Most debts—such as credit cards, home loans, and auto loans—are categorized as secured, unsecured, revolving, or mortgaged. Corporations often have varying types of debt, including corporate debt. Corporate debt involves the issuance of bonds to investors to generate capital, often for projects.

Government debt may be issued by sovereign states as well as by local governments, sometimes known as municipalities. Companies also use debt in many ways for capital expenditures and other business investments made in their assets, “leveraging” the return on their equity. This leverage, the proportion of debt to equity, is considered important in determining the riskiness of an investment; the more debt per equity, the riskier.

Explore our interactive heat maps, which track transparency according to key indicators. Launched in 1996, HIPC was designed to ensure that the poorest countries are not overwhelmed by unmanageable or unsustainable debt burdens. To date, 37 participating countries have received over $100 billion in debt relief. Before 債務重組 -19 pandemic, debt was already at record highs in emerging and developing economies. The pandemic is pushing a growing number of these countries into debt distress.

You can find information about budgeting and money management online, at your public library, and in bookstores. The debt service coverage ratio is the ratio of income available to the amount of debt service due . The higher the debt service coverage ratio, the more income is available to pay debt service, and the easier and lower-cost it will be for a borrower to obtain financing. Debt issued by the government of the United States, called Treasuries, serves as a reference point for all other debt. There are deep, transparent, liquid, and open capital markets for Treasuries. Furthermore, Treasuries are issued in a wide variety of maturities, from one day to thirty years, which facilitates comparing the interest rates on other debt to a security of comparable maturity.

Repayment periods are flexible; businesses can pay back the agreed-upon amount sooner, if possible, or later. In addition, business owners do not sell equity or relinquish control when using revenue-based financing. Lenders that provide revenue-based financing work more closely with businesses than bank lenders, but take a more hands-off approach than private equity investors. People are more likely to spend more and get into debt when they use credit cards vs. cash for buying products and services. The less transparent or further away from cash, the form of payment employed is, the less an individual feels the “pain of paying” and thus is likely to spend more. Examples of debt include amounts owed on credit cards, car loans, and mortgages.