What is the definition of Debt?
What is debt?
Debt is that which is owed. A person or company owing debt is called a debtor. An entity to whom debt is owed is called a creditor. Debt is used to borrow purchasing power from the future. Companies use debt as a part of their overall corporate finance strategy.
What types of debt are available
There are numerous types of debt obligations. They include loans, bonds, mortgages and promissory notes. It is common to borrow large sums for major purchases, such as a mortgage and pay it back with an agreed premium interest rate over time, or all at once at a later date (balloon payment). The amount of money outstanding is usually called a debt. The debt will increase through time if it is not repaid faster than it grows. In some systems of economics this effect is termed usury, in others, the term "usury" refers only to an excessive rate of interest, in excess of a reasonable profit for the risk accepted.
Larger companies can issue debt in the form of securities, known as bonds. Each bond entitles the holder to specific interest and principal payments. Bonds are traded in the bond markets, and depending on the rating are relatively safe investments in comparison to stocks.
For additional info Google "debt
Debt is that which is owed. A person or company owing debt is called a debtor. An entity to whom debt is owed is called a creditor. Debt is used to borrow purchasing power from the future. Companies use debt as a part of their overall corporate finance strategy.
What types of debt are available
There are numerous types of debt obligations. They include loans, bonds, mortgages and promissory notes. It is common to borrow large sums for major purchases, such as a mortgage and pay it back with an agreed premium interest rate over time, or all at once at a later date (balloon payment). The amount of money outstanding is usually called a debt. The debt will increase through time if it is not repaid faster than it grows. In some systems of economics this effect is termed usury, in others, the term "usury" refers only to an excessive rate of interest, in excess of a reasonable profit for the risk accepted.
Larger companies can issue debt in the form of securities, known as bonds. Each bond entitles the holder to specific interest and principal payments. Bonds are traded in the bond markets, and depending on the rating are relatively safe investments in comparison to stocks.
For additional info Google "debt
About the Author:
If you are owed a debt contact a Collection Agency or request a free quote from a Collection Company
posted by Credit Counseling at
6:21 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home