#baddebts

[georgemark099]

Why It’s Important for Kids to Understand Good Debt and Bad Debt?

Financial literacy is a vital life skill, and teaching children about good debt and bad debt early can set them on a path toward responsible money management. These concepts may seem complex, but breaking them down into simple lessons equips kids with the tools to make informed decisions in the future. Here’s why it’s crucial for kids to understand the difference between good debt and bad debt.

Understanding Good Debt

Good debt refers to borrowing money for purposes that create long-term value or generate future income. Examples include taking a loan for education, starting a business, or purchasing a home. These investments often pay off over time, helping to build assets or improve financial stability. By learning about good debt, kids understand the idea of borrowing as a tool to achieve goals, provided there is a plan for repayment and the investment has potential benefits.

For instance, a story about a teenager saving up to start a small business but needing a loan to cover the initial costs can illustrate the positive impact of good debt. Kids learn that borrowing responsibly can help achieve bigger goals when done thoughtfully and with a clear purpose.

Understanding Bad Debt

On the other hand, bad debt involves borrowing money for things that don’t offer long-term benefits or value. This includes spending on unnecessary items, luxury goods, or experiences that are quickly consumed and forgotten. Credit card debt is a common example of bad debt when it’s used to finance impulsive or extravagant purchases without a plan for repayment.

Teaching kids about bad debt can involve examples of how overspending can lead to stress and financial trouble. Through stories or real-life scenarios, they can learn that borrowing money without considering the consequences may lead to difficulties in the future.

The Importance of Financial Responsibility

By understanding good debt and bad debt, kids can develop a sense of financial responsibility. They learn that borrowing isn’t inherently bad—it’s the purpose and management of debt that matter. These lessons help them think critically about their spending habits and the long-term consequences of financial decisions.

For example, a child who understands the difference might save their allowance for something meaningful, rather than borrowing to buy a toy they don’t truly need. They also grasp the importance of budgeting and the value of saving for future goals.

Building a Foundation for the Future

Teaching kids about debt prepares them for real-world financial challenges. As they grow older and face decisions about student loans, mortgages, or credit cards, they’ll be equipped to make informed choices. Knowing the difference between good debt and bad debt helps them avoid common financial pitfalls and build a secure future. Teaching them these concepts early, such as through a good debt bad debt book, sets a foundation for responsible money management.

[technology098]

Exploring Current Expected Credit Loss solutions, transforming financial accounting by predicting credit losses, adhering to FASB standards

[wagonslearning]

Lending institutions are facing the heat with many accounts turning into Non-Performing Assets (NPA) post-pandemic. The difficulty in money recovery and uncertain cash flow is a huge deterrent to financing companies and banks in India, affecting balance sheets and bottom lines.

One of the major roadblocks in the process of debt recovery is the absence of deep collaboration between the borrower, & the collection & recovery teams

Enroll with Wagons Credit Collection and Recovery Skills Program, and learn about effective communication for result-oriented engagement and different ways to implement variation in relationship styles based on customer cohorts.

Program timings :- 

06th Nov | 6 hours | 10am-1pm, 2pm-5pm

13th Nov | 6 hours | 10am-1pm, 2pm-5pm

20th Nov | 6 hours | 10am-1pm, 2pm-5pm

27th Nov | 6 hours | 10am-1pm, 2pm-5pm

Click on the link below to register 🔗

https://wagonseducation.com/home/course/credit-collection-and-recovery-skills-level-2/102

For more information visit:

https://www.wagonslearning.com/

[gauravdwivedy]

Ex-RBI governors warn of NPAs delaying recovery - Times of India

MUMBAI: Domestic banks, which have the highest bad loan pile in the world, pose a huge risk to the recovery of the pandemic-ravaged economy unless the government rescues them, four former Reserve Bank governors warn in a soon-to-be-released book. While Raghuram Rajan blames excessive investments by companies and the exuberance of bankers, coupled with inability to act fast as the prime causes for NPAs (Non-Performing Assets), Yaga Venugopal Reddy opines that the bad loans are not only a problem but a consequence of other problems. Duvvuri Subbarao sees NPAs as a big and real problem that needs to be contained, and Chakravarthy Rangarajan blames the lingering real sector problems, partly policy-driven most recently seen with demonetisation, aggravated the crisis. "Yes, the bad loan problem is big and real," says Subbarao, who was the governor for five years from September 2008 to September 2013, in the book by senior journalist Tamal Bandyopadhyay titled 'Pandemonium: The Great Indian Banking Tragedy'. The author has interviewed the four former governors for the book that will soon be launched by Roli Books. And all of them say what is also big and real is the fiscal constraints of the government, pointing to its very weak finances crippled by the pandemic. State-run banks are in bad shape despite getting Rs 2.6 lakh crore in fresh capital in the past few years alone. Read the full article

[technology098]

Exploring Current Expected Credit Loss Solutions & Their Impact on Standards

The development of Current Expected Credit Loss (CECL) solutions is underway to address the requirements of a new accounting standard set forth by the Financial Accounting Standards Board (FASB). This standard aims to facilitate the rapid calculation of estimated future credit losses throughout the lifespan of various financial instruments such as loans, debt securities, trade receivables, and purchased credit deteriorated (PCD) assets.

Previously, financial institutions (FIs) relied on traditional methods that primarily focused on incurred losses, marking loans as impaired only when they were deemed unrecoverable. These losses were then accounted for as expenses within the allowance for loan and lease losses (ALLL). Additionally, the determination of bad debts by FIs was often based on previous year's losses, with the same amount earmarked for potential credit impairment in the subsequent year.

However, the updated guidance from FASB mandates a shift towards incorporating predictive information into the calculation of bad debt. This necessitates the implementation of the CECL model, which enables companies to anticipate and account for potential credit losses more effectively. By doing so, FIs can address the inherent delay in recognizing credit losses across all financial assets.

The CECL model fundamentally requires organizations to take a proactive approach in assessing their exposure to credit losses. Rather than relying solely on historical data, companies must now factor in forward-looking information to better anticipate potential losses and subsequently adjust their financial records accordingly. This entails recording impairment, thereby deducting from revenues to reflect the impact of these anticipated losses.

By embracing the CECL model, FIs can enhance their risk management practices by gaining deeper insights into the potential credit risks associated with their portfolios. This proactive approach enables institutions to allocate appropriate reserves for expected credit losses, thereby strengthening their financial position and resilience against economic downturns or unforeseen events.

Furthermore, the Current Expected Credit Loss model encourages greater transparency and accountability in financial reporting. By requiring companies to incorporate forward-looking information into their calculations, stakeholders are provided with a more comprehensive understanding of the potential risks and uncertainties inherent within the institution's financial statements.

Implementing CECL solutions involves leveraging advanced analytical tools and methodologies to effectively model and predict future credit losses. This may include the utilization of statistical techniques, machine learning algorithms, and scenario analysis to assess various factors that could impact creditworthiness and repayment abilities.

Moreover, the adoption of CECL solutions necessitates a collaborative effort across different functional areas within an organization, including finance, risk management, and IT. By fostering cross-functional collaboration, companies can ensure the successful integration of CECL methodologies into their existing processes and systems.

Despite the benefits offered by CECL solutions, their implementation may pose certain challenges for FIs. These challenges may include data availability and quality issues, complexity in modeling forward-looking information, and the need for ongoing monitoring and validation of CECL models to ensure their accuracy and effectiveness.

In conclusion, the development and adoption of Current Expected Credit Loss solutions represent a significant evolution in credit risk management practices within the financial industry. By incorporating forward-looking information into the calculation of expected credit losses, FIs can better anticipate and prepare for potential risks, thereby enhancing their resilience and ability to navigate uncertain economic environments.

[seoservice321-blog]

WHY TO CALCULATE BAD DEBT EXPENSE OF YEAR?

[elliottfinancialconsultants]

Not all debt is equal. Some types of debt are more harmful to your financial security than others. Often, we associate debt with poor financial decisions that hurt your financial plan. But there’s such a thing as good debt and bad debt. Having a financial coach can help you make better financial decisions by showing you how to tell the difference between the two and how to tackle them. If you’re unsure about how to approach your debt (good or bad) you don’t have to tackle it alone. Call Wayne Elliott at 519-220-0557 for a strategy that may help benefit you in the long term and make sense of your financial picture. http://bit.ly/35fI6PN

[linernotesandseasons]

“Are you with me now? Working like a mule / I’m pulling slow, on a rain black road / with a load I can barely feel / if you could come to me / if you could take away my mind / if you could fill me up, like an empty cup / that would be fine… No turquoise jewellery no / don’t bury me in silver, don’t bury me in gold / when I die, the earth as my bride / give me a dark & shady home… So are you with me now? Working like a mule / eventually, I’ll be set free / & that will be fine…” • Night one of three. Hiss in Colorado. Here’s hoping for deep cuts & hits, two hour sets, and some songs about rivers & spirits & children. Hiss Hallelujah hum golden messenger magic against the madness & darkness… Eventually, I’ll be set free. And that will be fine… • #thecalmbeforethestorm #hiss #balthazar #baddebt (at Washington's FoCo) https://www.instagram.com/p/CaqfGD-MDE1/?utm_medium=tumblr

[raxsonic]

The Supplier Squeeze Does your business have a scenario where... https://www.raxsonic.com/sys/the-supplier-squeeze/?feed_id=139&_unique_id=609408847edda&utm_source=Tumblr&utm_medium=erikvs68&utm_campaign=FS%20Poster #baddebt #change #suppliersqueeze

[muds-management]

Follow Posts by Jasleen Kaur and discover new great blogs.

[calldmg-blog]

Don’t start your year off struggling for reasons out of your control. Call and see if we can help. You have nothing to lose but so much to gain. . . . #bankruptcyattorney #bankruptcylaw #bankruptcy #dothanbankruptcy #wiregrassbankruptcy #circlecitylawyer #iglaw #debt #debtreliefsolutions #deptrelief #deptlawyer #badcredit #credit #deptfreejourney #deptfreedothan #foreclosure #foreclosurehelp #fireclosurelifted # credit score #baddebt #baddeptremoval #alabamalaw #alabamadept (at Dothan, Alabama) https://www.instagram.com/p/CJrfcVCgOpq/?igshid=a34z82uf4ae0

[3rdeyezoe]

They didn’t forget they were hoping you forgot and when you remind them they switch... LISTEN if you owe me #money during this time and you want me to understand times are hard ... then do like you do your #creditors tell me a #date you you can pay. Give me hope at least til then stay out my #face because when the tables were turned you were #stank #rude and #unwavering and now I’m keeping that same #energy ... when you can #dish it but can’t take it ... #paymewhatowe stop lying to yourself cause you not lying to me .... And this the very last time you gone have to worry about owing me anything ... no your word is no good... #baddebt #debtcollection #moneyowed #moocher #shoeonotherfoot #baller #paymewhatyouowe #selectivememory https://www.instagram.com/p/B_HsYmwpuk7/?igshid=ewlh7ymov17j