0
Why do people go into debt when they know that they will have to pay more for an item once they figure interest?
Wiki User
∙ 11y ago
In some cases the debtor has no choice in the matter. Sometimes an individual does not have the financial resources other then a line of credit to purchase items they need (rather then want). For example a vehicle, replacement of an expensive appliance, necessary home repairs, etc.
Likewise the only way to build good credit is to go into debt. Debt is not a "bad thing" as long as the debtor chooses wisely and maintains their contractual obligation.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is Rupee debt service?
Interest payments on and principal repayments on account of civilian and non-civilian debt in respect of Rupee Payment Area (RPA), are clubbed together and shown separately under this item. This is in line with the recommendation of the High Level Committee on Balances of Payments (Chairman: Dr. C. Rangarajan).
What is interest free credit?
Interest free credit allows you to buy an item such as a washing machine, car or sofa, then pay for the item over a period of time, usually around 2 years, in monthly instalments without any interest being charged (interest free).
Is mortgage loan a income or an expense?
Neither. The actual loan is a capital item and the interest on the loan is an expense for the borrower but income for the lender. The only time the loan itself becomes an expense item is when the unrecoverable portion needs to written off and then it becomes a bad debt. Repayment of the loan is entirely on the asset accounts for both the borrower and lender.
What is the difference between secured debt and unsecured debt?
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
How do Pawnbrokers make money?
Pawnbrokers typically make their money on the interest rates of the products that are brought in as a type of secured loan. In order to get the item back, one must pay the amount the pawnbroker offered, plus interest. If the item is not paid off with interest, then the pawnbroker is within his or her rights to resell the item to another customer, usually for a higher price.
What is the largest federal budget item for 2010?
iNTEREST ON THE DEBT
Can creditor go after you discharged in court for a secured item?
A creditor cant take you to court over a secured debt. However, if they have a security interest in any of your property, they can still foreclose on that property.
What is a budjet?
A budget, is a set amount of money you can and will spend on a set item or event. Often times people set these to keep from going into debt.
What is the value of a Rexall Drugstore 1949 wheat penny?
It's a novelty item with no interest to coin collectors. However it may be of interest to people who collect Americana or corporate memorabilia.
If the expenses for producing an item are more than what you can sell it for you will experience a what?
debt
What if the expenses for producing an item are more than what you can sell it for what will you experience?
debt
What is Rupee debt service?
Interest payments on and principal repayments on account of civilian and non-civilian debt in respect of Rupee Payment Area (RPA), are clubbed together and shown separately under this item. This is in line with the recommendation of the High Level Committee on Balances of Payments (Chairman: Dr. C. Rangarajan).
Why do people like bmx racing?
Because they are for stunts and ramps and a lot of people such as me take interest in that because they are fun and bmx's are also a fashion item/ they are "cool".
What item is found in the kings cake?
A figure. Whoever finds the figure gets a crown.
What is item 2 in the PowerPoint figure?
All of the above
What is accrual interest?
Interest accrual can be an income item or an expense item where there has not yet been a cash transaction. So, if a bank investment or a loan calls for annual interest payments, you would accrue interest each month for one-tweflth of the annual amount.
Where are the verbs in this sentence The hard plastic doll with an exaggerated figure was a very unusual item?
The verb is was."The hard plastic doll with an exaggerated figure was a very unusual item."
