Debt

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

In most cases, a person’s debts do not disappear when they pass away. Those debts are owed by and paid from the estate of the deceased person. Family members are usually not required by law to settle a deceased relative’s debts with their own money. If the estate doesn’t have enough money to cover the

A fiscal deficit occurs when a government spends more money than it receives in taxes and other sources, excluding debt, over a given time period. The government borrows to close the shortfall between revenue and spending, raising the national debt. In theory, increasing the fiscal deficit might help a slow economy by providing more money

It’s only for the interest you paid, not for the overall amount of student loan installments you made for your higher education debt. Because the deduction reduces taxable income, you don’t have to itemize deductions on your tax return to receive it. Do you get a tax return if you have a HECS debt? The

A substantial amount of the public debt is held by foreign governments, while the balance is held by US banks and investors, the Federal Reserve, state and local governments, mutual funds, pension funds, insurance companies, and savings bonds. Who owns over 70% of the U.S. debt? Domestic financial actors and institutions in the United States

You are still liable for any debts incurred in your name after a divorce. That means that if you and your spouse used a joint credit card, you are both equally responsible for the debt. Beyond that, how credit card debt from your marriage is handled in divorce depends on a variety of things, including

While the national debt can be calculated in trillions of dollars, it is most commonly expressed as a proportion of GDP, or the debt-to-GDP ratio. This is because as a country’s economy increases, so does the quantity of revenue available to pay down its obligations. Furthermore, a stronger economy means the country’s capital markets will