Debt

Delinquency refers to the fact that you’ve missed a payment or two. Default is declared on a loan when it has been in arrears for a predetermined amount of time (typically nine months for government loans). At that point, the whole amount of the loan will be owing. What is considered a delinquent federal debt? […]

After filing for bankruptcy or submitting a consumer proposal, you will be free of your financial obligations. Either way, it’s the final stage. Once you’ve finished all of the procedures of the bankruptcy or consumer proposal process, all of the debts you had when you filed for bankruptcy or made a consumer proposal are gone.

Allowable deductions such as mortgage interest, medical expenditures, charity donations, amortization and depreciations can reduce taxable income for an individual or a corporation. An individual’s tax bill is reduced or deferred by taking advantage of certain deductions. As a result of tax shields, individuals and businesses pay less in taxes. Why is there a tax

It is a measure of a company’s financial leverage, the debt-to-capital ratio. Determination of debt to capital by dividing the company’s entire capital by its total interest-bearing debt is known as the “debt-to-capital ratio.” Total capital is the sum of all debt and equity, which might include things like common stock, preferred stock, and minority

When calculating a company’s debt-to-equity (D/E) ratio, it is important to know how much leverage the company is utilizing. A company or stock with a higher level of leverage is more likely to pose a danger to investors. However, it is impossible to compare the D/E ratio across industries because the appropriate level of debt

There is a decent balance between debt and income if the DTI ratio is low. As a result, if you have a debt-to-income (DTI) ratio of 15%, it indicates that 15% of your monthly gross income goes toward paying down your debt each month. It is possible to have too much debt for one’s monthly

Using the debt to net worth ratio, investors can compare a company’s amount of debt to its total assets. It serves as an indicator of a company’s financial well-being. Debt-to-equity ratios are useful for investors because they show how much of a company’s capital comes from loans. If things go awry, the debt-to-net-worth ratio can

How much you owe compared to how much you earn is known as the debt-to-income ratio (DTI). If you plan to borrow money, lenders will use this number to see if you can afford the monthly repayments. What is a good debt ratio? If a debt ratio is “excellent” in the context of the company’s

This type of insurance, which is also known as creditor insurance, creditor group insurance or credit insurance, is used to pay out a loan sum in the event of a death, incapacity, loss of a job, a critical illness, or any other incident that would prevent the customer from repaying their debts. Credit counseling can

When creditors (the people from whom the company has borrowed money) own a greater percentage of a corporation than its shareholders do, the debt-to-total-assets ratio is high. A corporation is said to be more leveraged if its debt-to-total-assets ratio is higher. What is a good debt to total assets ratio? Most experts agree that anything