Questions tagged [debt]
The debt tag refers to all situations where money is owed to another party, often a bank or other financial institutions. This tag covers how to get out of debt, how much debt to carry, and other borrowing related questions.
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How does Etoro calculate Total Debt to Equity ratio?
I am trying to understand the Balance Sheet report in Stats page that show on each company listed in Etoro.
I understand that the formula for Debt to Equity ratio is just that : Debt/Equity and maybe ...
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1answer
78 views
How can one debt-finance a corporate takeover and then transfer debt to the company? [closed]
I'm reading about the Glazer family's takover of soccer club Manchester United nearly two decades ago. They apparently debt-financed their takeover, borrowing hundreds of millions of pounds, and some ...
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2answers
2k views
How to write down each month borrowing over past month
Since Pandemic I had lost my job and borrowed money or money sent by my parents from saving but I couldn't write it down as I am financially illiterate/bad with maths. Now and in past, it has caused ...
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1answer
222 views
What do I do after requesting and receiving a debt validation letter for a medical debt I don't recognize?
I received a debt collection call a few months ago from a professional debt collector for a debt I didn't recognize, followed by a written notice. I wrote back that I dispute the debt and requested ...
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2answers
104 views
How to tackle Student Loan debt before and after marriage
My partner and I are trying our best to plan for the future and figure out how we will manage our finances in the coming years. They are currently about to begin their graduate studies for their field ...
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6answers
4k views
How can I know if a debt collector is holding onto a debt?
Some time ago, I was contacted by a debt collector. A prior landlord had claimed I had owed them six months of rent. The landlord sold the debt to a debt collector, who then silently held onto the ...
27
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2answers
7k views
Taking college classes to avoid student loan payments indefinitely
My sister-in-law has decided she wants to take part time college classes so she doesn't have to make payments on her private student loan and her plan is to do this until she dies.
She graduated from ...
3
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2answers
171 views
Why would rising interest rates favor the company with more long-term debt?
I was reading about the debt to equity ratio on Investopedia and in third paragraph under the "Modifications to the Debt-to-Equity (D/E) Ratio" title, it says that:
"If interest rates ...
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3answers
402 views
Debt options for single mom starting over
Hello fellow community members. I have a question regarding debt, and since it is a shameful subject with a lot of stigma I have been reluctant to ask for advice.
Currently I am a single mama to a ...
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3answers
320 views
Who’s losing money when debt becomes easier to payoff thanks to inflation?
The Consumer Price Index in the US in May jumped up by 0.6%. Overall it’s possible that prices on goods (aka inflation) will increase by 10% in 2021. Now, assuming that salaries follow trend as well ...
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11answers
7k views
Bill payee can't find my payment and threatens debt recovery action
TL/DR Bill payee can't find my bank transfer and threatens debt recovery action. What to do?
A family member is studying at a major UK university. Quarterly or so, the university raises tuition bills. ...
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0answers
37 views
What expense account is recommended for prepaid expenses where services were never received? [closed]
Our small business prepaid a contracting agency (software development) to complete some work for us. We booked the A/P accrual against the assets prepaid expenses account, since that's what we would ...
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2answers
54 views
When calculating the debt-to-equity ratio of a company, what is shareholder equity?
If the debt-to-equity ratio of a company is calculated by dividing the liabilities of a company by the shareholder equity of the company, does this mean you would divide $10,000 (if a company has this ...
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2answers
83 views
How are borrowings in local currency used to hedge foreign exchange exposure on investments?
The following appears in Jardine Matheson's 2020 annual report's Financial Review section:
Treasury Policy
The Group manages its exposure to financial risk using a variety of techniques and ...
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3answers
396 views
Who is buying all the debt?
Please bear with my limited knowledge of monetary systems. I've got degrees in Comp Sci and Math, and i work as an ml engineer, so I'm pretty used to numbers. But, i simply can't wrap my mind around ...
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1answer
61 views
Is using debt into a regular mutual fund different from investing in a leveraged mutual fund?
I was thinking if I should invest in some mutual funds using low-interest rate debt. But then I read this Q&A: Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?
If I ...
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2answers
197 views
Business paying back debt to individuals
I have a single member LLC (Missouri, United States) that I started a few years ago. We received approximately $20,000 in funding from family and friends, of which I did not fully understand the ...
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2answers
185 views
Handling rent debt in California
Due to the pandemic, I was unable to pay rent for my apartment complex that I have now moved out of. I do not have the money to pay this debt because I was unemployed because of the pandemic. ...
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8answers
5k views
How badly will my credit score be affected if I don't pay back a small margin debt?
I recently started trading stocks and was trading on ameritrade. I went in with just a little money to play around with and try and learn about it, but I forgot to turn off margin trading apparently.
...
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1answer
80 views
Is a bunch of debt now better than distributed debt in the future in terms of paying less in the long run?
This might be too theoretical but it popped into my head this concept for attending University/College. If you had the ability to choose one of the following which is best in terms of you paying ...
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1answer
287 views
How to manage the money I got from "lump-sum housing lease"?
In South Korea, there is a concept called "jeon-se", which can be roughly translated into "lump-sum housing lease" or "long-term rental deposit". It goes like this: An ...
3
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1answer
323 views
Why would student loans be valued at $1.04 for every dollar of debt?
According to this Yahoo! Finance article, the Department of Education has some analysts who attempt to estimate the value of the Department's student loan portfolio:
For years, bean counters at the ...
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4answers
257 views
What would most likely happen if you owed money to a business upon completion of a service but realised that you don't have a way to pay?
I came pretty near this situation, but luckily I had an extra debit card (although I would've preferred to use my credit card).
I was at a vet to prepare my pet for a surgical procedure, and they ...
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5answers
7k views
Why don't most people file Chapter 7 every 8 years?
Please explain to me why more people don't follow a formula like this:
Converting all their assets into exempted assets (for which there are tons of options, regardless of your state -- ERISA-...
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0answers
58 views
How many "Charge Offs" can a company put on a single debt?
A while ago I took out a loan and couldn't pay it off due to loosing my job. I got another job, and before I could start making payments, a collections agency called me up about the loan. I paid it ...
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1answer
48 views
General price lowering and debt hypothetical
Assume for a moment that the CPI accurately encompasses all prices. Also assume that I have $100 of outstanding debt. Let's now say that the CPI decreases by 25%. In real terms, this change in CPI ...
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1answer
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Does paying down debt in an S Corp decrease profitability?
Long story short - I'm a participating shareholder of a small S Corp that has debt.
At the end of the year, since it's an S Corp, the profits/losses are passed down to the shareholders to be reported ...
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1answer
59 views
The term "debt financed" as a source of payment for doing the Acquisition, is it?
I have a question for word phrase "debt financed" in Acquisitions but for my best understanding, I would like to ask a question on random example: Let's say we have three companies: CompanyA,...
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2answers
189 views
Which should I pay first, Car Loan vs Zero-Interest Credit Card Promo?
I have a new car loan for $12k at 7.74%, and about $10k in old credit card debt that I just transferred to a card with a ~20% APR after the initial 13 month zero-interest promo. (So, I am not being ...
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2answers
229 views
Does credit score show you are a responsible borrower or a profitable client for the bank?
This might be a silly question, but I'm trying to wrap my head around how the US Credit Score works. I'm from Europe.
Credit Score represents creditworthiness, which as I understand it, represents a ...
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4answers
550 views
Why do most companies have debt and are there any companies without debt?
Somewhat inspired by this question. It seems that no matter what company I hear about, they always have some sort of debt to someone. Even if the company is in great financial shape and makes tons of ...
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2answers
138 views
Is it possible to keep mortgage after bankruptcy?
If one declares a bankruptcy, can he or she keep his/her mortgage account and continue repaying it, while erasing all the other debts? In general, is it possible to negotiate to keep some credit ...
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5answers
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How can one be financially devastated by unsecured debt?
My question is theoretical, I don't understand why people say that big piles of debt are dangerous. If one has a lot of unsecured debt and ends up defaulting on it then one does not even have to ...
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1answer
86 views
Creditworthiness of counterparty
Based on historical evidence, a B-rated counter party is approximately 16 times more likely to default over a 1-year time period than a BBB-rated counter party. Over a 10-year time period, a B-rated ...
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3answers
298 views
Question About Medical Bill Defense
So, I've been researching for a quite a bit and haven't been able to find a case or ruling that relates close to my situation.
I went to a sleep specialty physician about four years ago who was ...
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2answers
243 views
Disputing a collection on an account that is current, but the collection agency wants the original debt amount
I have a surgery bill (Original Balance: $2,757) that I have been paying off for the past 2 years with auto-drafted monthly payments. Every month on the 1st a payment was auto-drafted from my checking ...
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2answers
294 views
Debt in a foreign country
I have spent couple of months in Lithuania in the beginning of this year. I signed up for a gym membership for 1 year. But due to covid, I left Lithuania and came back to my non-EU home country. (I ...
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5answers
10k views
If a bank fails, will debt be wiped out?
I have debt to Capital One. If they fail, and whoever the trustee is fails, will the debt eventually get lost in bankruptcy proceedings?
Considering the Lehman bankruptcy is still ongoing, well past ...
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4answers
553 views
Do companies destroy value when they borrow to pay dividends?
When public companies pay dividends, their stock price will be reduced by the amount of the dividend. This makes sense to me, but I'm wondering if this applies when companies borrow to pay dividends (...
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1answer
545 views
So I was used as a money mule and now I have a CIFAS marker I desperately need to get rid off?
so some time back I was used as a money mule without realising by someone I trusted very much. Once he had everything he wanted (money) he then blocked me leaving me with a debt of more than £5000. I ...
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1answer
136 views
What are some good reasons to buy U.S. Government debt (Treasury bonds)? [closed]
Treasury bonds issued by the U.S. Government are considered virtually risk-free, because they are backed by the U.S. Government's ability to tax in order to pay them off.
I understand that Treasury ...
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4answers
406 views
Stuck in a debt of 3 credit cards
I have 3 credit card and I have utilized the funds of these cards 100%. Now I need to pay back the amount to bank. I am from Pakistan and the currency is PKR. Here is the stats:
Card 1 - 4.5K (cash ...
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3answers
127 views
The most efficient way to pay off loans/credit? [duplicate]
Supposed you have a fixed amount of money to commit every month to debt repayment... well above all minimum payment requirements. All other quirks and conditions being equal. The only differences ...
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2answers
1k views
What happens if you don't pay your credit card debt in Germany?
Thanks to COVID-19 I've lost my job, and I spent my money right and left very stupidly, and now I am in credit card debt of €3000.
The bank blocked my account due to nonpayment for 3 months, and today ...
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3answers
3k views
Are there countries where children are forced to inherit their parents' debts?
Are there any countries in the world where the debts of the deceased must be inherited by the deceased's heirs?
In the UK and USA, it seems to be well understood that if the deceased's estate is ...
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1answer
237 views
Where can I see at what price a company's debt is trading at?
I was reading Barron's today and came across the below quote -
Hertz’s debt somewhere in the range of 30-40 cents on the dollar. If
the stock actually were worth something, the debt ought to ...
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4answers
349 views
Is this method of getting free money viable and consistent with law?
A lot of credit cards these days give you an interest free period, say 24 months. They also allow you to transfer debt for a small fee, let's say 4%. This means if you keep the moving the debt around, ...
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1answer
82 views
Trying to understand the behavior of the bond market during the COVID19 crisis [closed]
I'm aware of several corporate bond indices that are (slightly) going up despite of the COVID19 crisis. For instance, let's take this corporate bond index as an example.
Choosing the 1Y chart one can ...
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0answers
102 views
What would happen to a typical investment portfolio if the dollar collapses?
Let's say I have an investment portfolio with diversified US stocks and diversified US bonds. How would a dollar collapse affect this portfolio?
And which component of the portfolio is less likely ...
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2answers
131 views
Is it better to start a new business using credit, even when I have money to invest
Suppose I have to start a new Limited Liability Company and the initial investment is 50000 dollars. Let's also suppose I have that money. No problem about it!
Now let's suppose something goes wrong ...
