Types of debt
macy
Rep Points: 500
There are 4 types of debt, one is basic loan, syndicated loans, bonds and promissory notes. Basic loan is the simplest one that you just borrow a principal amount to be paid in a period of time with a corresponding interest. Syndicated loans are debt for companies that they can't acquire from a lender since they don't usually lend big amounts of money. Bonds are to be issued from large companies or governments with a corresponding number of years for repayment while promissory notes are simple documents with a promise to pay what has been owed.
I think credit cards are a little different than basic loan, but I see what you are saying here.
sigs
Rep Points: 510
macy,there is one more type of debt which you can add in that list. The debt owed by a country . There are many countries that have debts ranging into billions, for example pakistan owes billions of dollars to United Nations.
Oh, good point sigs!! LOL Thats a whole other show as Oprah would say!
macy
Rep Points: 500
I think that include in the syndicated loan sigs? What do you think? As it involves billions already.
Would you consider lending services of companies the same as promissory notes? After all, they do have a written and signed contract. If there's collateral involved, where does it fall?
sigs
Rep Points: 510
I think you said syndicated debts deals with a company. I am not talking of a company. Here i am talking of a nation as a whole which owes money to world bank . Are you sure this type of debt comes under syndicated debt?
neol
Rep Points: 250
No i dont think they fall under the category of syndicated loans. This is quite different.
You chould clear the issue out as my country owes billions of money from the country of US, hahaha. Elders would often say that even the unborn children already owes money to the US since our country can't pay them back in cash. The consolation about this is, our country's debt gets low when the value of Philippine money is high in the market.
good points, the credit card maybe a little diffrient.
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