short term – 4 Walls And A View http://4wallsandaview.com/ Wed, 16 Mar 2022 19:00:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://4wallsandaview.com/wp-content/uploads/2021/06/icon-5.png short term – 4 Walls And A View http://4wallsandaview.com/ 32 32 Payday loans: your solution in the event of a financial crisis… but only as a last resort https://4wallsandaview.com/payday-loans-your-solution-in-the-event-of-a-financial-crisis-but-only-as-a-last-resort/ Wed, 16 Mar 2022 19:00:49 +0000 https://4wallsandaview.com/payday-loans-your-solution-in-the-event-of-a-financial-crisis-but-only-as-a-last-resort/ Pexels.com If you’re in a bind and need cash fast, payday loans might seem like the perfect solution. But before taking out a payday loan, it’s important to understand how they work and what the risks are. Payday loans are short-term loans with high interest rates that are designed to help people cover unexpected expenses. […]]]>

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If you’re in a bind and need cash fast, payday loans might seem like the perfect solution. But before taking out a payday loan, it’s important to understand how they work and what the risks are. Payday loans are short-term loans with high interest rates that are designed to help people cover unexpected expenses. They should only be used as a last resort when you have no other options available.

What are payday loans and how do they work?

Payday loans are short-term loans that are usually due on the day of your next payday. They are often used to cover unexpected expenses or to tide you over until your next paycheque. Payday loans are usually small, ranging from $100 to $500, and they come with high interest rates, usually around 400% APR. This means that if you take out a $100 payday loan, you’ll have to pay back $140 just two weeks later.

Payday loans are easy to get because no credit check is required. All you need is a stable source of income and an active checking account. The process is quick and easy – you can often get approved for a payday loan in just minutes.

The pros and cons of payday loans

There are a number of advantages and disadvantages to payday loans. On the plus side, payday loans are quick and easy to get, they don’t come with any credit checks, and you can usually have the money in your account within minutes.

In contrast, payday loans have high interest rates, they must be repaid quickly, and they can often trap borrowers in a cycle of debt. Payday loans should only be used as a last resort when you have no other options available. If you decide to take out a payday loan, be sure to read the terms and conditions carefully so you know what you’re getting into.

Merjen Novosel from PaydayNow.net identifies bad loans like bad credit payday loans, where you can get payday loans even with bad credit. “There are plenty of payday lenders who are happy to work with borrowers whose credit isn’t perfect, and there are also payday loans specifically designed for those with poor credit,” Novosel says. So if your credit score is preventing you from getting the payday loan you need, don’t worry, many lenders will be happy to help.

How to get a payday loan if you need it

If you find yourself in a situation where you need a payday loan, there are things you can do to increase your chances of getting approved. First, make sure you have all the required documents – most payday lenders will require proof of income and an active checking account. You should also take the time to shop around and compare rates from different lenders. And finally, be sure to read the terms and conditions carefully so you know what you’re getting yourself into.

payday now Payday loans can be a useful tool if used correctly, but they can also be dangerous if used incorrectly. Be sure to research payday loans before taking one and only use them as a last resort when you have no other options available.

What to do if you can’t pay off your payday loan on time

If you find yourself in a situation where you can’t repay your payday loan on time, the first thing you should do is contact your lender and try to work out a payment plan. If that doesn’t work, there are a number of other options available, including:

– Consolidate your payday loans: If you have several payday loans, you may be able to consolidate them into one loan with a lower interest rate. This can help you manage your debt more easily and get it under control.

– Refinance your personal loan: another option is to refinance your personal loan. This means taking out a new loan with a lower interest rate and using it to pay off your existing payday loans. This can help lower your monthly payments and make it easier to pay off your debt.

Debt consolidation loan: If you are having trouble repaying your payday loans, you can consider a debt consolidation loan. This is a personal loan that can be used to consolidate all of your high interest debt, including payday loans. It usually comes with a lower interest rate than payday loans and can help you get out of debt faster.

If you’re having trouble repaying your payday loan, don’t despair: there are several options to help you get out of debt. Be sure to explore all of your options before making a decision and always make sure you can afford the payments before taking out a loan.

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Developing economies must act now to mitigate shocks from conflict in Ukraine https://4wallsandaview.com/developing-economies-must-act-now-to-mitigate-shocks-from-conflict-in-ukraine/ Tue, 08 Mar 2022 22:25:11 +0000 https://4wallsandaview.com/developing-economies-must-act-now-to-mitigate-shocks-from-conflict-in-ukraine/ The war in Ukraine could not have come at a worse time for the global economy – when the recovery from the pandemic-induced contraction had begun to falter, inflation was skyrocketing, central banks in the world’s largest economies world were preparing to raise interest rates, and financial markets were hovering above a formidable constellation of […]]]>

The war in Ukraine could not have come at a worse time for the global economy – when the recovery from the pandemic-induced contraction had begun to falter, inflation was skyrocketing, central banks in the world’s largest economies world were preparing to raise interest rates, and financial markets were hovering above a formidable constellation of uncertainties.

The war has compounded these uncertainties in ways that will reverberate around the world, harming the most vulnerable people in the most fragile places. It is too early to tell how much the conflict will alter the global economic outlook. Like the novel coronavirus, the latest crisis has come in a form largely unexpected – in its scale and ferocity, in its location, and in the global response to it. Everything will depend on what happens next. But it is already clear that rising food and energy prices, along with supply shortages, will be the immediate source of suffering for low- and middle-income economies.

Many developing economies around the world remain weakened by the pandemic. The healthy recovery that advanced economies have experienced over the past year has largely ignored them: By 2023, levels of economic output in developing economies will still be 4% below their projected pre-pandemic levels. The total debt of these economies is now at its highest level in 50 years. Inflation is at its highest level in 11 years and 40% of central banks have started raising interest rates in response.

As devastating as it has been, the coronavirus pandemic has been an object lesson in the power of policymakers to respond effectively to disaster.

The Ukraine crisis could make it harder for many low- and middle-income economies to get back on their feet. In addition to rising commodity prices, spillovers are likely to occur through several other vectors: trade shocks, financial turmoil, remittances and refugee flight. The countries closest to the conflict, due to their close trade, financial and migration ties with Russia and Ukraine, are likely to suffer the greatest immediate harm. But the effects could spread far beyond that.

Food and fuel costs

Some developing economies are heavily dependent on Russia and Ukraine for food (Chart 1). These two countries supply more than 75% of the wheat imported by a handful of economies in Europe and Central Asia, the Middle East and Africa. These economies are particularly vulnerable to an interruption in the production or transport of grains and seeds from Russia and Ukraine. . For low-income countries, the disruption of supplies as well as rising prices could lead to increased hunger and food insecurity.

Russia is also a major force in the energy and metals market: it accounts for a quarter of the natural gas market, 18% of the coal market, 14% of the platinum market and 11% of crude oil. A sharp fall in the supply of these raw materials would paralyze construction, petrochemicals and transport. It would also reduce the growth of the whole economy: estimates from a forthcoming World Bank publication suggest that a 10% increase in oil prices that persists for several years can reduce the growth of economies in development importing raw materials by one-tenth of a percentage point. Oil prices have risen more than 100% in the past 6 months. If it lasts, oil could shave a percentage point off the growth of oil importers like China, Indonesia, South Africa and Turkey. Before the war started, South Africa was expected to grow by around 2% per year in 2022 and 2023, Turkey by 2 to 3% and China and Indonesia by 5%, therefore a slowdown of 1 growth point means that the growth be cut between one-fifth and one-half.

Financial turbulence

The conflict has already caused tremors in financial markets, prompting a sell-off in stocks and bonds in major global markets. An increase in investor risk aversion could lead to capital outflows from developing economies, leading to currency depreciations, falling stock prices and higher risk premia in bond markets. This would create acute stress for the dozens of highly indebted developing economies. Economies with high current account deficits or large shares of short-term debt denominated in foreign currencies would find it difficult to refinance debt. Alternatively, they would face higher debt service obligations.

Financial strains could be aggravated by central banks’ response to higher inflation. In many developing economies, inflation is already at its highest level in a decade. Further impetus from soaring energy prices could lead to an inflationary spiral as expectations of higher long-term inflation take hold. This, in turn, could prompt central banks to tighten monetary policy faster than expected so far.

Flight of refugees and remittances

Since the start of the conflict, more than 2 million people have fled Ukraine to neighboring countries, marking the largest mass migration to Europe since World War II. The United Nations High Commissioner for Refugees expects the number of refugees to climb to 4 million soon. Adjusting to the sudden arrival of large numbers of newcomers is difficult for host governments. It puts pressure on public finances and on the delivery of services, especially health care, which remain scarce as the pandemic enters its third year.

Moreover, the economic pain could radiate beyond Eastern Europe to countries that rely heavily on remittances to affected countries. Several Central Asian countries, for example, are heavily dependent on remittances from Russia – in some cases, these remittances represent up to 10% of the country’s GDP. Many Central Asian countries will likely see a drop in remittances due to the conflict.

Prevention pays

It’s time to act. The World Bank Group, together with the International Monetary Fund, is moving quickly to provide assistance to Ukraine and other affected countries. A $3 billion support package in the coming months will include $350 million for Ukraine by the end of this month. Governments in developing economies should also act quickly to contain economic risks. Building foreign exchange reserves, improving financial risk monitoring and strengthening macroprudential policies are essential first steps. Policymakers will need to be vigilant – and make careful course corrections – in their response to rising inflation. They should also begin to rebuild fiscal policy buffers depleted by COVID-19, eliminating inefficient spending and mobilizing domestic financial resources where possible. And they should strengthen the social safety nets needed to protect their most vulnerable citizens in times of crisis.

As devastating as it has been, the coronavirus pandemic has been an object lesson in the power of policymakers to respond effectively to disaster. However, prevention is better than cure. Governments in developing economies would do well to act now.

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3 debt repayment strategies that worked after being laid off https://4wallsandaview.com/3-debt-repayment-strategies-that-worked-after-being-laid-off/ Fri, 04 Mar 2022 16:26:35 +0000 https://4wallsandaview.com/3-debt-repayment-strategies-that-worked-after-being-laid-off/ When Ja’Net Adams was laid off, she used that time to clarify her financial goals. Adams then tracked every penny and built lasting habits to help him pay off $50,000 in debt. This article is part of the “Better, Smarter, Faster” series focusing on the impactful choices you can make with your money to achieve […]]]>
  • When Ja’Net Adams was laid off, she used that time to clarify her financial goals.
  • Adams then tracked every penny and built lasting habits to help him pay off $50,000 in debt.
  • This article is part of the “Better, Smarter, Faster” series focusing on the impactful choices you can make with your money to achieve big life goals.

After being laid off from her full-time job in pharmaceutical sales in the early 2000s, Ja’Net (pronounced juh nay) Adams took a hard look at his family’s finances.

She soon realized that her husband’s $25,000 student loan and high-interest car loan were preventing her family from achieving their financial goals.

“He didn’t even know he had $25,000 in student loan debt after a year of college,” Adams, CEO of Debt Sucks University and mother of two, told Insider. “He thought he got a four-year basketball scholarship, but since we’re both first-generation college students, we didn’t understand the things we were signing.”

The couple worked together to pay off $50,000 in debt in just two years. Their journey sparked in Adams, now 40, a lifelong passion for teaching personal finance to people who feel like they’re going to be in debt for the rest of their lives.

Here are three strategies Adams used to get out of debt.

1. She started with a “dream sheet”

Adams suggests people create a “dream sheet” and write down a list of short-term (six to 12 months), intermediate (three to five years), and long-term (10 to 15 years) goals.

“The day I got fired, I said, ‘I don’t ever want to feel like this again,'” Adams said. “The dream sheet kept me focused whenever something happened with the car, or whenever there was an emergency.” Instead of panicking about money, Adams was able to stay grounded and focused on her future goals.

His original dream sheet mentioned a trip to Europe with his family under intermediate goals. Since then, Adams has taken his family on trips to Costa Rica and visited Barcelona, ​​Paris and London.

2. She tracked every penny and cut her spending

The first four months of layoff “was just survival mode,” Adams says. She tracked every penny her family spent so she could cut back on discretionary spending like dining out and shopping.

“In one phone call, we lost 60% of our income, a car, our health insurance, and we also had a one-year-old child at home,” she says. She needed to get some insight into her family’s drinking habits to figure out what she didn’t need. She was also able to save an additional $400 per month by reducing her cable and cell phone service and her home insurance.

Because Adams worked as a pharmaceutical sales rep, she and her family had a premium health insurance plan as part of her benefits package. After being laid off, Adams enrolled her family in Obamacare for free health insurance to cut costs.

3. She got back to work as soon as possible

“We kept our one-year-old at daycare because I needed to look for work,” she says. Adams soon found another job selling pharmaceuticals, starting with a base salary of $45,000 plus bonuses, which amounted to about $65,000 a year. Soon after, she took on a new role that was bringing in $65,000 a year plus bonuses.

Since her bonus structure was based on the amount of her sales, she became more assertive in closing deals. It helped her increase her income, spend more money on paying off her debts, and open a savings account for her son, a short-term goal on her dream sheet.

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Some domestic violence survivors are still paying their abusers’ student loan debt https://4wallsandaview.com/some-domestic-violence-survivors-are-still-paying-their-abusers-student-loan-debt/ Mon, 28 Feb 2022 23:06:46 +0000 https://4wallsandaview.com/some-domestic-violence-survivors-are-still-paying-their-abusers-student-loan-debt/ Angela Littwin, Ronald D. Krist Professor of Law at the University of Texas at Austin Law SchoolNearly 30 years ago, a federal law allowed married couples to consolidate their federal student loan debt through a short-term US Department of Education (ED) program. Couples who participated in the now-defunct program, which ran from 1993 to 2006, […]]]>

Angela Littwin, Ronald D. Krist Professor of Law at the University of Texas at Austin Law SchoolNearly 30 years ago, a federal law allowed married couples to consolidate their federal student loan debt through a short-term US Department of Education (ED) program. Couples who participated in the now-defunct program, which ran from 1993 to 2006, became jointly and severally liable for reimbursement. Yet today, domestic violence survivors who participated in the program may still have to pay their abusers’ loans. A proposed bill in Congress could change that.

“When people think of domestic violence, they often think of physical violence, primarily because the dangers to physical safety are very real,” said Monica McLaughlin, director of public policy at the National Network to End Domestic Violence (NNEDV ), a nonprofit organization that advocates to stop domestic violence. “But one of the ways to ensure control over a survivor is through economic abuse.”

Over 14,000 borrowers have participated in the ED program. But untangling consolidated loans can be especially difficult for victims of domestic violence when the other borrower is their abuser. Domestic violence advocates and experts point out that consolidated debt can be a form of economic abuse. Financial abuse occurs in about 99% of domestic violence cases, according to a study from the Center for Financial Security at the University of Wisconsin-Madison.

“A colleague of mine would say survivors were showing up at shelters with just the clothes on their backs, but now they’re showing up with the clothes on their backs and crippling debt with low credit scores,” McLaughlin said. “That is often the case. And it can devastate the rest of their lives.

She pointed out that an average of three women a day are killed by a current or former intimate partner across the country. The National Survey of Intimate Partners and Sexual Violence, developed by the Centers for Disease Control (CDC), also found, based on 2010 data, that people facing food or housing insecurity are more vulnerable to abuse. McLaughlin highlighted the links between physical violence and economic insecurity.

Angela Littwin, Ronald D. Krist Professor of Law at the University of Texas at Austin Law School, studies consumer debt and domestic violence with Dr. Adrienne Adams, assistant professor of ecological/community psychology at Michigan State University. She explained that economic abuse can take two forms: financial restriction (ie prohibition from working) and financial exploitation.

“The behavior of consolidated student loans would amount to economic exploitation to make you responsible for a debt that is not yours,” Littwin said. “Partners can do this through coercive control. And bankruptcy is not even an issue because student loans are very difficult to repay in bankruptcy.

But in April 2021, members of Congress introduced a bipartisan bill to help borrowers break consolidated federal student loans in cases of domestic violence or divorce. Representative David Price of North Carolina was one of the members of Congress to introduce the bill, called the Joint Consolidation Loan Separation Act.

“The Joint Consolidation Loan Separation Act was created in direct response to my constituent’s experience with a damaging joint consolidation loan,” Price said in an email to Miscellaneous. “Unfortunately, borrowers nationwide remain responsible for their potentially abusive or uncommunicative former partner’s share of their consolidated debt. In the absence of legal options for relief, as in the case of my constituent, this Debt can be crippling. My colleagues and I were thrilled to reintroduce this common-sense, bipartisan legislation — congressional action to address this issue is long overdue.”

If passed, the bill would allow two borrowers to submit a joint application to ED to unravel the consolidated loan into two separate loans. It would also allow a borrower to submit a separate application if they face domestic or economic abuse from the other borrower. Similarly, the bill would allow a borrower to file a request if the person cannot reasonably reach or access the other borrower’s loan information.

“There’s not a huge universe of people who were part of this program, but it illustrates what’s happening in so many other economic areas of domestic violence survivors’ lives,” McLaughlin said. “You think about all the ways you intertwine your life with another person’s life in an intimate relationship, and untangling it is very difficult.”

Rebecca Kelliher can be reached at rkelliher@diverseeducation.com.

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Types of Loans You Need to Get Out of Your Financial Troubles Faster https://4wallsandaview.com/types-of-loans-you-need-to-get-out-of-your-financial-troubles-faster/ Mon, 14 Feb 2022 16:37:52 +0000 https://4wallsandaview.com/types-of-loans-you-need-to-get-out-of-your-financial-troubles-faster/ Posted on Monday, February 14, 2022 at 11:37 a.m. Join AFP’s more than 100,000 followers on Facebook Buy an AFP subscription Subscribe to AFP podcasts on Apple podcast, Spotify and pandora News, press releases, letters to the editor: augustafreepress2@gmail.com Advertising inquiries: freepress@ntelos.net (© Panumas – stock.adobe.com) At some point, you went bankrupt and felt like […]]]>
instant loans
(© Panumas – stock.adobe.com)

At some point, you went bankrupt and felt like there was no way out of the mess you were in. You might have wanted to pay big bills such as electricity, rent or maybe your car broke down and needed a quick fix, but there seemed to be no light at the end of the day. tunnel.

So, if you are in a financial crisis, don’t panic. This article will share some of the instant loans you need to have a positive turnaround in your financial journey.

Types of Loans You Need to Get Out of Your Financial Troubles Faster

1. Payday Loans

Payday loans are a blessing as they offer short term loans that help you meet your financial challenge by securing instant loans. The best part is that it doesn’t require a good credit score or a credit check. Likewise, you don’t have to offer anything as collateral to secure these loans. However, you must ensure that you benefit from your paycheck so that they can be sure that you are able to repay on time (to be paid the next payday).

However, getting payday loans is not all rosy as it comes with massive interest rates, often ridiculous for a short-term loan. But overall, it’s a useful loan that can come in handy when your financial weight is too much to handle.

2. Consolidation Loans

Consolidation loans are specially designed for people in crisis. They need to review their finances, reduce their periodic payments and consolidate their debts into one loan.

Similarly, consolidation loans can be used to pay off contemporary store credit cards, resulting in benefits such as interest-free intervals on the current balance and low rates that will increase over time.

3. Business Loans

Business loans are supposed to be a quick fix for all business people. However, depending on the financial institutions, guidelines and requirements may differ when it comes to loan options. This means that a financial institution’s demands will vary from time to time.

If you are interested in a business loan, you will need to contact them about your business situation and then be sure to provide adequate details and information regarding the agreement. Otherwise, whenever you hit a snag, this is an exceptional business loan that every entrepreneur should consider.

4. Personal loans

Personal loans are simply credit unions or bank loans that lure people in with low interest rates that are massively better than most loans acquired elsewhere. Personal loans allow you to obtain up to $30,000 repayable in 12 to 84 months, depending on the grantor’s loan policy.

And unlike other loans, personal loans don’t require you to provide collateral before you are offered the loan. Likewise, they have flexible repayment terms, which means you can talk to the settlor if you need more time to pay off your loan.

5. Pawnbrokers

Pawnshops are also great ways to get instant loans. You only need to provide an item of value, such as an electronic device or jewelry, to access a loan that is significantly less than the value of the item you provide.

However, each pawnshop has its loan policy and interest rates. So, depending on where you take your valuables, the interest rates can be favorable or ridiculous. Similarly, pawnshops won’t return your item to you until you’ve paid the full price and met the terms and conditions of the loan you’ve agreed to.

6. Unsecured Personal Lines of Credit

Unsecured personal loans are great ways to get cash and use it to buy anything you want. However, you cannot use this loan to acquire vehicles, real estate and properties. Also, getting this loan is easy because the qualifying criteria doesn’t pay much attention to your bad credit rating and doesn’t require any collateral before offering you a loan.

An unsecured loan can cover many family expenses and emergencies. Banks usually give out unsecured loans when people don’t meet the specific criteria they need, so it’s better than nothing. So, if you find it difficult to get a loan when you are in financial crisis, apply for unsecured loans.

7. Securities Lending

Securities lending come in handy when you own a motor vehicle and want a quick loan. The loan allows you to borrow 50% or 25% of the value of your vehicle. The loan amount depends on the lender. Typically, you’ll have to pay the loan back in 15-30 days, and if you default, they’ll take your car.

The truth is, title loans still have alarmingly huge annual interest rates, and you don’t get your vehicle back, at least not until you finish paying the full amount and interest rates. agreed interest.

Conclusion

The truth is, the world has grown, the 90s mindset is gone, and now more than ever, there are plenty of ways to get loans. Be it long-term or short-term loans, they are easy to obtain after in-person visits to the bank or online.

However, every loan deal has a catch, whether it’s fees, interest rates, or ridiculous collateral that goes unpaid unless you pay your loan fees. We recommend using Viva Payday Loans as they have low interest rates and are issued without a thorough credit check.

History of Denzil Otieno

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augusta free press

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These 4 measures indicate that Trident (NSE: TRIDENT) uses debt safely https://4wallsandaview.com/these-4-measures-indicate-that-trident-nse-trident-uses-debt-safely/ Thu, 10 Feb 2022 04:14:37 +0000 https://4wallsandaview.com/these-4-measures-indicate-that-trident-nse-trident-uses-debt-safely/ Warren Buffett said: “Volatility is far from synonymous with risk. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. Above all, Trident Limited (NSE: TRIDENT) is in debt. But should shareholders worry about its […]]]>

Warren Buffett said: “Volatility is far from synonymous with risk. So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. Above all, Trident Limited (NSE: TRIDENT) is in debt. But should shareholders worry about its use of debt?

When is debt a problem?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. The first step when considering a company’s debt levels is to consider its cash and debt together.

See our latest analysis for Trident

What is Trident’s debt?

The image below, which you can click on for more details, shows that as of September 2021, Trident had a debt of ₹13.3 billion, up from ₹8.95 billion in a year. However, since he has a cash reserve of ₹3.98 billion, his net debt is lower at around ₹9.29 billion.

NSEI: TRIDENT Debt to Equity February 10, 2022

How healthy is Trident’s balance sheet?

The latest balance sheet data shows that Trident had liabilities of ₹16.2 billion due within a year, and liabilities of ₹6.71 billion falling due thereafter. As compensation for these obligations, it had cash of ₹3.98 billion as well as receivables valued at ₹4.81 billion due within 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables by ₹14.1 billion.

Considering that Trident has a market capitalization of ₹299.3 billion, it is hard to believe that these liabilities pose a big threat. However, we think it’s worth keeping an eye on the strength of its balance sheet, as it can change over time.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Trident’s net debt is only 0.67 times its EBITDA. And its EBIT easily covers its interest charges, which is 13.7 times the size. One could therefore say that he is no more threatened by his debt than an elephant is by a mouse. Even more impressive is that Trident increased its EBIT by 168% year-over-year. This boost will make it even easier to pay off debt in the future. The balance sheet is clearly the area to focus on when analyzing debt. But it is future earnings, more than anything, that will determine Trident’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past three years, Trident has recorded free cash flow of 70% of its EBIT, which is about normal, given that free cash flow excludes interest and taxes. This free cash flow puts the company in a good position to repay its debt, should it arise.

Our point of view

Fortunately, Trident’s impressive interest coverage means it has the upper hand on its debt. And this is only the beginning of good news since its EBIT growth rate is also very encouraging. Overall, we don’t think Trident is taking bad risks, as its leverage looks modest. The balance sheet therefore seems rather healthy to us. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. We have identified 3 warning signs with Trident, and understanding them should be part of your investment process.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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The most important thing you need to get through a stock market correction https://4wallsandaview.com/the-most-important-thing-you-need-to-get-through-a-stock-market-correction/ Sun, 06 Feb 2022 12:36:00 +0000 https://4wallsandaview.com/the-most-important-thing-you-need-to-get-through-a-stock-market-correction/ Many people entered 2022 thinking the stock market was heading for a full-blown crash. And so far, that hasn’t happened. But it has been a volatile number of weeks for equities, with the market plunging into correction territory. And at this point, it’s hard to predict when things will calm down. While some of the […]]]>

Many people entered 2022 thinking the stock market was heading for a full-blown crash. And so far, that hasn’t happened.

But it has been a volatile number of weeks for equities, with the market plunging into correction territory. And at this point, it’s hard to predict when things will calm down.

While some of the recent volatility we’ve seen can be attributed to earnings disappointment and unemployment news (in a somewhat surprising turn of events, stocks fell on the back of positive growth in employment), the reality is that the shares were due for a correction for some time. And also, corrections are actually quite common, and many seasoned investors know not to get rattled.

Image source: Getty Images.

If you are a new investor, or a naturally capricious investor, the events of the past few weeks could shake you to the core. And you can also worry about future volatility. But while it’s hard to predict when the value of stocks will drop, it’s easy to take one key step to protect against market corrections.

Get ready to ride these waves

The only important thing to tell yourself during a stock market correction is that you won’t lose money unless you sell assets for less than you paid. To put it another way, if you leave your stocks alone during periods of volatility, you might not lose a penny.

But to put yourself in a position where you’re able to do that, you’ll need to make sure you have enough cash on hand. That way, if unexpected expenses come your way or you lose your job, you won’t have to rush to cash in on investments to find the money you need.

That’s why, as a general rule, it’s a good idea to accumulate three to six months’ worth of bills in a savings account. Although you won’t earn much interest on that money (especially not these days), you’ll be securing your capital so it’s there when you need it. And while you could technically keep that money in your brokerage account uninvested, you’re better off stashing it in savings so you’re not tempted to buy stocks with it when market conditions turn favorable.

And to be clear, a stock market correction is actually a great time to add investments to your portfolio – but you shouldn’t use your emergency cash to do so. On the contrary, you should always keep this cushion, because it can not only help you avoid debt, but also avoid capital losses.

Will stocks calm down soon?

It’s hard to say. We are still in the midst of a pandemic, and that alone could lead to prolonged volatility. And so, the best way to lighten your personal stress load in the short term is to keep your emergency fund well-stocked. That way, if the market continues to swing wildly, you’ll be able to sleep at night knowing you’re covered and won’t have to mine your portfolio at the worst possible time.

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The man was living on white bread to qualify for a home loan, then his pre-approval was withdrawn anyway https://4wallsandaview.com/the-man-was-living-on-white-bread-to-qualify-for-a-home-loan-then-his-pre-approval-was-withdrawn-anyway/ Wed, 02 Feb 2022 16:00:00 +0000 https://4wallsandaview.com/the-man-was-living-on-white-bread-to-qualify-for-a-home-loan-then-his-pre-approval-was-withdrawn-anyway/ Deep Singh lived off white bread for months to qualify for a home loan under the government’s tough new lending rules. The Wellington man says he ate once a day – losing 8 kilograms in the process – and worked seven days a week at two jobs. He shut down his social life, only going […]]]>

Deep Singh lived off white bread for months to qualify for a home loan under the government’s tough new lending rules.

The Wellington man says he ate once a day – losing 8 kilograms in the process – and worked seven days a week at two jobs. He shut down his social life, only going out to attend house tours.

The bank, he knew, would look into his statement and payslips once he made an offer on a house, under controversial new requirements under the Credit Agreements and Finance Act (CCCFA), which has seen banks take an ultra-cautious approach to lending, reject home loans for expenses like Uber eats Where therapy.

“I had to limit my spending and a loaf of white bread costs $1,” the first-time home buyer explained.

But hours before Singh was considering bidding on his dream home, ANZ canceled his pre-approval for a different reason.

Deep Singh was hours away from making an offer on this home - in the Upper Hutt suburb of Elderslea - when ANZ canceled pre-approval on his home loan.

Jericho Rock-Archer / Stuff

Deep Singh was hours away from making an offer on this home – in the Upper Hutt suburb of Elderslea – when ANZ canceled pre-approval on his home loan.

READ MORE:
* First home buyer says he ‘lived like a hermit’ to get approval under new mortgage rules
* Dreams shattered as home loan approvals plunge after changes to lending law
* Kiwibank withdraws low deposit home loan pre-approvals

The bank told him in an email that it had to comply with “tightened Reserve Bank (RBNZ) rules” for low-deposit loans.

“I begged them to extend it, even by just one day – they said they couldn’t,” Singh said.

The RBNZ requirements came into effect on November 1, reducing the availability of low-deposit mortgages and requiring banks to lend no more than 10% of new loans to people with less than 20% deposit.

Singh’s pre-approval was based on a 10% deposit – and was granted at the end of October, days before the new rules came into effect.

Briar McCormack, ANZ’s senior director of external communications, said the bank wanted to honor the deal but was having a hard time.

Demand for low-deposit loans soared after RBNZ rules came into effect, with pre-approvals being converted to settlement “at around 125% of historic rates” in December and January, she said. declared.

This meant that, to comply with the new regulations, ANZ had to “suspend a small number of existing pre-approvals” for low-deposit loans. “For a very small group of customers whose pre-approvals expired before February 1, we unfortunately withdrew those pre-approvals in mid-January,” McCormack said.

ANZ withdrew pre-approvals

David White / Stuff

ANZ withdrew pre-approvals “for a very small group of customers” due to increased demand following tighter Reserve Bank rules.

For Singh, the timing was tight. Its pre-approval was not due to expire before the end of the month, and ANZ had given no indication that it would cancel sooner.

He was aggrieved to barely miss a rare opportunity: a two-bedroom house within budget and within walking distance of his family in Upper Hutt. “It was a perfect opportunity – I literally could have dropped by and visited my niece and nephew.”

And the starvation months were “wasted efforts”, Singh said.

McCormack was surprised that Singh “felt the need to drastically cut expenses”.

JOHN BISSET/STUFF

Timaru man Samuel Pearce discovered that getting a mortgage and buying a house is no small feat.

“Unless the client’s financial situation changes significantly before they withdraw their loan, we generally wouldn’t need to reassess affordability after giving pre-approval,” she said.

Financial Advice New Zealand’s managing director, Katrina Shanks, was not surprised. The membership organization received 300 responses in two days from mortgage advisers who had seen a change in the availability of credit for their clients. And that anecdotal evidence was now backed up by hard data.

Credit reporting agency Centrix analyzed the figures and found that the proportion of successful home loan applications had fallen from 36% to just 30% since the lending rules came into force. And earlier this week, RBNZ reported that lending across the board fell by $1 billion.

“It indicates that the CCCFA is making it much more difficult for the average Kiwi to get a mortgage,” Shanks said.

Originally, the CCCFA was presented as a way to protect low-income borrowers from unscrupulous loan sharks. The RBNZ changes, meanwhile, were aimed at curbing house price inflation.

Economist Shamubeel Eaqub said the two policies were designed to “reduce risky lending”.

By design, this meant that low-to-moderate income people “would have a much harder time borrowing money.” Lending restrictions could, however, “break an addiction to cheap credit,” Eaqub said. “Unfortunately, this will hurt young people and first-time buyers.”

The solutions for these groups were longer: more houses, greater density, better infrastructure, affordable housing. There were no satisfactory short-term solutions. “It’s extremely unfair and illustrates how broken our housing system is,” he said.

Deep Singh skips meals - and eats white bread when he eats - in order to qualify for a home loan.  He doesn't know how much longer he can last.

Jericho Rock-Archer / Stuff

Deep Singh skips meals – and eats white bread when he eats – in order to qualify for a home loan. He doesn’t know how much longer he can last.

Trade and Consumer Affairs Minister David Clark said anecdotal evidence suggested the CCCFA had posed “a greater challenge for some parties”.

He ordered an investigation into the impact of tougher new lending laws.

Meanwhile, Singh continues to skip meals as he seeks pre-approval for a new loan. He earns $150,000 a year, yet BNZ, Kiwibank and TSB said no. Even second-tier lenders – with higher interest rates – are reluctant to lend.

ANZ says it will again provide pre-approvals for low deposit loans as soon as “as soon as we can”.

Singh thinks saving a 20% down payment could take years. He doesn’t know if he can last that long.

“Even last night, I didn’t have a meal. I didn’t have breakfast this morning,” he said. “Whenever I feel like I’m ready, the goal posts move away.”

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AT&T opts to spin off WarnerMedia in Discovery merger and cuts dividend https://4wallsandaview.com/att-opts-to-spin-off-warnermedia-in-discovery-merger-and-cuts-dividend/ Tue, 01 Feb 2022 15:33:00 +0000 https://4wallsandaview.com/att-opts-to-spin-off-warnermedia-in-discovery-merger-and-cuts-dividend/ Feb 1 (Reuters) – AT&T Inc (TN) said on Tuesday it will spin off from WarnerMedia in a $43 billion deal to merge its media properties with Discovery Inc (DISCA.O) and will also reduce its dividend of almost half. AT&T shareholders will own 71% of the new Warner Bros. Discovery and will receive 0.24 shares […]]]>

Feb 1 (Reuters) – AT&T Inc (TN) said on Tuesday it will spin off from WarnerMedia in a $43 billion deal to merge its media properties with Discovery Inc (DISCA.O) and will also reduce its dividend of almost half.

AT&T shareholders will own 71% of the new Warner Bros. Discovery and will receive 0.24 shares of Warner Bros. Discovery for every AT&T stock they hold. AT&T will have 7.2 billion diluted shares outstanding after the transaction closes.

The American telecommunications group will pay a dividend of $1.11 per share, against $2.08 per share. That’s on the lower end of an $8 billion to $9 billion range that AT&T had predicted earlier.

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AT&T shares fell nearly 5% at the open.

The deal to unwind AT&T’s $85 billion purchase of Time Warner was announced early last year, but some financial details weren’t disclosed until Tuesday.

“Rather than trying to account for short-term market volatility and deciding where to allocate value in the stock trading process, derivative distribution will let the market do what markets do best,” said John Stankey, CEO of AT&T. said in a prepared statement.

“We are confident that both stocks will soon be valued based on the strong fundamentals and attractive outlook they represent.”

AT&T plans to spend about $20 billion in capex this year to further invest in fiber to home broadband internet services and expand its 5G wireless footprint.

The transaction will help reduce AT&T’s heavy debt load. It ended the fourth quarter with net debt of $156.2 billion, giving it a net debt to adjusted EBITDA ratio of about 3.22 times.

AT&T said it expects the leverage ratio to fall to 2.5x by the end of 2023 and would consider stock buybacks if the ratio is further reduced.

Warner Bros. Discovery will catch up to its biggest streaming video rival, Netflix, even though WarnerMedia’s HBO Max grew faster in the US in the fourth quarter, ending the year with 74 million subscribers.

But the merger, which is expected to close in the second quarter, will materialize just as Netflix shows signs of maturity. Read more

Netflix’s surprisingly weak forecast for the first quarter of the year spooked media investors, triggering an industry-wide sell-off.

Walt Disney Co’s (DIS.N) financial results due next week will provide another indicator of the vitality of the streaming business as analysts question whether the industry-wide reorganization to focus on video streaming will pay off in the long run.

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Reporting by Kenneth Li; Editing by Jane Merriman and Bernadette Baum

Our standards: The Thomson Reuters Trust Principles.

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Surrey County Council changes ‘reckless’ debt repayment strategy as value of property portfolio plummets https://4wallsandaview.com/surrey-county-council-changes-reckless-debt-repayment-strategy-as-value-of-property-portfolio-plummets/ Thu, 27 Jan 2022 15:57:30 +0000 https://4wallsandaview.com/surrey-county-council-changes-reckless-debt-repayment-strategy-as-value-of-property-portfolio-plummets/ SURREY County Council is changing its debt repayment strategy after auditors called it ‘reckless’. The council had not earmarked money from its budget to repay £233million in loans borrowed from the government for its commercial property investments across the country. He counted on the sale of the property if necessary. But it emerged the council’s […]]]>

SURREY County Council is changing its debt repayment strategy after auditors called it ‘reckless’.

The council had not earmarked money from its budget to repay £233million in loans borrowed from the government for its commercial property investments across the country.

He counted on the sale of the property if necessary. But it emerged the council’s wallet was worth almost a quarter less last year than it paid for.

Mark Hak-Sanders, Strategic Finance Business Partner, said: “Our strategy for 2021 did not include any minimum income provisions for these loans, so we have not set aside any funds to repay this debt.

“The logic behind this was that if we had to pay off a debt as a county, we would be able to realize capital income from the sale of these investment properties to provide the money we needed to pay off the loan. .”

When Grant Thornton checked this policy, they said that although it complied with the law, they considered it “reckless”.

Mr Hak-Sanders said: ‘I would say it was with some hindsight.

“We set the policy before Covid-19 had a ripple effect on investment property values, and effectively Grant Thornton was auditing that a year later with the benefit of another year of reduction in those values ​​of investment properties.

“Nevertheless, we understood their point of view and we accepted that politics could be more cautious.”

The County Council is to change its policy so that from 2022/23 a minimum amount will be deducted annually from their revenue account on all loans, including those made to its subsidiaries investing in property outside the county.

The government plans to make it a legal obligation from 2023.

The current year introduced a policy where it would only do so when a property’s market value was no longer sufficient to cover the outstanding loan, which Grant Thornton concluded was “no longer unwise, but optimistic”.

Councilor David Lewis, chair of the board’s audit and governance committee, said: ‘I think, hoping to speak on behalf of the committee, that we welcome the change to the strategy of providing minimum income. It is good to see that it has now been adopted.

At the end of March 2021, Surrey County Council’s Halsey Garton property portfolio was valued at £78m below cost.

Commercial properties owned by the council’s subsidiary, Halsey Garton Property Ltd, are now valued at £251.25million, a reduction of 24%.

The loss in value would be “largely due to pressures on the retail environment”, the portfolio comprising 37% of retail businesses.

The board will now set money aside each year to be able to repay the debt associated with these investments, aligning its policy with Grant Thornton’s guidance.

Mr Hak-Sanders said: “We need to look at the overall return and not just the return on capital – these properties, especially those showing a reduction in their capital value, are still making a significant contribution to the revenue budget and continue to do so as long as we hold them.

Anna D’Alessandro, corporate and commercial finance director, said the portfolio generates £8.5 million of net income for the council each year and stressed the loss was unrealised.

“Equity value only affects us if we choose to sell the asset, and we have no intention of doing so,” she said.

Mr Hak-Sanders added: “These investments are held for long-term return and although there may be fluctuations in the value of this portfolio, there is every reason to expect that it will recovers in the medium term.”

“Providing society with a return to previous patterns of behavior,” said Cllr Lewis.

“But I think what we are seeing as a result of the last two years is that life in the future is probably very different and that could have an impact in terms of demand for commercial real estate and retail. .

“It seems to me that we live in quite uncertain times. We have inflation rising quite rapidly to sort of 30-year highs and we don’t really know where we are with the pandemic. »

A separate Halsey Garton portfolio of 72 residences recorded a loss of £30,000 last year.

Strategic finance business partner Paul Forrester said this represented the company being in its early stage and only going to market for eight months and the outlook was positive.

Asked what they thought was the biggest risk to the board, Hak-Sanders said interest rates.

The council’s £1.95bn capital program requires it to borrow £1.3bn over the next five years.

Its level of borrowing as a proportion of what it spends is increasing – from around 2% this year to 6% in 2026/7.

Mr Hak-Sanders said this is similar to the 7% for comparable local authorities, adding that there is an interest rate reserve of £1.6m which could cover short-term rate increases .

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