What are Arrears?

Debt, the symmetry of "credit rights", means that in the legal relationship of debt, the debtor is obligated to the creditor to take certain actions or not certain actions. For example, in a sales contract, the seller has to deliver the goods to be bought. The obligation of the recipient is a debt for a certain behavior. Another example is that in the publishing contract, the author has an obligation to no longer submit the manuscript to a third party for publication, which is a debt not for a certain behavior. The performance of the debt is the realization of the creditor's right. Debt and claims together constitute the content of debt. Debt is divided into different types according to different standards. According to the occurrence, it can be divided into contract debt and non-contract debt. Because of the number of debtors, it can be divided into single debt and majority debt. The liability relationship can be divided into joint debts by debt, and the selectivity of debt performance can be divided into original debts and selective debts.

Basic explanation

Obligations of debtors to pay off debts, sometimes also referred to as debts owed to work to pay off all debts

explain in detail

1. Debts owed. Bing Xin's "Two Families": "I heard that her economy is very tight, her debts cannot be cleaned up, and her children are small. I don't know how to live in the future!"

From the accounting point of view

Debt refers to the current obligations of the unit or individual, which is formed by past transactions and events, and is assumed by the unit or individual and is expected to result in the outflow of economic benefits from the unit or individual.

The usual form of debt is

Debt settlement

If the debt is settled by inventories, the debtor shall use the book value of the debt

Debtors cleared with long-term investments ^[2]

When paying off debts with fixed assets, the debtor should first clean up the fixed assets, then resell the debts at the book value of the debt, and deduct the book value of the debt

To

Judging whether the debtor's debt is forgiven or whether it constitutes debt joining has become a difficult point in trial practice. The author believes that if there is no clear agreement on whether the debtor's debt is forgiven, it should be presumed that the debtor's performance obligations should not be forgiven and should be characterized as debt addition. Because the waiver of civil rights must take the express meaning to express the legal effect, the implied meaning can only take effect under the circumstance that the laws and regulations have clear provisions, and the transaction custom or the parties have special agreement. At the same time, proceeding from the value orientation of protecting creditors, not forgiving the debtor's debt increases the protection of creditor's creditor's rights, and can better protect the interests of creditors.

Generally, with short-term repayments, you will quickly eliminate debt and pay at relatively low interest and cost rates.

If you choose a long-term payment or a lower recurring payment, it will definitely increase the interest on the total debt you have to pay. So when you have debt, you should consider it very carefully.

In a sense, a sure debt can meet your needs, otherwise, you will not be able to pay it back, or even spend your cash savings, cause you to go bankrupt, or greatly reduce your investment.

Good debt, or borrowed money, can be used to create a higher rate of return than the cost of borrowing. That is, loans can increase the value of assets. For example, in general, using a home equity loan can improve your house.

The main problem with this situation is that, although the value of the asset may increase, it may not generate sufficient cash flow and, if any, it will be used to repay debt.

Good debt can promote the appreciation of these assets: a home, a business, or a car business, education investment, and so on. At the sale price of a house, few people can afford it. But with a loan to buy a house, you can have a house to shelter yourself and your family.