Category: Debt consolidation

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The Ministry of Finance has authorized 146 million debt to 14 local authorities in 2010, 53% more than in 2009

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The Ministry of Finance of the Junta de Castilla y León, which runs Pilar del Olmo, has allowed fourteen local authorities in the region to borrow 146 million euros in 2010, an amount that represents an increase of 53 percent over the previous exercise.

The Ministry of Finance of the Junta de Castilla y León, which runs Pilar del Olmo, has allowed fourteen local authorities in the region to borrow 146 million euros in 2010, an amount that represents an increase of 53 percent over the previous exercise.

This year was the third year in which the community exercised financial protection of the municipalities, which previously depended on the Ministry of Economy and Finance. Castilla y León is one of the nine autonomies that have transferred this competence, which was assumed on December 1, 2007.

The Law of Budgetary Stability obliges the councils, town councils and smaller entities to approve, execute and liquidate their budgets in balance or in surplus. Hence, when they incur a deficit or exceed the percentage of 125% of their current income they need permission to contract loans.

In Castilla y León, the autonomous government is in charge of authorizing these operations, as well as in Andalusia, Aragon, Asturias, the Balearic Islands, Catalonia, Galicia, La Rioja and Valencia, according to Europa Press sources from the regional Administration.

The Ministry of Finance assumed the financial tutelage of local entities on December 1, 2007, with the entry into force of the latest reform of the Statute of Autonomy, which regulates it in its Article 54. Consequently, from January 1 2008 The Board is responsible for evaluating that local entities meet the objective of budgetary stability, as well as to monitor the economic-financial plans that must be prepared when they incur a deficit.

The competition is exercised through the General Directorate of Autonomous Financing in coordination with the General Treasury, headed by Agustín Manzano and Fernando Vallelado, respectively. As a result of its management, 13 municipalities and a smaller entity from all the provinces of the community have obtained permission to access credit financing in 2010.

The largest amounts have been authorized to the municipalities of four provincial capitals, Valladolid, Burgos, Salamanca and Palencia. The minor has corresponded to the Valladolid town of Villalba de la Loma, of 54 inhabitants, which has been granted an authorization of 12,189 euros to pay for paving and water supply works.

The amount of the debt of municipalities and councils processed by the Board has risen 53% compared to 2009, which stood at 95.4 million. This increase has its origin in the decrease in tax revenues, which has led local entities to be forced to resort to a greater extent to borrowing to finance their investments.

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Changes in state legislation

On the other hand, in 2010 there have been changes in the State legislation that have caused insecurity in those responsible for the municipal haciendas. The main one has been the approval of Royal Decree Law 8/2010, of May 20, which adopted extraordinary measures to reduce the public deficit. One of them was that local entities were prohibited from borrowing until December 31, 2011.

At first it was announced that this restriction would take effect on May 24, a decision that was later postponed to January 1, 2011. Due to this, during the third quarter of 2010 the municipalities, councils and minor entities interested in achieving the permission to contract credits before the end of the year.

Subsequently, the Draft Law of General State Budgets for 2011 introduced a new modification in this matter. Specifically, it lifted the ban for those local entities that borrow up to 75% of their current income, provided that they liquidate the 2010 Budget with surplus.

The uncertainty caused by these legal changes has caused the Ministry of Finance has attended around a hundred of consultations-more than double than in 2009, which in turn have led to initiate 44 cases of which 16 culminated in authorizations. The fact that not all have come to fruition is mainly due to the fact that there were entities that gave up when it became known that it would be possible to borrow in 2011 if certain requirements were met. 367.7

Millions of debt in three years

The first authorization of indebtedness was granted on March 4, 2008 to the Neighborhood Board of Quintana de Valdivielso (Burgos), a small town of about 50 inhabitants who agreed to a loan of 160,000 euros signed with the Cooperation Fund of the Provincial Council Burgos to pave several streets, renew supply networks and improve sanitation.

Since then, more than thirty operations have been processed that have allowed the financing of works and services to other local entities. In total, the Ministry of Finance has authorized 37 operations amounting to 367.7 million euros during the three years he has been exercising this competence.

The Minister of Finance, Pilar del Olmo, has repeatedly expressed her willingness to respond better to the needs of municipalities, since the Board is the administration closest to them. That is why the advice has been intensified to local entities, which have the possibility of meeting with the counseling staff to resolve their doubts or if they prefer, they can be channeled through the councils and the Local Secretaries College, with whom there is a relationship constant and fluid.

 

The financial cost of becoming president

  Each of the six candidates was legally allowed to spend up to €750,000 on their campaign

With the Presidential Election campaign now finished, attention today turns to counting the votes.

However, the campaign teams for the six candidates will also be doing their own count – a financial one – looking at how much they spent and how much the campaign is likely to cost them, and if they’re in line to recoup any of their costs.

Let’s give them a helping hand…

How much can a candidate spend?

Each of the six candidates was legally allowed to spend up to €750,000 on their campaign, but it is unlikely any of them came anywhere close to that amount.

Last month, RTÉ’s This Week programme sent a questionnaire to all six candidates contesting the 2018 Presidential Election campaign and the responses offer an interesting insight into the cost of running a campaign.

It indicated that the incumbent Michael D Higgins expected to spend just under €400,000 on his campaign – the highest amount of any candidate.

Gavin Duffy estimated his costs to come in at €300,000, followed by Liadh Ní Riada (€250,000 to €300,000), and Joan Freeman (€250,000).

Neither Seán Gallagher nor Peter Casey gave an estimate of what they might spend.

However, on Wednesday Peter Casey published details of his campaign spending showing it had cost him just under €80,000.

As per my promise… #Aras18 #PeterForPresident #expenses #campaigntrail #lessismore pic.twitter.com/6LH5X49Lkb

— Peter Casey (@CaseyPeterJ) October 24, 2018

In the last presidential election campaign in 2011, the total spent by the seven candidates was €2.3m, with the highest spender Gay Mitchell, whose unsuccessful campaign ended up costing €527,000.

How much can be recouped from the State?

If a candidate gets more than 25% of the quota in the election, they can be reimbursed up to €200,000 from the State.

This essentially means a candidate would need to get over 12.5% of the total vote to be eligible for reimbursement.

In 2011, that magic number was 221,471 votes and three candidates (Michael D Higgins, Seán Gallagher, and Martin McGuinness) exceeded that amount of votes and received the €200,000 reimbursement of costs.

Although all of these three candidates spent at least €300,000 on their 2011 campaigns.

Where is this money spent?

In response to the This Week questionnaire, Michael D Higgins said he would be spending around €130,000 on paid advertising, including posters, press advertising and local radio ads.

Liadh Ní Riada said she would spend at least €90,000 on election posters.

Meanwhile, Peter Casey said he would spend at least €30,000 on wages for his team, €10,000 on social media and €25,000 on strategic advertising.

How about spending on posters?

As you read above, Liadh Ní Riada committed to a spend of €90,000.

Based on previous elections though, spending on posters can end up being quite expensive.

The average cost of a standard poster you might see on a lamp post with an image and a slogan comes in at around €5.

To give you an idea of how much can be spent on campaign posters, let’s take a look at the 2016 General Election.

During that campaign, Fianna Fáil spent the most on posters at €145,000, with Fine Gael next at €136,000.

So it’s certainly not cheap, and unlike a General Election, in a Presidential Election a candidate is looking for votes all over the country – not just in one constituency.

Interestingly though the presidential race this time around is somewhat of a new departure, with four of the six candidates announcing they would be running a poster-free campaign.

Only Michael D Higgins and Liadh Ní Riada had used posters as part of their campaigns.

The incumbent’s campaign said it printed 5,000 Irish and English-language campaign posters, approximately one-quarter of the number used in his 2011 campaign.

Liadh Ní Riada’s campaign said it printed in the region of 17,000 posters.

This followed lobbying from interest groups such as Tidy Towns, which do not want numerous posters scattered in obscure locations across the country’s villages, towns, and cities.

How have candidates funded their campaigns?

Candidates lucky enough to have a political party backing them can offset much of the personal financial cost of running a campaign.

For example, Sinn Féin candidate Liadh Ní Riada says her party had arranged a bank loan of €200,000 to fund the campaign, with the rest being raised from donations and general fundraising.

Michael D Higgins told This Week he would be funding his campaign “primarily from small individual donations”, adding he would also be contributing a significant sum from his personal savings – around €110,000.

Peter Casey said he would be using his own money to fund his campaign, while Gavin Duffy said he was funding his campaign from some fundraising and from his own resources.

Joan Freeman said she was funding her campaign with “two loans and donations from the general public”, and some of that is already in the public domain.

Seán Gallagher said his funding includes a mixture of personal funding and donations.

Securing funding to run a campaign is an obvious barrier, as was highlighted by Independent Senator Gerard Craughwell who – after initially putting himself forward as a candidate for the presidency – said in July he would not be contesting the election for financial reasons.

Mr Craughwell said then that he would have to put his family into debt in order to continue his campaign, which he was not prepared to do.

How does this spend compare internationally?

While it’s difficult to compare the spending on Irish presidential campaigns with presidential campaigns in other countries, it is still interesting to note the differences in scale.

Spending hundreds of thousands on a roughly month-long campaign may seem excessive, but it pales into insignificance when we take a look at the most recent US presidential race.

Granted the American presidency is a much more high-profile position with infinitely more power, and the campaign lasts much, much longer than its Irish equivalent.

But the numbers are still staggering.

In 2016, Hillary Clinton’s unsuccessful campaign cost her $768m (€673m) and she outspent the victor, Donald Trump by nearly two to one.

Mr Trump’s campaign costs came in at $398m (€349m), which is still more than 872 times what Michael D Higgins planned to spend on his re-election.

The Irish election is much different to the US one, but the sheer scale of the difference in amounts spent is interesting to note nonetheless.

Budget 2019: Winners, losers and how to mitigate tax changes

  There was no one big winner from Budget 2019 with everyone making small gains

So now that the dust has settled on Paschal Donohoe’s second budget, we’ve been taking a look at who fared best, who was hardest hit and how to get around – or minimise the impact – of any adverse tax measures that may come your way in 2019.

When does the budget take effect? 

For smokers, it’s too late to stock up from your local store. The extra 50 cent on a packet of cigarettes kicked in at midnight on budget night bringing the cost of a pack of 20 to €12.70. If you’re a smoker on social welfare, the bite may feel extra nasty because the €5 increase in welfare payments will not take effect until March of next year, leaving four and a half months before you see the benefit of that. However, there is some consolation in the form of the full restoration of the double week payment at Christmas, known as the Christmas bonus. For PAYE workers, the changes to USC and income tax bands will kick in from January.

On the plus side, there was no increase in excise on alcohol, and, if you drive a diesel car, the expected increase in the carbon tax, or in excise on diesel, didn’t materialise meaning it’s still a considerably cheaper option that a petrol fueled car when you pull up on the forecourt. 

Who fared best? 

In truth, there was no one big winner from Budget 2019. It was what might in the past have been referred to as a ‘Late, Late’ budget – something for everyone in the audience. From a cumulative point of view, pensioners have probably done well from successive budgets. They will benefit from an additional €5 in the state pension as well as the return of the full Christmas bonus. There was also a further 50 cent reduction in the prescription charge for over 70s, bringing the charge to €1.50 per item. 

Single income families got a nice boost from the budget in the shape of a €300 increase in the home carer tax credit, meaning a family, in which one of the spouses stays at home, will be able to earn €1,500 that they don’t have to pay tax on. The credit is for married couples or civil partners who are jointly assessed for tax where one of them works in the home caring for a dependent person. According to Department of Finance figures, a single income family on €55,000 will be €552 better off a year. A single income family with no children will only be €252 better off as a result of changes to USC and income tax bands. 

Self-employed people made some strides towards equality with their PAYE paying counterparts in this budget, but are still around €300 worse off when it comes to taxes and allowances. The earned income credit – the amount a self-employed person can earn before paying tax – rises by €200 to €1,350. (The equivalent for a PAYE worker is €1,650). There will also be an entitlement to jobseekers’ benefit if they are left without a livelihood. 

Who fared worst? 

If there was to be a loser in Budget 2019, it was probably low income workers where gains were limited. For those on the minimum wage, they will benefit from the 25 cent increase to €9.80 per hour. A worker on €22,000 will be better off about €2 per month. They will benefit from the ceiling on the second USC rate band being increased from €19,372 to €19,874, but they won’t get any benefit from the increase in the standard rate tax band. 

Many will be disappointed that nothing was done to tackle rising rents and suspect that landlords will be slow to pass on the savings they make from an increase in the mortgage interest relief that they will now get for rental properties. 

The widening of the threshold for affordable childcare, while welcome for thousands of families, still sees it limited to fairly modest incomes. At €60,000, it means if both workers were on the average wage of just below €37,000, they would not qualify. 

How to minimise the impact of taxes 

Unlike the situation ten years ago, no workers have been hit with tax increases on their earnings and, although the savings are fairly marginal, they are welcome. However, some will argue that the gains made in their pay packets will be more than offset by changes elsewhere. For example, the increase in the VAT rate in the hospitality sector will likely see price increases in hotels, restaurants, cinemas and hairdressers.So how do you minimise the impact of such increases on your pocket? One obvious way is to become selective and shop around. 

But it’s also worth bearing in mind that the cut in the VAT rate from 13.5% to 9% was funded in the early years through a €2.5 billion raid on private pension funds. For anyone who feels aggrieved by that move, the good news is that workers can claw back some of those losses, and offset some of their considerable income tax bills, by making bigger pension contributions. It’s a very effective means of paying less income tax. If you pay tax at the higher 40% rate, a €100 contribution to a pension will only have a net cost of €60. (The logic here is had you not put that money into the pension, the other €40 would have gone to the government as income tax.)  

Pensions carry other tax benefits too. They grow free of tax, unlike deposits. Interest on savings – although still minimal thanks to historically low interest rates – are subject to DIRT of 35%. When pensions are drawn down later in life, a retirement lump sum can be taken tax free. 

In the market for a car? 

For those looking at buying a diesel car, act now, or otherwise they might want to sit down and do the maths first. The Minister announced a 1% surcharge on VRT (vehicle registration tax) of new and imported diesel cars from January. (Imports have become a particularly popular option with the collapse in the value of sterling since the Brexit vote in 2016). Alan Nolan, Director General of the Society of the Irish Motor Industry (SIMI) says the 1% surcharge will add around €400 on average to the price of a new diesel car. And he points out that diesel cars were already facing an increase in VRT next year of the order of around €450, even before this measure was announced, due to new EU emissions tests. 

Despite petrol remaining a more expensive fuel, there are considerable savings to be made by buying a hybrid. Firstly, it will cut your fuel bill and, secondly, VRT reliefs on hybrids have been extended to the end of 2019. The current VRT relief on hybrids is €1,500. Hybrids still account for quite a low proportion of car sales in Ireland but it is growing. 

And for those who can cope with the burgeoning first world concept of ‘range anxiety,’ going full electric is a good option. There’s a grant of up to €5,000 available to put towards the cost of buying a new electric car valued at €20,000 or more. (Smaller grants are available on less valuable cars. For cars valued under €14,000, no grant is available.) In addition, there is a €600 grant for electric car owners to help cover the purchase and installation of home charge points. The savings over the longer term can be considerable. 

The Sustainable Energy Association of Ireland (SEAI) estimates that a Nissan Leaf 40kWh car driven 16,000 kilometres would use 3kWh of electricity costing €219 in electricity (based on night rates). A Ford Focus petrol car driven 16,000 km would currently cost €1,730 over 12 months at 1.50 per litre. That’s a saving of €1,511 over the year. 

As frustrating as tax increases of any kind are, the reality is that it could have been much worse. For those who were earning at the time, just cast your mind back to the budgets of the latter years of the last decade. However, although families will pay a little less tax on their earnings next year, they will still be paying more tax in 2019 than they did in 2008. 

Where to consolidate debt?

March 22, 2018 | Debt consolidation | No Comments

Today, bank credit is an essential financing for the realization of its ambitions. As for example, funding to continue education for children, or to undertake the acquisition of a new property, but also to provide cash for travel, etc.

If the subscription of loans makes it possible to improve the conditions of life, it can also plunge the borrower into a situation of deep insolvency. In such a situation, the consolidation of receivables asserts itself to be a real adequate solution to the resolution of financial problems related to the budget, and thus to obtain a result allowing to get out of business.

The consolidation of debts and its multiple advantages!

Which individual does not want to be able to afford everything he needs to improve his quality of life? Person of my acquaintance !!!

If you need help with payday loans, then you may go to https://paydayloanconsolidation.net/ site.

Consumer credit and personal loans are precisely for that, so, it must be said that it is a mistake not to use it as financial leverage, especially as interest rates are currently at their most. low level. It is important to know how to manage the risks of budget management leading to personal insolvency. Although for ordinary people, incidents of life are not predictable but can be prepared upstream action to deal with it on the day.

As an expert debt consolidation broker, our solution lies in the implementation of a loan redemption file!

The credit restructuring is an effective loophole to cope with insolvency, it is to give breath to the finances of the home. The principle is quite simple of operation. It is a question of finding the house of credit that is favorable to settle the outstanding debt of the debtors in order to carry out a transfer of the outstanding debts.

This process makes it possible to benefit from a reduction in the monthly charges payable and to obtain a longer repayment period over time, that is to say, more adapted to the repayment capacity of the borrower. The amount to honor each month is, therefore, less burdensome. This amount can be reduced by up to 60% depending on the case studies of the client files.

Where to buy credit?

In addition to the traditional players (classic deposit banks), today there are 100% specialized agencies on the market. The latter stands out mainly for more flexible offers and more competitive interest rates.

Their other advantage lies in their high reactivity. If the application is submitted in minutes by completing an electronic form, the processing of it is also incredibly fast and efficient.

At your dealer specializing in the purchase of credits, the buyout offers generally concern consumer and/or real estate loans, but also the granting of cash.

Although refinancing regenerates the health of the budget, we can clearly distinguish two categories of needs in individuals :

The first grouped credit category is used to finance financial aid for:

    • renovate
    • pay the costs of a divorce
    • the purchase of a vehicle

While the second type of loan consolidation is essentially renegotiation of interest rates in order to reduce the total cost due.