:08:00 +0000 https://johnhesch.com/sp-the-new-indian-express/ By IANS CHENNAI: Rising interest rates will allow Indian banks to continue posting good profits for the remainder of FY23, according to S&P Global Market Intelligence. In a report on India’s banking sector, S&P Global Market Intelligence said five of the six largest banks by assets in India reported increased net profit for the fiscal […]]]>

By IANS

CHENNAI: Rising interest rates will allow Indian banks to continue posting good profits for the remainder of FY23, according to S&P Global Market Intelligence.

In a report on India’s banking sector, S&P Global Market Intelligence said five of the six largest banks by assets in India reported increased net profit for the fiscal second quarter that ended September 30, 2022.

“Banks have taken advantage of the higher interest rate environment to strengthen their net interest margins, while earlier efforts to reduce their non-performing assets have resulted in lower provisions for loan losses, such as the showed their newly released results reports,” the report noted.

Second-quarter fiscal results from the private sector, as well as public sector banks, were “perfect,” said Tusharika Aggarwal, research analyst, Asia-Pacific dividend forecasting at S&P Global Market Intelligence.

“I remain quite confident in the bank’s earnings for the rest of the year. Interest rate hikes, although the quantum will decrease, will still benefit Indian banks. And because credit growth is increasing, so despite high interest rates, net interest income will grow,” Aggarwal added.

While lending rates have risen overall with growing demand, interest rates offered to depositors have risen more slowly. Additionally, the gap, along with lower provisions for credit losses, resulted in better return on assets for banks, Aggarwal said.

Citing data from the Reserve Bank of India (RBI), the S&P Global Market Intelligence report indicates that bank credit growth accelerated for public and private sector banks in the first half of the 2022-2023 financial year. .

Private sector bank credit growth for the fiscal first half was 20.4%, compared to 13.9% for public sector banks.

The central bank expects gross domestic product growth of 7% in the current fiscal year ending March 31, 2023 and 6.5% in the next fiscal year, dampened by further monetary tightening in the central bank’s struggle to control inflation.

According to the report, although the RBI has raised its key rate by 190 basis points to 5.90% since May, another hike in the interest rate may not be abrupt as inflation may have peaked.

READ ALSO | Nine Russian banks open special vostro accounts for rupee trading

The main surprise in banks’ second-quarter financial results was a 25 basis point quarter-over-quarter increase in net interest margin (NIM), S&P Global Market Intelligence said, citing a report from Jefferies.

Most banks reported faster credit growth due to higher loan demand.

With deposit growth lagging behind credit growth, interest rates on term deposits will rise, which could lead to a movement of funds from savings accounts to term deposits, according to the report.

Some bank chiefs have said they will try to keep NIMs intact by opening more savings accounts where interest costs are low.

S&P Market Intelligence said the State Bank of India (SBI) reported an increase in fiscal second quarter net profit to 147.52 billion rupees from 88.89 billion rupees, while the net profit of the Bank of Baroda for the period rose 56.8% year-on-year to Rs 34. billion of Rs 21.68 billion.

READ ALSO | RBI Governor to Meet Bank CEOs on Wednesday; discuss the slow growth of deposits

The National Bank of Punjab, however, reported that its net profit for the quarter fell 55.3% to 4.94 billion rupees as the state lender increased provisions for non-performing assets by 30.9% by year-on-year to 35.33 billion rupees.

Private sector banks also recorded higher revenues, with HDFC Bank Ltd posting a 22.3% year-on-year increase in consolidated net profit for the September quarter to Rs 111.25 billion, while ICICI Bank Ltd recorded a 31.4% increase in net profit. at Rs 80.07 billion. Axis Bank Ltd’s profit rose 65.7% to 56.12 billion rupees, S&P Market Intelligence said.

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The pressure on lending rates increases at the end of the year https://johnhesch.com/the-pressure-on-lending-rates-increases-at-the-end-of-the-year/ Wed, 16 Nov 2022 23:34:10 +0000 https://johnhesch.com/the-pressure-on-lending-rates-increases-at-the-end-of-the-year/ Faced with the strong growing pressure on the USD/VND exchange rate, interest rates on deposits have not yet cooled, so the pressure on interest rates on loans during the peak months of the year is still enormous. Customers transact at a bank. (Photo: SGGP) Attract deposits, maintain liquidity Although the interest rate on deposits in […]]]>

Faced with the strong growing pressure on the USD/VND exchange rate, interest rates on deposits have not yet cooled, so the pressure on interest rates on loans during the peak months of the year is still enormous.

Customers transact at a bank. (Photo: SGGP)

Attract deposits, maintain liquidity

Although the interest rate on deposits in the market is no longer at the level of 11% per annum, the race is not over yet. Not only competing for term deposits with interest rates of 8% to 9% per annum, the interest rate race among commercial banks has now begun at demand deposit rates (savings account in current account).

Tight liquidity in the banking system has forced commercial banks to raise interest rates on deposits to attract money to ensure liquidity, experts say. Data from the State Bank of Vietnam (SBV) shows that capital raising in the first nine months of the year accounted for only about a third of lending (deposits grew by more than 4% , but loans jumped almost 11%). The third quarter 2022 financial statements of commercial banks also show that many banks have loan-to-deposit ratios exceeding the authorized limit of 85%.

In the past, the SBV has raised the benchmark interest rate twice in more than a month, with a total increase of 2%, to help commercial banks stimulate capital raising through lower interest rates. high interest to ensure liquidity. However, it seems that she has not yet managed to ease this tension. A commercial bank executive said that even if bank liquidity was not depleted, it still needed to raise interest rates on deposits to attract money to defend, especially when the run up on interest rates interest in the market is intensifying. Moreover, despite the rise in interest rates, it is still difficult to raise capital because the SBV attracts the Vietnamese dong through the channel of Treasury bonds. At the same time, the credit limit is limited, so that individuals and companies are forced to use their own capital for consumption, production and business activities, thereby reducing deposits in banks. In addition, recent breaches related to corporate bonds have also affected the bank’s liquidity.

Financial analysts predict that interest rates on deposits could continue to climb in the last months of 2022 due to the increase in credit demand. Market liquidity will be under pressure when deposit growth cannot keep pace with credit growth. Strong demand for cash will continue to put pressure on liquidity in the banking system.

Interest rates on loans are rising

The SBV raised the benchmark interest rate and the USD/VND exchange rate band, resulting in a simultaneous increase in the lending interest rate and a sharp increase in the USD/VND exchange rate. Input costs have risen, forcing banks to raise lending rates to secure corporate profits. Currently, interest rates on non-priority business loans have jumped 3-4% from the same period last year. Banks lend in the range of 9-11% per year, depending on customer groups and lending goals. Many companies even have to borrow money at an interest rate of almost 13% per year.

Dr. Nguyen Tri Hieu, a banking finance expert, said the US Federal Reserve (Fed) has raised interest rates six times this year to 3.75-4% per annum. Interest rates are expected to continue to rise in the final months of 2022 and 2023, so it is reasonable for the SBV to increase benchmark interest rates. Financial experts have also said that when the Fed continues to raise the US dollar interest rate, the USD/VND exchange rate will fluctuate accordingly.

To limit the devaluation of the Vietnamese dong, the management agency can use foreign exchange reserves or increase interest rates. However, benchmark interest rates have already been increased in September and October 2022, and foreign exchange reserves have reached a safe level of three weeks of imports as the SBV has sold a significant amount of foreign currency from the reserves of change to stabilize the domestic exchange rate. According to Rong Viet Securities Company’s analysis, the exchange rate and interest rates are spiraling. Therefore, the SBV could increase the operational interest rate by 0.5-1% in the last two months of the year, as this is the most likely tool to ease the pressure on the exchange rate. And then the pressure on interest rates will also increase in the near future.

Dr. Nguyen Huu Huan, head of finance department at HCMC University of Economics, said the SBV has raised interest rates to restrain foreign capital flows and ensure liquidity in the system. Because if interest rates are too low, banks will not be able to raise capital, and liquidity will be difficult. However, rising interest rates will affect economic recovery and growth. Unfortunately, in the current global environment, we cannot have both macroeconomic stability and high economic growth. Mr Nguyen Quoc Hung, secretary general of the Vietnam Bankers Association, said it is impossible to ask commercial banks to keep interest rates on loans unchanged amid rising deposit rates . However, banks must also raise lending rates to an appropriate level to share the hardship with customers.

SBV Governor Nguyen Thi Hong: SBV ready to support liquidity

Last October, the market was mainly affected by psychological factors and complicated movements in the global economy. Faced with this situation, the SBV quickly and promptly fulfilled its role as a regulator by deploying tools and solutions to provide liquidity support to the system. All banks guarantee operational security indicators in accordance with SBV regulations.

As an executive, SBV is ready to support liquidity to ensure the solvency of credit institutions, especially at the end of the year. Currency and foreign exchange markets are under pressure and fluctuating, but this is the general context of countries around the world, not just Vietnam. The important thing is that Vietnam’s economic base remains quite positive. In the coming times, the SBV will actively monitor and grasp the situation to offer appropriate solutions and management tools with the right dose and the right time.

Dr. Truong Van Phuoc – Member of the National Financial and Monetary Policy Advisory Council: Flexible Resolution of Anti-Dollarization Policy

In the current environment, with the Fed continually raising interest rates, triggering the return of the US dollar to the United States because money will flow to places where interest rates are high, we need to reconsider the idea of ​​limiting dollarization to what level is appropriate. For example, interest rates may be adjusted accordingly. It may not be advisable to raise foreign currency from the people, but for import-export business with foreign currency income, credit institutions should consider the mechanism of interest rates to maintain the amount capital in foreign currencies deposited in the bank, which leads to the rate of dollarization. increase.

To solve the stressful problems in the foreign exchange market, it is necessary to increase the supply, decrease the demand and flexibly adjust the anti-dollarization policy with interest rate tools to increase the supply. When commercial banks can mobilize foreign currency at an appropriate interest rate, the bank can balance deposits and loans.

Source: SGGP

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Jeff Bezos weighs in on Mat Ishbia’s interest in owning NFL commanders https://johnhesch.com/jeff-bezos-weighs-in-on-mat-ishbias-interest-in-owning-nfl-commanders/ Mon, 14 Nov 2022 11:40:38 +0000 https://johnhesch.com/jeff-bezos-weighs-in-on-mat-ishbias-interest-in-owning-nfl-commanders/ Mat Ishbia, President and CEO of United Wholesale Mortgage. Photo courtesy of UWM. Mat Ishbia — the mortgage industry billionaire and former MSU basketball player — is considering a bid for the Washington Commanders in his quest to own an NFL franchise. Why is it important: Owning a team in the country’s most popular sports […]]]>

Mat Ishbia, President and CEO of United Wholesale Mortgage. Photo courtesy of UWM.

Mat Ishbia — the mortgage industry billionaire and former MSU basketball player — is considering a bid for the Washington Commanders in his quest to own an NFL franchise.

Why is it important: Owning a team in the country’s most popular sports league would raise Ishbia’s national profile and could increase his commercial influence.

  • Ishbia, president and CEO of Pontiac-based United Wholesale Mortgage, would join Dan Gilbert, Sheila Ford Hamp, the Ilitch family, Tom Gores, Stephen Ross and Steve Ballmer among professional sports owners with ties to Detroit.

Ishbia recently told the Washington Post, “I’m interested in exploring this opportunity further in the very near future.”

  • A UWM spokesperson tells Axios that there is nothing further to add at this time.

Yes, but: Former Amazon CEO Jeff Bezos, with his enormous wealth and connections to DC, appears to be the favorite among potential Commanders bidders.

What they say : “If the rumors are true about Bezos, which makes sense, he’s sort of a no-brainer,” Lisa Delpy Neirotti, a sports management expert at George Washington University, told Axios.

Catch up fast: Commanders owner Daniel Snyder recently hired an investment bank to help with a potential sale.

  • Snyder’s management of the team has been dismal since he acquired it in 1999, but the past two years, including sexual harassment lawsuits and a lengthy name change process, have been particularly damaging.
  • A federal criminal investigation into the team’s financial irregularities was reported earlier this month.

The plot: Commanders could bring in as much as $7 billion – another milestone in the rapidly rising values ​​of professional sports teams.

The bottom line: Even if he outbids this time, Ishbia seems determined to own a professional team in the near future.

  • “I really believe he will own (NFL) one day,” Delpy Neirotti said. “There are going to be other teams for sale.”

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Bank profits jump but rising interest rates are a double-edged sword https://johnhesch.com/bank-profits-jump-but-rising-interest-rates-are-a-double-edged-sword/ Fri, 11 Nov 2022 20:02:29 +0000 https://johnhesch.com/bank-profits-jump-but-rising-interest-rates-are-a-double-edged-sword/ Australia’s big banks raked in nearly $30 billion in 2022, but face a tougher 2023 as some borrowers struggle to pay their mortgages as interest rates soar. Key points: Australia’s big four banks made $28.5 billion in cash profits in 2022 Official rates have risen seven times since May to 2.85% If unemployment rises, some […]]]>

Australia’s big banks raked in nearly $30 billion in 2022, but face a tougher 2023 as some borrowers struggle to pay their mortgages as interest rates soar.

In 2022, Australians took advantage of historically low interest rates to buy the Aussie dream, helping banks post windfall profits.

The combined cash profit of the country’s largest banks rose 6% to $28.5 billion, the best result since 2018 according to accounting firm PWC.

And that’s even as banks’ net interest margin – the amount they charge to borrow versus what they pay for funding – has fallen to a record low of 1.77% due to competition. fierce for home loans.

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Mortgage customers most at risk as banks raise interest rates(Sue Lanin)

PWC Banking chief Sam Garland said big banks have come through the pandemic by making more loans, cutting expenses and simplifying their operations.

“Loan growth of around 7% which actually offset a decline in margins for the full year,” he said.

“The second major driver was notable spending, including corrective actions, which decreased by $1 billion for the year.”

A man in a blue suit looks at the camera
Sam Garland, leader of PWC Banking, says some borrowers are facing a fixed-rate “mortgage cliff”. (ABC News: Billy Draper )

Banks are also making more money by charging customers higher interest rates as the Reserve Bank raises official borrowing costs to curb inflation.

Australians with variable mortgages from Commonwealth Bank, National Australia Bank and ANZ saw their interest rates rise another 0.25 percentage points on Friday as the RBA’s latest rate hike takes effect.

But as rates continue to rise, banks are on the lookout for increased bad debt and defaults, especially if much of the world, and even Australia, slips into recession.

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Written statement by Jeremy Miles on student loan interest rates https://johnhesch.com/written-statement-by-jeremy-miles-on-student-loan-interest-rates/ Wed, 09 Nov 2022 14:54:07 +0000 https://johnhesch.com/written-statement-by-jeremy-miles-on-student-loan-interest-rates/ Jeremy Miles MS (@Jeremy_Miles)Welsh Minister for Education and Language on student loan interest rates capped at 6.5% for three months starting December 1, 2022 I made a statement on 5 September 2022 to confirm the intention to cap the interest rate charged to Welsh students on certain loans from September 2022 at 6.3% for a […]]]>

Jeremy Miles MS (@Jeremy_Miles)Welsh Minister for Education and Language on student loan interest rates capped at 6.5% for three months starting December 1, 2022

I made a statement on 5 September 2022 to confirm the intention to cap the interest rate charged to Welsh students on certain loans from September 2022 at 6.3% for a period of three months. This cap was also announced by the British government for English students.

I can now announce that the interest rate will be capped from December 1, 2022 for a further three-month period. The rate for these three months will be 6.5%.

The rate of inflation, which determines the interest charged on some student loans, has increased significantly. Interest rates on these loans would have reached as high as 12% without the September cap. The Welsh government must ensure rates do not exceed the prevailing market rate and has taken action three times in 2021 to cap loan rates and protect students.

With prevailing market rates remaining high, the rate for loans taken out by undergraduate students since 2012 and by postgraduate students will be capped at 6.5% between December 1, 2022 and February 28, 2023. other rate caps may apply if the prevailing market rate continues to be lower than student loan interest rates after that date.

Interest rate changes do not affect monthly student loan repayments, which are charged as a fixed proportion of income. Loan repayments depend on income. Students only repay their loan if they earn above a threshold, and remaining debts are forgiven after thirty years.

The cost of living should never be a barrier to studying at university, which is why the Welsh government offers the most generous grants in the UK. Welsh students have less to repay on average than their English peers. The Welsh government is also offering debt forgiveness of up to £1,500 for each borrower entering repayment, a scheme unique to the UK.

Recommend0 recommendationsPosted in Education

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Five things you can do if you’re worried about rising interest rates https://johnhesch.com/five-things-you-can-do-if-youre-worried-about-rising-interest-rates/ Mon, 07 Nov 2022 00:35:00 +0000 https://johnhesch.com/five-things-you-can-do-if-youre-worried-about-rising-interest-rates/ You don’t have to look far yet to find stories of recent first-time homebuyers with serious financial worries. On Reddit over the weekend, a buyer who bought in 2021 said he was worried about what might happen to his $1.4 million home loan. Even though they had a household income of $250,000, the prospect of […]]]>

You don’t have to look far yet to find stories of recent first-time homebuyers with serious financial worries.

On Reddit over the weekend, a buyer who bought in 2021 said he was worried about what might happen to his $1.4 million home loan. Even though they had a household income of $250,000, the prospect of seeing their 3.45% interest rate turn into 7% or more was frightening.

” To my knowledge, [I] am unable to sell without having to pay the bank again,” the person wrote.

“Whereas [I] I know I am in a privileged position, this has a huge impact on my mental health, especially seeing other FHB colleagues and close friends applauding the fall in property prices. Obviously, FOMO and bearing the consequences, it looks like a weekly drop of bad news on bad news.

READ MORE:
* Answers to your financial questions: I fear that my mortgage rate will increase
* Answers to your money questions: what to do with my revolving credit?
* How to Stop Your Mortgage “Holiday” Costing Thousands

If you’re in a similar situation and wondering how to get out of it, there are a few things you can do.

Determine what your refunds are likely to be

Mortgage adviser Glen McLeod says there’s no magic bullet, so the first thing most people need to do is figure out what their repayments will rise to when they’re fixed, and how their family budgets could be modified to deal with it.

“At the end of the day, I think we’re going to see a lot of that over the next two years – it’s only going to get worse before it gets better.”

Your bank’s website will give you an idea of ​​current rates, and you can use a home loan calculator to determine your repayment amount.

From there, you can see if there are enough changes you can make to your current expenses to make them affordable.

“Maybe you’re not doing that Bali vacation or whatever this year, maybe it has to be in Whitianga,” McLeod said.

“Do you need to buy that cheese at $30 a block? Everyone needs to watch this stuff now – even filling up your car now is so expensive, it’s all over the place. But as long as you can make it work, it’s only for a moment, it will go up but then it will come down.

Increase your income

If things are really tight, you may need to research how you can increase your income.

This may mean pressuring your boss for a raise (apologizing to the Reserve Bank), moving to a better-paying job, or a part-time weekend job.

Stuff reported last week that a borrower who worried about rising interest rates at the same time his home’s value fell had taken on a second job to help cover the costs. You can also take on a roommate or boarder to help you out.

People who bought last year are in a particularly difficult situation, the prices of real estate are falling at the same time as the rates are soaring.

Kelly Hodel / Stuff

People who bought last year are in a particularly difficult situation, the prices of real estate are falling at the same time as the rates are soaring.

Restructure your loan

Katrina Shanks, managing director of Financial Advice NZ, said you might be able to get some relief by changing the terms of your mortgage.

If you’ve had a loan for a while, or took it out for a shorter term, you may be able to reduce your repayments by restructuring it to be repaid over 30 years.

A loan of $500,000 at a rate of 6% works out to $1,383 per fortnight over 30 years, compared to $1,486 over 25 years.

Some people took the opportunity to pay more than the minimum on their home loans when interest rates were low. If this was the case for you, it gives you more flexibility to negotiate lower refunds when you come to refix.

Interest only

Shanks said another option could be to ask your bank to make your home loan “interest-only” for a period of time.

This means that you only pay the interest on the debt, you do not reduce the principal due. A $500,000 interest-only loan would cost $577 per week at 6%, compared to $691 per week in principal and interest over 30 years.

Take mortgage leave

In extreme cases, you could apply for a mortgage holiday. You can do this by notifying your bank that you are having difficulty and following their process for applying for the vacation.

This gives you a break from your payments for a short period of time. But interest is still charged, so you’ll come out of the vacation with more money. You will need a plan to deal with it.

Shanks said it was important not to panic. “Remember to speak to your lender before you start missing payments – there is almost always a solution, you need to speak to experts such as financial advisers to help you.”

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Loans rise as interest rates rise, KNEWS https://johnhesch.com/loans-rise-as-interest-rates-rise-knews/ Thu, 03 Nov 2022 15:44:00 +0000 https://johnhesch.com/loans-rise-as-interest-rates-rise-knews/ New loans granted by Cypriot banks increased by 217 million euros in September compared to August, driven mainly by business loans above 1 million euros, which increased by 127.6 million. In addition, consumer credit interest rates reached a 4-year high and mortgage and business loan rates up to 1 million euros reached a 6-year high, […]]]>

New loans granted by Cypriot banks increased by 217 million euros in September compared to August, driven mainly by business loans above 1 million euros, which increased by 127.6 million.

In addition, consumer credit interest rates reached a 4-year high and mortgage and business loan rates up to 1 million euros reached a 6-year high, in the framework of the normalization of the monetary policy of the ECB.

According to data published by the Central Bank of Cyprus (CBC), total new loans in Cyprus in September amounted to 478.3 million euros, compared to 261.3 million euros the previous month.

Consumer loans amounted to 15.6 million euros in September against 12.3 million euros the previous month, while housing loans increased to 102.9 million euros against 79, 2 million euros in August.

New business loans up to 1 million euros amounted to 54.1 million euros in September compared to 30.7 million the previous month, while new business loans above 1 million euros s amounted to 295.9 million euros against 132.3 million euros the previous month.

Interest rates continue to rise

Interest rates for households with maturities of up to one year rose to 0.11% in September, from 0.06% the previous month, reaching their highest level since July 2020.

Rates applied to deposits from non-financial corporations fell to 0.09% from 0.13% in September.

According to data from the CBC, interest rates on new consumer loans rose to 3.59% in September from 3.36% the previous month, the highest level since October 2018.

Interest rates on new mortgages rose to 3.06% in September from 2.56% the previous month, reaching their highest level since June 2016.

Interest rates on business loans up to 1 million euros rose to 4.13% in September from 3.85% the previous month, marking a new high since August 2016.

According to the CBC, interest rates on new business loans above €1 million rose to 3.69% in September from 3.69% the previous month.

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Kiwis turn to personal loans as interest rates rise, Centrix says https://johnhesch.com/kiwis-turn-to-personal-loans-as-interest-rates-rise-centrix-says/ Mon, 31 Oct 2022 21:13:00 +0000 https://johnhesch.com/kiwis-turn-to-personal-loans-as-interest-rates-rise-centrix-says/ An increased volume of personal loan applications suggests that Kiwis are increasingly turning to debt to finance their expenses, according to Centrix. The credit bureau’s October Credit Indicator shows that the value of new consumer loans issued in September this year was 18% higher than in September 2021. “The economic climate remains difficult for many […]]]>

An increased volume of personal loan applications suggests that Kiwis are increasingly turning to debt to finance their expenses, according to Centrix.

The credit bureau’s October Credit Indicator shows that the value of new consumer loans issued in September this year was 18% higher than in September 2021.

“The economic climate remains difficult for many Kiwis as they continue to adjust to the effects of inflation and the rising cost of living. The Reserve Bank has raised the official exchange rate for the fifth time to 3.5%, the highest level in more than seven years, and interest rates continue to climb,” said Keith McLaughlin, Centrix CEO.

“Alongside this, Statistics NZ recently reported that the cost of living for the average Kiwi household increased by 7.7% in the September quarter of 2022. This compression is reflected in borrowing as demand for credit at consumption has started to climb back to pre-pandemic levels, with personal loans rising as Kiwis turn to credit to support spending.”

According to Centrix, in September, 10.6% of active borrowers were in arrears, up 2% year-on-year. About 4% are currently more than 30 days overdue and 2.3% are more than 90 days overdue. These figures remain unchanged from month to month.

Mortgage applications and loans tend to decrease the housing market continues to weaken. Applications for home loans fell by 11% over one year. New mortgage borrowing decreased by 37%.

However, mortgage arrears edged above 1.0% for the first time in six months, with 14,600 mortgage accounts in arrears. Despite this, Centrix sees no signs of widespread mortgage stress.

Auto loan arrears improved to 4.5% this month from 4.8% the previous month, after rising for the past five months. Arrears on unsecured personal loans fell from 7.7% to 7.6%, according to Centrix.

Credit card arrears remain at record highs of 3.9%, which have been hit three times this year so far in June, August and September.

New credit card applications rose 3% year-over-year, while buy-it-now, pay-later applications fell 25%, according to Centrix.

The number of Kiwis with active credit card accounts is down 33% since 2019, and the average credit score is 824. A credit score is a number between 1 and 1000 indicating the likelihood that you will pay your bills on time.

There are nearly 2.1 million New Zealanders who have an active credit card, with 650,000 borrowers with multiple credit cards in their wallet. The average credit limit on active cards in New Zealand is $7,600, according to Centrix.

The average business credit score for new applications fell to 756. It has been falling steadily over the past six months from a high of 779 in April.

“The hospitality and construction sectors in particular are feeling the slump at the moment. Both sectors have seen an upsurge in defaults due to supply chain issues and the general slowdown in consumer spending. Overall cost increases are becoming difficult to pass on to customers who are much more aware of their expenses right now, making the continued impacts of inflation even more difficult for Kiwi business owners,” McLaughlin says.

Meanwhile, the number of households behind on utility bills has improved, falling to 3.3% of accounts in September from 3.6%.

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Set a uniform repayment term for all interest-free agricultural loans, farmers say https://johnhesch.com/set-a-uniform-repayment-term-for-all-interest-free-agricultural-loans-farmers-say/ Sat, 29 Oct 2022 02:58:00 +0000 https://johnhesch.com/set-a-uniform-repayment-term-for-all-interest-free-agricultural-loans-farmers-say/ “The Salem District Central Cooperative Bank allows a repayment term of 12 months for all interest-free agricultural loans and interest is charged only for farmers who repay after the stipulated term” “The Salem District Central Cooperative Bank allows a repayment term of 12 months for all interest-free agricultural loans and interest is charged only for […]]]>

“The Salem District Central Cooperative Bank allows a repayment term of 12 months for all interest-free agricultural loans and interest is charged only for farmers who repay after the stipulated term”

“The Salem District Central Cooperative Bank allows a repayment term of 12 months for all interest-free agricultural loans and interest is charged only for farmers who repay after the stipulated term”

A call for the Tiruchi District Central Cooperative Bank to set the repayment term for all crop loans at 12 months and complaints of theft by private fertilizer retailers and illegal gravel extraction from water bodies have been among the main issues raised by farmers during the monthly grievance meeting. here Friday.

In the meeting chaired by Collector Mr. Pradeep Kumar, R. Raja Chidambaram, Secretary of State, Tamizhaga Vivasayigal Sangam, raised the issue of repayment tenure of agricultural loans, said major agricultural cooperative societies were providing loans. loans with varying repayment terms for different crops. While the repayment term for interest-free loans for crops such as sugar cane, tapioca, turmeric, betel vine and banana was set at 12 months, farmers who used loans to grow paddy, maize, sunflower, onion and vegetables such as brinjal and ladies finger were required to repay the loans within eight months. The repayment term for cotton farmers was nine months, he said.

However, Mr. Chidambaram claimed that the Salem District Central Cooperative Bank provides a repayment term of 12 months for all interest-free crop loans and that interest is only charged for those who repay beyond the term. stipulated. The Tiruchi bank should also set the financing scale for each crop and the repayment term of all interest-free crop loans at 12 months, he said.

Earlier, in response to a question raised by P. Viswanathan, President Tamizhaga Eri Mattrum Attru Pasana Vivasayigal Sangam, an official from Department of Agriculture informed the farmers that around 16,580 farmers who suffered damage to their crops of cotton, maize and paddy in 2021-22 were sanctioned with compensation under the crop insurance scheme.

P. Ayyakannu, Chairman, Desiya Thennidiya Nadigal Inaippu Vivasayigal Sangam, complained that some of the fertilizer dealers in Gandhi Market area in Tiruchi were cheating farmers by grossly overpricing fertilizers such as gypsum and urged the collector to take action against them.

Mr Viswanathan urged the district administration to control the ‘illegal mining’ of gravel under the guise of vandalism (reservoir sediment) of certain water bodies. Mr. Pradeep Kumar ordered the Deputy Director of Mines to make an inspection and file a report. He also sought measures to capture and relocate crop raiding monkeys.

Previously, the Collector, while expressing his displeasure at the absence of the Deputy Conservator of Forests, had ordered two rangers to leave the venue of the meeting.

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