Got Debt?
What is the definition of debt?
Debt is something that is owed to someone else. An individual person or company / business owing a debt is called a debtor. The entity that is owed the debt is is labeled a creditor. Debt is primarily used to borrow purchasing power with a promise to pay back at an agreed upon time. Most businesses / companies use debt as a tool of their overall corporate finance strategy.
What types of debt are available
There are many types of debt obligations. They include but are not limited to mortgages, HELOC, bonds, credit cards and promissory notes. It is very common to borrow large sums for major purchases, such as a mortgage or car loan, and repay it with an agreed premium interest rate over time, or all at once at a later date (balloon payment). The total amount of money outstanding is normally called a debt. The debt will increase via interest. In many 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 (think loan sharks).
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 more info Google "debt
Debt is something that is owed to someone else. An individual person or company / business owing a debt is called a debtor. The entity that is owed the debt is is labeled a creditor. Debt is primarily used to borrow purchasing power with a promise to pay back at an agreed upon time. Most businesses / companies use debt as a tool of their overall corporate finance strategy.
What types of debt are available
There are many types of debt obligations. They include but are not limited to mortgages, HELOC, bonds, credit cards and promissory notes. It is very common to borrow large sums for major purchases, such as a mortgage or car loan, and repay it with an agreed premium interest rate over time, or all at once at a later date (balloon payment). The total amount of money outstanding is normally called a debt. The debt will increase via interest. In many 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 (think loan sharks).
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 more info Google "debt
About the Author:
When you are owed a debt you need a Collection Agency or request a free quote from a Collection Company
posted by Debt Consolidation Loan at
5:36 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home