Digital Marketing Online – Zurc 2 http://zurc2.com/ Thu, 09 Jun 2022 01:00:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://zurc2.com/wp-content/uploads/2021/10/icon-9-120x120.png Digital Marketing Online – Zurc 2 http://zurc2.com/ 32 32 How just would canceling student debt be? https://zurc2.com/how-just-would-canceling-student-debt-be/ Thu, 09 Jun 2022 00:38:21 +0000 https://zurc2.com/how-just-would-canceling-student-debt-be/ It’s all about the money. (Photo by Alfred Gescheidt/Getty Images) Getty Images A debate about the 2020 elections has revived. On the internet and elsewhere, people have started debating the issue of student debt forgiveness again. Several Democratic strategists have told President Biden he could boost his low approval rating by following through on his […]]]>

A debate about the 2020 elections has revived. On the internet and elsewhere, people have started debating the issue of student debt forgiveness again. Several Democratic strategists have told President Biden he could boost his low approval rating by following through on his campaign promise to forgive much of the student debt. Aside from the usual partisan politics and spending issues, much of the argument has been about whether debt cancellation would be fair. The economy has a contribution to make here. This may show that debt cancellation would be far from fair on many levels, including the fundamental inequity built into the college debt system. It also reveals how few of the American elite think of those who are not their neighbors and their circle of friends.

Fairness arguments to date seem to focus primarily on how to treat those who have saved up for college or who have already paid off a significant portion of their debt. Some commentators have argued that the only way to put all former students on a level playing field would be to include in debt cancellation compensation for those who have paid off their debt. The counter-arguments to these questions point out that most new initiatives aimed at helping those in need do little to help those who have suffered before. Alexandria Ocasio Cortez weighed in, pointing out that not all government programs benefit everyone. While it’s hard to argue with this claim, it usually doesn’t add much to the debate and avoids the question of fairness altogether.

So far, this debate has remained remarkably narrow. No one, it seems, thought of future students. If the nation cancels the debt incurred by yesterday’s students, what should it do in fairness to those who are in high school or elementary school today? Will fairness to these future students require that in addition to canceling yesterday’s student debt, college becomes free, an extension of what is now public K- 12? This would save them from having to pay and then get the debt canceled at a later date. A full discussion of fairness should also go beyond how to distribute benefits and consider something that is often missing in such conversations: who pays.

Because the debt is owed to the government, cancellation would deprive the budget of a source of revenue. Forgiveness would then be, in one way or another, a burden on all taxpayers. Those who have already paid off their debt, if they are not compensated, would not only miss out on the benefit, but they would also see a federal budget much less able to provide other services they might need. Such a limited budget would make it difficult for others even less fortunate to advocate for the services they need, many of whom are low-income people who have never even considered college, perhaps for financial reasons. A single mother supporting her family on a meager paycheck might rather have Washington extend food stamp subsidies than forgo the earnings of former graduate students. None of these alternatives is necessarily more valid than helping students in debt, but a consideration of fairness surely demands that people consider these aspects of the matter.

Concern for fairness also requires determining who has benefited and continues to benefit from the student debt system. There, without a doubt, the answer is the universities, their faculties and their administrators. Easy student loan terms have increased college attendance. Classrooms filled up and money flowed in for tuition and fees. This flood of students and money has further allowed colleges to increase their costs much faster than anything else in society, including health care. Today, the burden of these benefits rests on the student debtors. Forgiveness would shift that burden. But the fundamental issue of equity between recipients and payers would remain. Is it fair that easy borrowing for college has burdened families and young scholars and perhaps soon all taxpayers to enrich arguably the most privileged people in society?

It’s easy to feel sorry for young people struggling with their finances, especially since many have been tricked into believing that their course of study will make it easier for them to pay off their debt than it does. ‘did. But before rushing to indulge in such pity for what is effectively at the expense of the taxpayer, it behooves all parties involved to consider globally whether the distribution of benefits is equitable and to consider whether it is just to burden other members of society who may be considerably less privileged than indebted students. Questions of equity also require answers to questions about the burden of so many for the good of a relatively small and extremely privileged group.

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Bank stocks fall as rising rates spark bad debt fears https://zurc2.com/bank-stocks-fall-as-rising-rates-spark-bad-debt-fears/ Tue, 07 Jun 2022 08:00:53 +0000 https://zurc2.com/bank-stocks-fall-as-rising-rates-spark-bad-debt-fears/ Share prices of banking giants fell sharply as the Reserve Bank surprised investors with a 0.5 percentage point hike in official interest rates and warned of further increases to come, raising fears that more borrowers face financial hardship. Fears that higher interest rates could slow the economy weighed on the equity market on Tuesday, with […]]]>

Share prices of banking giants fell sharply as the Reserve Bank surprised investors with a 0.5 percentage point hike in official interest rates and warned of further increases to come, raising fears that more borrowers face financial hardship.

Fears that higher interest rates could slow the economy weighed on the equity market on Tuesday, with the ASX 200 falling deeper into the red after the RBA’s aggressive move, closing down 1.5% .

Tuesday’s 0.5 percentage point rate hike raised fears about the risk of bad debt.Credit:Karl Hilzinger

Shares of National Australia Bank fell 3.3%, Commonwealth Bank 2.6%, Westpac 2.1% and ANZ 1.5%, while companies exposed to the housing market also fell, with REA Group down 4.2% and Domain down 2.9%. hundred.

The Australian dollar jumped in response to the RBA’s decision, rising from US71.85¢ to US72.49¢, as economists predicted the RBA would hike rates by 0.5 percentage points next month.

As of 5:45 p.m., none of the major banks had announced how they would change mortgage rates in response to the RBA’s decision.

Amid forecasts the RBA could now raise rates faster than previously thought, analysts said the fall in bank stocks reflected investor concerns over rising bad debt and a weaker market housing.

Milford Asset Management portfolio manager Will Curtayne said investors had already priced in the benefits banks are likely to derive from higher rates through wider net interest margins, but the market has now focused on bad debt risk.

“Rate hikes are initially positive because margins are increasing. But eventually rate hikes turn negative as recession fears dominate,” Curtayne said.

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More courts will deploy debt officers to connect people to resources https://zurc2.com/more-courts-will-deploy-debt-officers-to-connect-people-to-resources/ Sun, 05 Jun 2022 08:31:00 +0000 https://zurc2.com/more-courts-will-deploy-debt-officers-to-connect-people-to-resources/ A pilot program installing debt officers in courts across the country is proving helpful for people with financial problems. The judiciary hopes to implement it on a larger scale, as a step towards solving the debt problem, according to De Rechtspraak. People who get into debt often find themselves in court multiple times, coming back […]]]>

A pilot program installing debt officers in courts across the country is proving helpful for people with financial problems. The judiciary hopes to implement it on a larger scale, as a step towards solving the debt problem, according to De Rechtspraak.

People who get into debt often find themselves in court multiple times, coming back for new bills they can’t afford to pay. In an effort to break this cycle, several courts have deployed debt officers who can mediate between the court system and the city council in debt matters.

“A push for debt relief is more effective than if we see people again and again with a new summons,” court president Remy van Leest told Trouw.

People with financial problems are often unaware of the resources available to them, according to De Rechtspraak. Over the past two years, debt officers have helped 188 people by referring them to municipalities, which are responsible for helping people in debt.

Because the pilot program was successful, the Judicial Council and the presidents of the courts plan to provide debt officers in courts across the country. Currently, they are only available in the courts of Rotterdam, The Hague, Limburg, Gelderland and Amsterdam.

“Judges are not aid workers,” Van Leest told Trouw. “But the world doesn’t stop at the courthouse door. We also want to keep an eye on society’s needs.”

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How Small Businesses Can Benefit From Debt Consolidation https://zurc2.com/how-small-businesses-can-benefit-from-debt-consolidation/ Fri, 03 Jun 2022 07:33:39 +0000 https://zurc2.com/how-small-businesses-can-benefit-from-debt-consolidation/ Small businesses in Nigeria and all over the world are grappling with the problem of refinancing their already existing loans. Not only that, in tough business environments like Nigeria, many small businesses have had to take out loans in order to keep the business afloat. It sounds like a good idea in the short term, […]]]>

Small businesses in Nigeria and all over the world are grappling with the problem of refinancing their already existing loans. Not only that, in tough business environments like Nigeria, many small businesses have had to take out loans in order to keep the business afloat.

It sounds like a good idea in the short term, but macro-economic factors like inflation, which generally increase the cost of sales for these small businesses and ultimately make it difficult for these businesses to repay their loans. This is because they are small, which means they have very little leeway to pass their costs on to their customers without risking losing them to other alternative services or products or to a larger competitor who owns a very well established market share. This then affects their potential profits which would have been used to refinance their loans.

That is why in a country like Nigeria, in addition to getting loans from loan sharks, who give loans with high repayments to their customers and not to mention the recent trend of how these platforms share the personal information of those who have defaulted on their payment obligations. general public with the aim of embarrassing them to repay their loans, it is quite difficult to obtain loans at reasonable prices from banks and microfinance banks.

As a small business owner who has now taken various loans from different sources, it becomes very difficult to keep track of all this. Here’s why debt consolidation is very important for small business owners to know.

What is debt consolidation?

Debt consolidation is a smart financial strategy for small business owners who have incurred multiple debts from different sources. Consolidation merges multiple bills into one debt that is paid off monthly through a debt management plan or consolidation loan.

Debt consolidation lowers the interest rate on your debt and lowers monthly payments. This debt relief option unravels the mess that business owners face every month trying to cope with multiple bills and multiple deadlines from multiple card companies. In its place is a simple remedy; single-source payment, once a month.

How it works

Debt consolidation is the use of different forms of financing to pay off other debts and liabilities. If you are struggling with different types of debts, you can apply for a loan to consolidate these debts into one liability and pay them off. Payments are then made on the new debt until it is fully paid off.

Most people apply for a debt consolidation loan through their bank, credit union, or credit card company. It’s a good place to start, especially if you have a great relationship and payment history with your institution. If you are denied, try exploring private mortgage companies or lenders. Creditors are also willing to do so for several reasons.

For the borrower, debt consolidation maximizes the probability of collection from a debtor. These loans are usually offered by financial institutions such as banks and credit unions, but there are other companies that specialize in debt consolidation services that offer these services to the general public.

An important point to note is that debt consolidation loans do not erase the original debt. Instead, they simply transfer a consumer’s loans to another lender or type of loan. For true debt relief or for those who do not qualify for loans, it may be best to consider debt settlement rather than or in conjunction with a debt consolidation loan.

Going deeper, there are two major types of debt consolidation loans; secured and unsecured loans. While secured loans are backed by one of the borrower’s assets, such as a house or car, unsecured loans, on the other hand, are not asset backed and can be more difficult to obtain. Unsecured loans also tend to have higher interest rates and lower qualifying amounts. Regardless of the type of loan, interest rates are always generally lower than the rates charged on credit cards. And in most cases, the rates are fixed, so they do not vary over the repayment period.

Why it matters to you and your business

Debt consolidation is a great tool for people who have multiple debts with high interest rates or monthly payments, especially for those who owe N10 million or more. By negotiating one of these loans, you can enjoy one monthly payment instead of multiple payments, not to mention a lower interest rate.

As long as you don’t incur any additional debt, you can also expect to be debt free sooner. Going through the debt consolidation process can reduce calls or letters from collection agencies, as long as the new loan is kept up to date.

However, it’s important to remember that while the interest rate and monthly payment may be lower on a debt consolidation loan, its payment schedule may be another Pandora’s box you don’t want to open. Indeed, longer payment schedules mean paying more in the long run.

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MPs rejection of finance bill is good, but let’s explore ways to reduce debt https://zurc2.com/mps-rejection-of-finance-bill-is-good-but-lets-explore-ways-to-reduce-debt/ Wed, 01 Jun 2022 15:54:11 +0000 https://zurc2.com/mps-rejection-of-finance-bill-is-good-but-lets-explore-ways-to-reduce-debt/ Parliament Buildings, Nairobi. [Elvis Ogina, Standard] In a historic moment, Kenyan MPs seized the opportunity and rejected several proposals in the Finance Bill 2022. In many ways, this represents a victory for the many Kenyans who have been ravaged by an unprecedented economic downturn triggered by the Covid pandemic and a relentless rise in the […]]]>
Parliament Buildings, Nairobi. [Elvis Ogina, Standard]

In a historic moment, Kenyan MPs seized the opportunity and rejected several proposals in the Finance Bill 2022. In many ways, this represents a victory for the many Kenyans who have been ravaged by an unprecedented economic downturn triggered by the Covid pandemic and a relentless rise in the cost of living.

At the heart of the finance bill was a series of proposals to levy an excise tax on commodities that would have triggered stinging cost inflation and its socio-economic effects. This aggressive attempt to raise revenue is fueled by the need to service the public debt, which has increased almost fivefold since 2013.

The only way out of this trap lies in the very strong articulation of the political class on a clear path to drastically reduce the debt to manageable levels. A fruitful debate about reducing public debt will lead to an honest conversation about developing national fiscal policy.

In this policy, the distinction between progressive and regressive taxes should be worked out. Consumption taxes such as excise duties are a regressive tax whose primary value in economic history has been to regulate activities that may generate negative externalities such as gambling addiction and other undesirable behaviors.

However, the application of excise tax in Kenya has been divorced from this historical understanding and has simply been leveraged to extract revenue from citizens on even the most innocuous items such as bottled water. What is even more disturbing is the misunderstanding that demand for these items is inelastic – essentially that people will pay for these items at any price.

Research has demonstrated that Kenyans are price sensitive and will seek cheaper substitutes, and in some cases, such as the alcohol market, cheaper substitutes could pose serious health risks to citizens. Although the above concerns may seem serious, they do not represent the worst effects of a weak tax regime which is the destruction of the country’s production cycle.

As Kenyans seek cheaper substitutes due to excise tax inflationary pressures, they tend to find these alternatives in other jurisdictions. This is the basis of the culture of importation which has paralyzed national production.

Everything from food to drinks to clothes seems to come from outside the country, which amounts to killing jobs at home in favor of creating jobs abroad. The imbalance between imports and exports has persisted for so long that even the limited access to the dollars needed to sustain such an import culture has been the subject of recent news.

With the abundance of unused land in Kenya, as well as high levels of unemployment, policies that undermine production present a clear and present danger to the tapestry that weaves our socio-economic fabric. Ironically, while the 2022 elections were presented as a competition of economic ideas, none of the leading candidates came forward with thoughtful proposals to address Kenya’s fiscal and monetary policy. How much money does the economy need to sustain full employment?

What is the appropriate tax structure to encourage business? What is the best way to unlock all production factors? These are the real weighty questions that leading politicians have turned away from. Hopefully the next three months will be an opportunity for these issues to be at the heart of political debate and forge a new national conversation.

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DEBRA, do you remember… ACE? The Commission’s latest attempt to tackle leverage bias https://zurc2.com/debra-do-you-remember-ace-the-commissions-latest-attempt-to-tackle-leverage-bias/ Mon, 30 May 2022 15:45:03 +0000 https://zurc2.com/debra-do-you-remember-ace-the-commissions-latest-attempt-to-tackle-leverage-bias/ It has already been tried. People said it would never happen – but could things be different this time around? The European Commission has published its long-awaited proposals for a debt bias reduction allowance (or DEBRA) on May 11 (see here). Significantly, the DEBRA proposals not only imply a consideration of notional interest on equity, […]]]>

It has already been tried. People said it would never happen – but could things be different this time around?

The European Commission has published its long-awaited proposals for a debt bias reduction allowance (or DEBRA) on May 11 (see here). Significantly, the DEBRA proposals not only imply a consideration of notional interest on equity, but also include new limits on interest deductibility.

This is not the first time that the EU has tried to find a balance between the tax treatment of debt and that of equity. When the Commission relaunched its proposals for a Common Consolidated Corporate Tax Base (EXCCIS) in 2016, they included a form of equity provision (AS) in the form of a growth and investment allowance (the AGI). However, while there was some support for the ACE aspects of the CCCTB proposal, others were concerned that Member States were free to choose their own investment incentives. The AGI sank with the ACCIS project as a whole which was felt to be too ambitious a project to succeed. Six years later, is it possible that the tax landscape has changed enough and the proposals are different enough that they become reality this time around?

What is DEBRA and why is it offered?

In his Communication on business taxation for the 21st century (EU BT 21) in May 2021, the Commission explained that the current position encourages companies to finance their investments with debt rather than equity, which can “contribute to an excessive accumulation of debt with possible negative consequences for the EU as a whole”, the debt bias penalizing equity financing of innovation – an issue that has become “more pressing” with rising debt levels post-Covid.

The proposals published on 11 May 2022 show that the Commission remains keen to promote financial stability, avoid excessive recourse to debt and encourage corporate “re-shareholding”. They believe this will support sustainable growth and innovation in the EU, build resilience to unforeseen change and reduce the risk of insolvency – goals which ultimately all support EU ambition. to develop a capital markets union (CMU) able to compete with US markets at a time when one of Europe’s most developed capital markets, the City of London, is now outside the Union.

To this end, the Commission has proposed a draft directive consisting of two independent measures. The first is an allowance for notional interest on new company equity for ten years and the second is a new limitation on the tax deductibility of interest.

It applies to all taxpayers subject to corporation tax in one or more Member States, with one notable exception: financial companies. This term is broadly defined and includes credit institutions, insurers, investment firms, AIFMs, pension institutions, securitization vehicles, electronic money institutions and crypto-asset service providers. One of the reasons given for their exclusion is that their regulatory capital requirements should already prevent them from being undercapitalised. However, given the broad definition of a financial business, many excluded entities will not be subject to these regulatory capital requirements. More persuasive is the alternative explanation given, namely that such entities are unlikely to feel the effects of the limitation on the interest deduction, so it was deemed unfair for them to obtain the benefit of the deduction for equity at the expense of non-financial companies if they did not bear the economic burden of the new rules.

A provision for new equity

The “equity deduction” would be calculated by multiplying the increase in equity during a year by a notional interest rate. This notional interest rate is based on the ten-year risk-free interest rate in the taxpayer’s currency, plus a risk premium of 1%. Recognizing that small and medium enterprises (SME) generally have higher financing costs, a higher risk premium of 1.5% would apply to SMEs. An increase in an entity’s equity excludes earnings triggered by increases in the equity value of the entity’s subsidiaries, to avoid the same underlying earnings triggering an equity provision at both for the subsidiary and its parent entity.

The allowance is limited to a maximum of 30% of the taxpayer’s EBITDA (earnings before interest, taxes, depreciation and amortization) for each taxable year (this restriction is intended as an anti-abuse measure with a nod deliberate eye to existing interest limitation rules). Unused allocation above 30% of EBITDA can be carried forward for five years. To the extent that part of the allowance cannot be deducted during a tax period due to insufficient taxable profits, it can be carried forward indefinitely.

It would not be a modern tax measure without specific anti-avoidance rules, which remain a priority for the EU, and indeed the proposals include measures targeting, for example, schemes which artificially create an increase in funds through reorganizations or intra-group transfers of interests in associates.

An additional limitation on interest deductibility

The counterpart of the equity deduction is a further limitation on the tax deductibility of debt-related interest payments. Specifically, a proportional restriction will limit interest deductibility to 85% of “excess borrowing costs”. This is defined in the explanatory notes, but not in the directive itself, as interest paid minus interest received.

With regard to the interaction between this and the existing interest limitation rules under the Anti-Tax Avoidance Directive (ATAD), the explanatory notes indicate that, given the different objectives between the new rules and the current ATAD interest limitation rules, both rules would be maintained. From a compliance perspective, this adds yet another layer of complexity to tax calculations, with taxpayers having to calculate both the deductibility of excess borrowing costs under the new directive as well as any limitations on the deductibility of interest under ATAD – the higher limit (i.e. the most unfavorable for the taxpayer) applies.

Further thought will also need to be given to how the rules will interact with OECD second pillar rules providing for an overall minimum tax rate. To the extent that DEBRA provides a notional deduction, it is likely to lower the effective tax rate (TEN) for those who are able to use the new equity deduction. This could have the effect of pushing a taxpayer’s ETR below 15%, even in jurisdictions where the nominal tax rate exceeds 15%.

Will it happen?

It is by no means certain that these proposals will be adopted. These are not new ideas, various iterations of an EAC have been discussed in a European context for over a decade without being implemented. And of course, the need for unanimous support from all 27 member states is still a big hurdle to overcome.

However, the tax landscape has changed since the ACE was proposed as part of the 2016 CCCTB package. One of the reasons for the failure of the CCCTB proposals was the difficulty in reaching agreement on a common tax base , but we are now operating in a different environment and DEBRA is not tied to the latest EU proposal for a common tax base (“BEFIT”).

The OECD’s two-pillar project (which you can read more about here) has seen unprecedented levels of international cooperation. The EU hopes to build on this with its BEFIT proposal, which builds on aspects of both pillars and looks more plausible than ever.

The EU has reached agreement in record time on tax issues that would never have been thought possible before, such as DAC 6, ATAD 1 and ATAD 2, not least due to political and public pressure to promote “the ‘tax fairness’ in the EU. That said, these proposals were anti-tax avoidance measures and in the current climate it is almost impossible for Member States to oppose them. While DEBRA is not a measure to force companies to “pay their fair share”, there may therefore be more room for dissent on this initiative.

Indeed, some Member States, notably France, Germany and Italy have already raised concerns about the cost of DEBRA. Bearing this in mind, the design features of the current proposals seek to limit the loss of revenue by limiting the application of the allowance to capital increases only and by including anti-avoidance rules – perhaps by drawing on the experiences of the existing Belgian national ACE. scheme which resulted in significant revenue losses. Limiting interest deductions is also intended to mitigate revenue losses and it is clearly hoped that this will help alleviate some of these concerns.

However, while this new limitation on interest deductibility has potential benefits for Member States in terms of limiting revenue losses, this aspect of the proposal will be of concern to taxpayers who are already struggling with other rules which overlap with these proposals, such as the OECD’s second pillar. Member States may fear that this aspect of the new rules could lead to the relocation of companies outside a Member State and an erosion of its tax base. A pan-European implementation would, of course, mitigate such effects between member states, although the risk of pushing investment outside the EU would remain.

Another impediment to implementation is the thorny issue of constitutional compatibility. The existing German interest limitation rules that implement ATAD are still the subject of an ongoing constitutional challenge in German courts. Could a similar challenge undermine the new interest deductibility restriction aspects of the DEBRA proposals?

And then ?

The draft directive is open for comments until July 11. Member states will soon begin their consideration of the proposal in the Council and, while the Commission hopes to secure an agreement in the autumn, it is uncertain whether an agreement can realistically be reached by the end of the year. ‘year. If adopted as a directive, it should be transposed into the national law of the Member States by 31 December 2023 at the latest and enter into force on 1 January 2024.

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Almost half of American couples go into debt to get married, but is it a good idea? https://zurc2.com/almost-half-of-american-couples-go-into-debt-to-get-married-but-is-it-a-good-idea/ Sat, 28 May 2022 14:00:00 +0000 https://zurc2.com/almost-half-of-american-couples-go-into-debt-to-get-married-but-is-it-a-good-idea/ Almost half of American couples go into debt to get married, but is it a good idea? In the United States, the average wedding costs just under $30,000, according to a 2021 study from wedding planning site The Knot. This is quite a high price, especially when those who marry for the first time are […]]]>

Almost half of American couples go into debt to get married, but is it a good idea?

In the United States, the average wedding costs just under $30,000, according to a 2021 study from wedding planning site The Knot. This is quite a high price, especially when those who marry for the first time are on average 34 years old.

In 2021, the overall average number of guests was 105 guests at an average cost per guest of $266.

On average, couples pay around 48% of the cost of their wedding, with families typically covering the rest of the bill (52%). 49% spend more than initially planned.

Unfortunately, many couples start their wedding planning assuming they can control the costs. But one 2019 study by LendingTree found that 45% of newlyweds went into debt for their wedding.

Does that mean it’s okay to go into debt to plan the wedding of your dreams? Not according to Greg Wilson, Chartered Financial Analyst and co-founder (along with his wife) of lifestyle blog ChaChingQueen.

“So many relationships fail because of money fights. Why perpetuate the problem by going into debt together? If you can’t afford the wedding you want, then have the wedding you can afford” , says Wilson. “You can always have a much bigger birthday party later.”

Since start married life with a lot of debt isn’t fun, here are four suggestions to help you minimize the cost and maximize the fun on your big day.

Get the latest personal finance news straight to your inbox with the MoneyWise Newsletter.

Think seriously about saving

While it’s easy to look at each line item and strategize how to cut costs, a couple’s biggest hurdle is putting money aside to pay for anything.

“Preparing financially for wedding expenses means budgeting, saving money for it, and not overspending,” says Anthony Martin, CEO and Founder of Choice Mutual.

This is precisely how Kelley Skar and his wife approached planning their wedding budget. Unlike many young couples, Skar and his wife did not receive help from family members.

“We had been engaged for a year, which allowed us to save and pay cash for the whole wedding,” says Skar, an Alberta, Canada-based father, real estate agent and founder of rewrittn. So even though the whole event cost the Skars around CA$18,000, they started their new life together debt-free.

A good strategy is to open a separate account for wedding expenses. Then only deposit money designated for that event and only spend money from that account on wedding expenses.

Set a wedding budget

Saving for a wedding is essential, but so is budgeting.

“Having a maximum amount you’ll spend on your wedding can help you plan without spending too much,” says Martin.

For many, determining a total cost and figuring out what to pay for each component can be a difficult or daunting process.

“A wedding is a joyful celebration, but it’s also important for couples to keep in mind that they should only spend what they can comfortably afford for the day, rather than starting married life with an extravagance. that puts them in a financial hole,” said Carma Peters, president and CEO of Michigan Legacy Credit Union.

Peters recommends for couples overwhelmed with the wedding budget get help from a financial coach or financial planner.

“Throughout life we ​​have sports coaches, professional mentors and career coaches; why not a financial coach? Since one of the most important things in a marriage is money, it is makes sense that a couple would get help from a coach in this area.”

A financial coach can cost as little as $75 per hour. A few hours can help you establish realistic expenses and savings for your wedding, and help you avoid years of high-interest debt.

More from MoneyWise

Prioritize your wedding needs and desires

When planning your wedding, it’s easy to prioritize the enjoyment of others.

“When planning your wedding finances, always prioritize the costs that you and your partner think are most important,” says Paul Sundin, CPA and tax strategist at Estatecpa.com.

Once you know what’s important to you and your partner, you can break down how much to spend on each area and category.

“Setting a maximum budget for each category and subcategory helps prevent impulse purchases and prioritizes your spending,” says Martin.

“It’s your wedding, after all, so it’s best to decide which wedding elements are most important. That’s where you’ll spend most of your budget,” says Sundin. Even better, prioritizing your needs and wants makes it easier to start narrowing down other things since “you’ve already figured out your non-negotiables.”

Look for ways to minimize debt costs

But what if you really can’t save enough before the big day? Is it acceptable to incur a marriage debt, then? While there are schools of thought that suggest no debt is good debt, there are financial professionals who agree that debt plays an inevitable role in our lives and budgets.

For example, Keegan Schmidt worked last year with a couple who chose to go into debt of $10,000 to pay for their wedding. As a certified financial coach with Deeper Than Money, Schmidt asked the couple to walk through their money repayment plan.

“The amount of debt was intentional and planned. They chose to set aside $1,000 a month to pay off the debt interest-free in one year.”

How much debt you take on and how quickly you pay it off can only be determined on a case-by-case basis, but Schmidt is clear with her clients: “Go into debt only according to what fits your plan. .”

This means being very realistic about your budget and repayment plans.

“Nobody wants to pay for their wedding for the next three years,” Schmidt says. So when the numbers don’t match, go back to your budget and find ways to save.

One way to minimize the cost of wedding debt is to seek out interest-free loans or 0% balance transfers offered by some credit card companies.

Use one credit card – say a cash back card – to pay for all wedding expenses. Then, transfer to the 0% APR card for six to 12 months of interest-free payments, says Marina Vaamonde, founder of HouseCashin.

Keep in mind that the balance transfer will incur a fee, so you’ll need to add that cost to the budget – but a 2.5% balance transfer fee on $10,000 will cost you a lot less than if you slowly pay it back. same amount. sum on a credit card at 29% interest.

Another option is to talk to your wedding service providers to find out who offers zero or low interest payment plans, says Carter Seuthe, CEO of Credit Summit. Amortizing the repayment of a small wedding loan can be manageable, and the zero or low interest rate allows you to avoid paying extra for the privilege of a fantastic party.

“At the end of the day,” Skar says, “we have to remember that this is an expensive party for friends and family.”

Get the latest personal finance news straight to your inbox with the MoneyWise Newsletter.

— With files by Samantha Emann

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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No risk for Maldives in debt repayment: finance minister https://zurc2.com/no-risk-for-maldives-in-debt-repayment-finance-minister/ Thu, 26 May 2022 22:08:30 +0000 https://zurc2.com/no-risk-for-maldives-in-debt-repayment-finance-minister/ Finance Minister Ibrahim Ameer said there was no risk for the Maldives to repay its debt. The Minister made the statement to Parliament’s Economic Committee on Thursday, while briefing the committee on the proposed amendment to the Tourism Law to reduce land rent imposed on seaside resorts. The government withdrew the amendment on Wednesday after […]]]>

Finance Minister Ibrahim Ameer said there was no risk for the Maldives to repay its debt.

The Minister made the statement to Parliament’s Economic Committee on Thursday, while briefing the committee on the proposed amendment to the Tourism Law to reduce land rent imposed on seaside resorts. The government withdrew the amendment on Wednesday after backlash from other agencies and the public.

The minister said the Maldives will have to pay the largest amount of debt repayment in 2026. He said the government will continue to take positive steps to manage the debt adequately until then.

“Therefore, there is no risk for the Maldives to repay the debt in the near future,” he said.

The minister said that the current government is repaying the loans taken by the various governments over the years. He said that the government had taken very strong measures to pay down the debt. In this regard, last year the government sold a Sukuk and restructured its debt.

The minister said last year the government paid $192 million of the $250 million outstanding under the debt repayment amendment. The government made it much easier to pay the remaining $58 million by doing this, he said.

“The remaining $58 million, including interest payments, will be paid the first week of June. That’s $62 million. We have that money,” Ameer said.

The minister added that the amount borrowed as debt is decreasing due to the increase in GDP and government revenue of the Maldives. Therefore, debt as a percentage of GDP will continue to fall, he said.

The IMF and World Bank have ranked the Maldives among the fastest growing economies after the COVID-19 outbreak.

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Audax Private Debt Provides Financing to Support Gemspring Capital’s Investment in GoldenSource | Business https://zurc2.com/audax-private-debt-provides-financing-to-support-gemspring-capitals-investment-in-goldensource-business/ Tue, 24 May 2022 14:12:04 +0000 https://zurc2.com/audax-private-debt-provides-financing-to-support-gemspring-capitals-investment-in-goldensource-business/ NEW YORK–(BUSINESS WIRE)–May 24, 2022– Audax Private Debt has announced that as sole administrative agent and lead arranger, it has provided a unitranche credit facility to support Gemspring Capital’s (“Gemspring”) acquisition of GoldenSource Corp. (the “Company”), a provider of enterprise data management (EDM) and master data management (MDM) solutions to financial services companies worldwide. Founded […]]]>

NEW YORK–(BUSINESS WIRE)–May 24, 2022–

Audax Private Debt has announced that as sole administrative agent and lead arranger, it has provided a unitranche credit facility to support Gemspring Capital’s (“Gemspring”) acquisition of GoldenSource Corp. (the “Company”), a provider of enterprise data management (EDM) and master data management (MDM) solutions to financial services companies worldwide.

Founded in 1984 and based in New York, GoldenSource provides software that enables many of the world’s largest and largest investment banks, asset managers and capital markets services firms to manage and get insights from their data in a more streamlined way. The company’s solutions are based on its state-of-the-art data model and allow GoldenSource to manage a wide variety of critical data, including securities, customers, entities, ESG and other types of data. GoldenSource also provides cloud hosting and managed services for easy implementation and seamless ongoing use.

“The GoldenSource team has developed an industry-leading platform of scalable and mission-critical enterprise data management solutions,” said Bryant Shain, Managing Director of Audax Private Debt. “The company’s reputation for delivering high quality, insight-driven services demonstrates the value it delivers to customers, and we believe Gemspring is the perfect partner to continue supporting GoldenSource in this exciting next chapter.”

“Audax Private Debt has been a reliable and thoughtful financing partner,” said Aron Grossman, Managing Director of Gemspring Capital. “We look forward to working with the teams at GoldenSource and Audax as we continue the company’s growth trajectory.”

About Golden Source

GoldenSource is an independent provider of enterprise data management and master data management solutions for financial services clients worldwide. GoldenSource’s offerings enable clients to manage risk, comply with regulatory requirements, and control middle and back office costs through a trusted source of comprehensive and consistent information. Its products deliver critical market, referral, customer, position and transaction data to the systems that need it, such as trading, compliance, risk management, settlements and accounting. Founded in 1984, GoldenSource is headquartered in New York and has 380 employees in the United States, Europe and Asia.

For more information, please visit www.thegoldensource.com.

About Audax Private Debt

Based in New York, Audax Private Debt is a leading debt capital partner for North American middle market companies. Since its inception in 2000, Audax Private Debt has invested over $28 billion in more than 1,000 companies in support of over 260 private equity sponsors and raised over $21 billion in capital. The platform offers its clients a range of financing solutions, including first lien, senior stretch, unit, second lien and subordinated debt, as well as equity co-investments. With over 45 investment professionals and over 100 employees, Audax Private Debt offers funding security, additional investment capacity, and the experience and collaborative approach to partner with private equity firms. investment and their portfolio companies. For more information, please visit www.audaxprivateebt.com or follow us on LinkedIn.

Audax Private Debt is part of the Audax Group, a leading alternative investment manager with offices in Boston, New York and San Francisco.

Show source version on businesswire.com:https://www.businesswire.com/news/home/20220524005808/en/

CONTACT: Bryant Shain

Audax Private Debt

bshain@audaxgroup.comMedia

Sard Verbinnen & Co

Julie Rudnick/Catherine Livingston

Audax-SVC@sardverb.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK MASSACHUSETTS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT OTHER PROFESSIONAL SERVICES TECHNOLOGY OTHER TECHNOLOGY SOFTWARE FINANCE

SOURCE: Audax Private Debt

Copyright BusinessWire 2022.

PUB: 05/24/2022 10:10 a.m. / DISC: 05/24/2022 10:12 a.m.

http://www.businesswire.com/news/home/20220524005808/en

Copyright BusinessWire 2022.

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Debt restructuring teams set to get Cabinet nod this week – Reuters https://zurc2.com/debt-restructuring-teams-set-to-get-cabinet-nod-this-week-reuters/ Sun, 22 May 2022 19:30:00 +0000 https://zurc2.com/debt-restructuring-teams-set-to-get-cabinet-nod-this-week-reuters/ IMF expected to release statement on progress of technical talks with Sri Lanka soon The Central Bank said it had finalized the two sets of financial and legal advisers to negotiate with several Sri Lankan creditors and the selected parties would be subject to final approval. According to […]]]>






  • IMF expected to release statement on progress of technical talks with Sri Lanka soon

The Central Bank said it had finalized the two sets of financial and legal advisers to negotiate with several Sri Lankan creditors and the selected parties would be subject to final approval.

According to remarks by the Governor of the Central Bank, Dr Nandalal Weerasinghe, the selected groups would be sent to the first Cabinet meeting because the absence of a full Cabinet of Ministers after the violent incidents on May 9 that led the resignation of then Prime Minister Mahinda Rajapaksa delayed the final stage of the appointment process for the two specialties.

On April 9, shortly after Dr. Weerasinghe took office as the new Governor, the Central Bank issued Requests for Proposals (RFPs) from financial and legal advisers who had the professional competence and experience in dealing with sovereign lenders to restructure the country’s debt. in the event of sovereign default, the government having decided to suspend payment of the external debt on 12 April.

Although the authorities wanted to quickly appoint the experts in the two fields within two weeks, the process took longer than expected because the responses to the tenders were lukewarm during the first week, which then had to be extended for an additional week.

And then the country went even further into the abyss and anarchy with the violence that erupted on May 9 where people took the law into their own hands, prompting Dr Weerasinghe to call for political stability without which he said he would not continue in his position.

However, with the appointment of former Prime Minister and leader of the United National Party, Ranil Wickremesinghe immediately brought a semblance of stability which was further cemented with the appointment of a Cabinet, although a post of Finance Minister was still
remains vacant.

While immediate former finance minister Ali Sabry was expected to take the job, there were calls for Prime Minister Wickremesinghe to take the job given his experience and prowess in economic diplomacy. .
Meanwhile, Dr Weerasinghe briefed the public on the progress being made in negotiations with the International Monetary Fund (IMF), said Fund staff were working closely with Central Bank staff during their negotiations at the technical level which should succeed. concluded on May 24.

Dr Weerasinghe said they will provide the IMF with Sri Lanka’s reform plan for the coming year which will then be assessed by the IMF team to see if it meets their debt sustainability criteria, before proposing their own reform program for the country.

It goes without saying that Sri Lanka should engage with the IMF in a three-year program in the style of an expanded financing facility that provides a difficult economic stabilization program in the medium term.
However, it is still uncertain how long the process will take, although it is expected that a program will be finalized within the next three months before any disbursement.

Either way, the IMF is expected to issue a statement after the upcoming conclusion of its technical-level discussions with the Sri Lankan authorities.

Sri Lanka is considering a bailout worth US$3.0-4.0 billion over the three years during which the country will have to redress its balance of payments, budget deficit by raising taxes and reducing wasteful spending and subsidies, restructuring or selling loss-making state enterprises, and ensuring price stability through responsible monetary policy.


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