However, the reality is that the difference between good debt and bad debt is more nuanced. "You buy a house and only put 5% down, and you have a problem potentially," Gerstman says. If your income decreases or the housing market crashes, you could owe more on a home than it's worth...
Corporate Debt Tax Debt Medical Debt Other Debt Types Secured Debt When a loan is tied to an asset, such as a car or house, it is considered secured debt. The lender has the right to claim the collateral if the borrower defaults on payments, making these loans less risky for creditors....
Technical debt -- or tech debt -- is the implied cost incurred when businesses do not fix problems that will affect them in the future. Accruing technical debt causes existing problems to get worse over time. The longer debt builds up, the more costly it becomes to rectify. ...
Debt consolidation rolls multiple debts, typically high-interest debt such as credit card bills, into a single payment. Debt consolidation is a good idea if you can get a lower interest rate than you're currently paying. This will help you reduce your total debt and reorganize it so you can...
What Are the Different Types of Debt Markets? What is a Corporate Debt Market? What is Securities Law? What are Private Securities? What is Private Placement Debt? What are Private Placement Securities? What is a Security Market Line?
Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. Equity The state or quality of being just and fair. Debt Something owed, such as money, goods, or services Used the proceeds to pay off her debts. A debt of gratitude. Equity Something ...
Corporate debt restructuring is the reorganization of adistressedcompany's outstanding obligations to restore itsliquidityand keep it in business. It is often achieved by way of negotiation between distressed companies and theircreditors, such as banks and other financial institutions, by reducing the to...
Debt and loan are often used synonymously, but there are slight differences. Debt is anything owed by one person to another. Debt can involve real property, money, services, or other consideration. In corporate finance, debt is more narrowly defined as money raised through the issuance of bonds...
Publicly-traded debt securities differ on a number of dimensions, including quality, maturity, seniority, security, and convertibility. Finance research has provided a number of theories as to why firms should issue debt with different features; yet, there is very little empirical work testing these...
Subordinated debt is riskier than unsubordinated debt. Subordinated debt is any type of loan that's paid after all other corporate debts and loans are repaid, in the case of borrower default. Borrowers of subordinated debt are usually larger corporations or other business entities. Subordinated debt...