When should banks chase debts? New method could help them decide

Like Kenny Rogers' gambler, who has to "know when to hold 'em, know when to fold 'em," banks face financial risks and uncertainty when deciding when to chase consumers who default on their credit card payments and when to ...

Credit counseling may help reduce consumer debt

By the end of fourth quarter 2018, total household debt in the United States reached a new high of $13.54 trillion. A new Economic Inquiry study found that nonprofit credit counseling—which reaches millions of consumers ...

Tesla to pay off $920M in bonds with company cash

Tesla Inc. will pay off $920 million worth of bonds when they come due on Friday, using up about one quarter of the cash available for capital spending and future debt payments.

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Debt

A debt is an obligation owed by one party (the debtor) to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.

A debt is created when a creditor agrees to lend a sum of assets to a debtor. Debt is usually granted with expected repayment; in modern society, in most cases, of the original sum plus interest.

In finance, debt is a means of using anticipated future purchasing power in the present before it has actually been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.

This text uses material from Wikipedia, licensed under CC BY-SA