A debt creditor is owed money by a debtor, who is expected to make payments based on an agreement that may include interest. If a debtor cannot meet their obligations, a creditor may seek assistance from collection agencies or take legal action. Debtors have options such as debt settlement companies, credit counseling, and debt consolidation […]
Convertible debt accounting is the process of recording transactions related to bonds that can be converted into equity. Accurate records, disclosure of debt amounts and reasons, compliance with laws, and valid information are important. Failure to comply with laws can result in fines and damage to a company’s reputation. Convertible debt typically represents bonds issued […]
Military families struggling with debt have several options for relief, including debt consolidation through credit counseling or loans, protections under the Servicemembers Civil Relief Act, student loan repayment programs, and debt settlement as a last resort. These options can create lower interest rates, longer payment periods, and reduced overall payments, but caution should be exercised […]
Debt deflation occurs when the value of an asset used as collateral for a loan decreases, causing lenders to adjust loan terms. Even assets believed to increase in value can fall victim to debt deflation. Regulations govern lender actions, and borrowers should understand what lenders can and cannot do in such situations. Also known as […]
Business debt relief involves third-party involvement, such as credit counselors, lawyers, or investment banks. Solutions vary depending on the type of relief required, from negotiating with creditors to bankruptcy protection filing or financial reorganization. Selling non-core assets can also generate capital. Business debt relief is most likely to involve a client and third-party involvement, such […]
Lack of sleep accumulates and negatively affects cognitive abilities, causing symptoms such as daytime sleepiness and increasing the risk of falling asleep during activities like driving. Many Americans lack sleep by about an hour each night, and catching up on weekends is not enough. A paid plan of at least eight hours of sleep each […]
Debt self-help tips include creating a personal budget, building an emergency fund, organizing debt, and starting a payment program. Paying off debt requires sacrifice. An emergency fund of $1,000 is recommended to avoid unexpected expenses. Organize debt by lowest to highest owed or highest to lowest interest rate. Pay off debt from smallest to largest […]
Non-downloadable debt cannot be resolved through bankruptcy and includes student loans, tuition, and alimony. Chapter 7 allows termination of non-bad debt, while Chapter 13 involves a repayment plan. Student loans and alimony must be repaid, while taxes are dischargeable under Chapter 13 but not Chapter 7. Reductions in non-repayable debts are possible through a lawyer. […]
Consumer debt includes all outstanding credit related to the acquisition of consumable goods, such as credit cards and auto loans, and is not secured by collateral. It is a common form of debt that can indicate a stable economy when kept within certain limits. Consumer debt is a broad term that covers all types of […]
The Mortgage Forgiveness Debt Relief Act of 2007 temporarily suspended income tax on forgiven debt from bankruptcy or refinancing for primary residences up to $2 million. It does not cover rental or second homes, and was extended through 2012 due to the financial crisis. The Mortgage Forgiveness Debt Relief Act is a 2007 law passed […]
When choosing a debt consolidator, beware of high fees and questionable services that could damage your credit rating. Look for a reputable consolidator who examines your financial situation and develops a plan to stabilize your finances. Non-profit organizations are often the best option, but be wary of companies that promise quick credit score improvements. Check […]
When choosing a non-profit debt consolidator, research is key. Verify their non-profit status with a 501(c)(3) certificate and check their reputation with organizations like the Better Business Bureau. Ensure they won’t negatively impact credit and compare costs to find the best option. When choosing the best non-profit debt consolidator, it is best to research potential […]
Debt spread is an options spread where the purchased option has a higher value than the premium of the sold option, resulting in a short-term decrease in cash balance. It can be used in any market environment and involves a certain degree of risk. The success of the strategy relies on choosing the right buy […]
A debt settlement letter offers to settle a debt for less than the full amount owed, typically used for unsecured loans like credit card debt. Lenders may accept, reject, or make a counter offer, and it can affect the debtor’s credit rating. A debt settlement letter is often written when a debtor is having difficulty […]
A secured debt obligation is an investment backed by multiple assets, including non-mortgage bonds or bank loans, creating higher risk but also higher returns. Collateralized debt obligations (CDOs) are investment grade securities that use a mixture of debt instruments to back a single bond. Investors do not own the debt instruments but have access to […]
Debt funds use a pool of fixed income holdings, including securitized products and money market instruments, to generate stable returns. Examples include exchange-traded funds and mutual funds, with a mix of financial instruments providing fixed returns. Debt funds have lower fees than equity funds and are easier to project earnings. Regular evaluation helps maintain consistent […]
A debt ceiling limits the amount of debt an organization can carry, often associated with the US federal government. It can be increased through the combined actions of the legislative and executive branches. The limit was first instituted during World War I to limit the total amount of money the federal government could borrow. To […]
Debt cancellation can be granted to individuals, businesses, or countries in various circumstances. Credit card companies and mortgages may have debt cancellation policies, and student loan debt cancellation is rare. Lending countries may offer debt cancellation to poorer countries or after catastrophic events. Debt cancellation refers to complete absolution from debt, which can be granted […]
A bad debt write-off is a way to remove uncollectable debt from a company’s accounts receivable and use it as a tax deduction. It can occur when a customer defaults on a balance or files for bankruptcy, but efforts to collect the debt may still continue through collection agencies or debt sales. A bad debt […]
A debt management plan helps pay off unsecured debts, such as personal loans and credit cards. Debt management firms can reduce payments and eliminate late fees. Only unsecured debts are eligible, and debtors must pay a monthly fee to the firm. It’s important to choose a reputable company and keep track of payments. A debt […]
