Debt

When negotiating with a collector on an unsecured debt, here are some of your alternatives. Offer a Lump-Sum Settlement If you opt to pay a single sum to settle the debt for less than you owe, keep in mind that not all collection agencies follow the same rules. Some creditors want 75%–80% of what you […]

How does a high national debt affect the economy? However, if we do nothing, the converse is also true. Our economic environment will deteriorate if our long-term fiscal challenges are not addressed, as confidence will erode, access to capital will be limited, interest costs will crowd out key investments in our future, growth conditions will

Even if the housing market appears to be improving, first-time home buyers still face challenges. Too many people abuse credit cards and end themselves in debt, while others deal with unforeseen medical expenditures that devastate their finances. Rising consumer debt can harm creditworthiness and result in worse credit scores, making it more difficult for some

While investing in a college degree has indisputable long-term economic rewards, high student debt can put borrowers in a financial bind, limiting their capacity to save for retirement, impacting their ability to buy a home, and even delaying life decisions like starting a family. Young college graduates today are entering the workforce with historic sums

Because interest paid on debts is frequently considered favorably by tax regulations, tax deductions for outstanding debts can reduce a borrower’s effective cost of debt. The interest paid on debt less any income tax savings owing to deductible interest expenditures is the after-tax cost of debt. Subtract a company’s effective tax rate from 1 and

When used effectively, public debt can help a country’s standard of living. It enables the government to construct new roads and bridges, improve education and job training, and pay for retirement benefits. This encourages people to spend today rather than save for the future. This spending stimulates the economy even more. Why is a country’s

However, if we do nothing, the converse is also true. Our economic environment will deteriorate if our long-term fiscal challenges are not addressed, as confidence will erode, access to capital will be limited, interest costs will crowd out key investments in our future, growth conditions will deteriorate, and our country will be at greater risk

Your debt-to-income ratio (DTI) is an important metric that lenders examine to determine if you are financially capable of taking on more debt. It does exactly what it says on the tin: it compares your monthly debt payments to your monthly earnings. When you apply for a new loan, your DTI is used by lenders

The Greek debt crisis is the result of the government’s excessive spending practices. Greece’s financial status was stable when it joined the EU in the early 1980s, but it rapidly deteriorated during the next three decades. From 2001 to 2008, the economy grew at a rapid pace, backed by increased expenditure and rising debt levels.

The total national debt due by the federal government of the United States to Treasury security holders is known as the US national debt. The national debt is the face value of all outstanding Treasury securities issued by the Treasury and other federal government agencies at any one moment. The terms “national deficit” and “national