Debt

The legal obligation to pay back a definite or predetermined sum at a later date constitutes a debt. Either you or the property that you own may be held personally responsible for a debt. As long as your debt is forgiven or discharged for a lesser sum than what you owe, that sum is termed […]

When a business raises capital by selling debt instruments to investors, this is referred to as debt financing. The antithesis of equity financing is debt financing, which involves issuing stock as a means of raising capital. When a company sells fixed-income securities like bonds, bills, or notes, it engages in debt financing. In contrast to

How much you owe compared to how much you earn is known as the debt-to-income ratio (DTI). To assess your ability to repay the loan, lenders look at your ability to make monthly payments of at least this amount. What is a good debt-to-income ratio? A DTI ratio has two parts: a front-end ratio and

Please check out your credit report. Checking your credit record is the first step in determining whether or not you owe money. The three major credit agencies — Equifax, Experian, and TransUnion — each offer a free credit report every 12 months through AnnualCreditReport.com, which you can see once a year. How do you know

I had to get my finances in order before I could make any progress in the battle against my debt. My debt wasn’t accumulated overnight. Years of poor financial decisions were to blame. Spending time with friends and shopping all went on my credit card. After accruing $5,000 in debt, the time has come to

At least until you learn about your rights, find out if the debt is really yours, if you wish to file for bankruptcy, and learn whether the statute of limitations has expired, you should consider ignoring debt collectors’ calls or other communication techniques. To avoid giving the collector good information, or worse, saying something that

Calculate your total monthly loan payments by multiplying your total monthly income by 12. By multiplying the decimal point by 100, you can convert it into a percentage. How do mortgage companies calculate debt-to-income ratio? Using your pre-tax or gross monthly income, lenders compute your debt-to-income ratio. Although there are certain exceptions, most lenders prefer

Investors and lenders can gauge a company’s overall financial health by its debt-to-equity ratio. The debt-to-equity ratio is calculated by dividing a company’s total liabilities by its total equity. What is a good debt-to-equity ratio? Debt-to-equity ratios of roughly 1 to 1.5 are generally considered good. However, the appropriate debt-to-equity ratio varies depending on the

Using the Long Term Debt to Total Asset Ratio, a company’s financial situation and ability to satisfy its financial obligations are depicted in this ratio. Loan and other long-term financial obligations are used to fund a certain percentage of a company’s assets. Decreases in this ratio indicate that the company is doing well and relies

To find out how much you owe on your HECS-HELP loan, you can either: Use the National Student Loan Data System You can utilize the National Student Loan Data System (NSLDS), a database maintained by the Department of Education, to find out how much you owe on your federal student loans. It’s standard procedure for