What is Household Debt?

Family debt refers to the family's borrowing funds, including all debts, bank loans, bills payable, etc. owed by all family members to non-family members.

Household debt

Right!

Family debt refers to the family's borrowing funds, including all debts, bank loans, bills payable, etc. owed by all family members to non-family members.

Household liabilities are divided into short-term liabilities (current liabilities) and long-term liabilities according to the length of maturity. How long is the distinguishing standard? Liabilities that are due within a month can be considered short-term liabilities, and liabilities that are paid each month for more than a month or many years are considered long-term liabilities. For example, monthly repayment of a mortgage loan is long-term liabilities. The other method is based on one year. Liabilities due within one year are short-term liabilities, and liabilities more than one year are long-term liabilities.

In fact, the specific distinction between current liabilities and long-term liabilities can be determined according to your own financial cycle (payment cycle), such as different cycles such as weekly, monthly, bi-monthly, quarterly, and annual.

Household debt can also be classified by the type of content of the debt. Jiacaitong financial management software is classified according to the following methods, as follows:

-Loans (bank loans such as housing loans, car loans, education loans, consumer loans, etc.)

-Debt (debt, accounts payable)

-Taxation (personal income tax, inheritance tax, sales tax, etc.)

-Payables (short-term bills payable, such as rent payable, utilities, interest payable, etc.)