You'll be amazed to learn that many individuals who owe money don't consider themselves in debt. You could possibly be among those individuals. That certainly, is a tremendous issue. In order for you to get your financial affairs in order, you must comprehend the debt definition. It's the lone way to understand how debt affects your life. !
Debt refers to any sum of money that's owed to some other party after being borrowed. While the dictionary meaning is very easy, most individuals decide to disregard it. You shouldn't be that ostrich that believes that burying its head in the sand is going to keep the lion from seeing and devouring it. !
For those who have borrowed money from a relative, an acquaintance, or an organization, together with the understanding that you'll pay it back, then consider yourself indebted. Until you've paid back each and every cent of the cash which you owe, in addition to the additional billed by the party that gave you the cash, the debt will hang over your head.
Do you recall that $100 that your cousin gave you with the understanding that you'll pay it back? It matters not whether your cousin grew up with you or not, you owe him a debt till you pay back the money he gave you. !
Have you got a student loan which has been deferred until you complete your studies? Well, those student loans are debts. Provided that you're expected to repay the amount of money you used to get a high level of academic certificate or degree, you're indebted to the organization or individual who supplied the loan.
Are you half way through paying for the car loan that you got to buy the most recent version of your favourite vehicle brand? It will not matter. Provided that you still owe your bank or car dealer some cash, consider yourself in debt.
Are you really taking a charge card balance which you have yet to pay off? So long as that balance is in existence, you're indebted to your charge card business. It will not matter whether the card has a zero percent interest rate or not. !
Posted on May 20, 2015 at 12:01 AM