Definition of debt
1 Meaning of debtDebt, from the latin "dultum", is an obligation, legal or moral, that is with another, either person, physical or legal, or with the divine or with nature. Can as well due to our neighbor one hundred dollars for buying a bicycle, or because our water spout has been a deterioration to your wall; or we can be in debt with God for not attending mass, or nature for not recycling our waste.
Debts may legally arise by virtue of having entered into a contract, or for having committed a crime. There are debts that despite being born as executables, have ceased to be enforceable by the passage of time, that is what happens in the case of prescribed debt, that they only allow to stay with amount owed if the debtor pay voluntarily. Other cases of (natural) not enforceable debts are debts of game.
Public debt is having as a passive or debtor to state whether the creditor is another State or other States (external debt) or individuals of your country (internal debt). As proof of the commitment of payment issues titles, payable to a specific point in time, and interest-bearing. Internal debt is having the State with its own citizens. It is said that poverty, lack of housing or education, is a domestic debt of each State with its inhabitants.
Remission of debt is a way to extinguish it which consists that the creditor to the debtor returns documents allowing him to claim it.
2. Definition of debtDebt obligations to a third party, is called whether a natural person or a mere legal entity. The indebted part can also identify with a physical or legal person. The taking of debt is done for various reasons, the most important for the economy being those that relate to investment in productive areas. In return, the debtor must reintegrate the amount on a scheduled date, adding to the amount an interest representing the gain of the creditor.
It can distinguish between two types of debts. One is the public debt, which is the one that States are facing individuals, other States or international organizations of credit; This usually involves the issuance of titles of values. The other type of debt is called private debt, consisting of those obligations that keep individuals.
Also you can make the distinction between external and internal debt. The first is one that involves foreign creditors and has the advantage of avoiding the undermining of national savings. The second is that contracts with creditors of national origin. External debt has been a marker of international economic policy for many Nations in developing, with periodic need for refinancing with the goal of preventing financial crises. Remember even the debt crisis which characterized the Argentina earlier in the century and which led to the biggest world economic history default.
It is very important to say that, at present, the development of the economy without the issuance of debt is inconceivable. This allows different entities to provide liquidity when needed and plan in the medium and long term strategies that allow them to sustain itself financially. However, the debt doesn't always have positive consequences. Many times, this shrinks with speculative or reasons unrelated to an investment that encourages development. The final result of this incorrect and almost criminal use of debt is the lack of investment in critical areas for development, such as health, education, routes of communication, technology, the focus of energy resources, housing and many sensitive aspects that make the economy of a region or a complete nation.
Un ejemplo de mal uso de las herramientas crediticias puede ofrecerlo la crisis de las hipotecas subprime que se desató en 2007 y las consecuencias que esta tuvo en la crisis internacional de 2008. Básicamente, el problema consistió en la entrega de créditos hipotecarios con un alto grado de riesgo; cuando los inversores vieron señales de alarma y comprendieron que muchas instituciones bancarias y fondos de inversión tenían activos involucrados, el crédito se retrajo, afectando a toda la economía. Como consecuencia de este fenómeno, se desencadenó una crisis laboral, financiera y crediticia que desembocó en la pérdida de centenares de puestos de trabajo en las naciones desarrolladas, a predominio de Estados Unidos y el sur de Europa. En ese marco, se percibió la necesidad de la refinanciación de la deuda de Grecia y la necesidad de otros estados, como España, de tomar deuda en condiciones no favorables para evitar una catástrofe social.
De este modo, la deuda en sí misma no constituye un factor favorable o deletéreo, sino que su utilización de forma incorrecta o correcta es la que define su verdadero papel. Mientras que adquirir deuda para potenciar el crecimiento y el desarrollo permitirá la correcta devolución de esos activos después de verificar los réditos de la inversión, la disolución por mecanismos espurios de ese componente financiero sólo conduce a la generación de pobreza y devastación de recursos sociales, políticos, culturales e, incluso, naturales.
3 Concept of debtA debt occurs when a person either a natural or legal person gets a great responsibility. Debts are made when the person who made the loan needs some capital well reverse it or take it. The debt should cancel the total amount of debt in a timescale that is assigned according to several factors that may be, the amount, trust, and the veracity and checking what is going to run with this loan.
The debts have a sense of scale that will disagree to the nature of the need for the loan, if it is a loan that is requested to a friend, family member or friend that does not require any contract and instead be only of Word is called private debt, since it does not interfere any public regulatory body. Moreover, the public debt is the one acquired by countries in need of a loan billionaire to solve a problem determined certain promptly, in order to achieve stability in the country and generate resources stop to return it. It is important to stop this type of debt, countries in those cases create financial organizations with certain features of a stock exchange in order to expedite the passage of money between friends and involved countries.
The debt has been in some types of business and financing a useful and fundamental tool for the growth of investment. Countries or partners are protected each other borrowing, covering the backs in the event of any failure. A type of debt that has a very important guarantee, is not very positive and it is risky is the mortgage. It is to receive money from the Bank and this in Exchange for the debt while canceled deserves a guarantee in the form of good material: a House, a car, land or any property which exceed or equal the amount of the debt. The debt is given a period stop pay, if this does not comply with regulations the Bank takes permanent possession of the warranty.