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Definitions from WordNet

Definitions from the Web

Bad Debt

Description:

Bad debt refers to an amount of money that a borrower owes but is unlikely to ever repay. It typically occurs when a debtor fails to make the required scheduled payments and shows a high risk of defaulting on the loan.

Senses:

1. Noun: The amount of money or debt that is considered unlikely to be paid back.

2. Noun: Debt that has become uncollectible and must be written off as a loss by the creditor.

3. Adjective: Describing a debt that is unlikely to be paid back due to the debtor's inability or unwillingness to fulfill their payment obligations.

Usages:

Sense 1:

• The company had a significant amount of bad debt and had to make adjustments to its financial statements.
• Managing bad debts is a crucial aspect of financial planning for businesses.

Sense 2:

• The bank had to write off millions of dollars in bad debt last year.
• After continuous non-payment, the creditor had no choice but to consider the debt as bad debt.

Sense 3:

• The lender denied the loan application due to the applicant's bad debt history.
• Many people struggle to obtain credit cards or loans due to their bad debt status.

Related Products:

Check out related books and resources on bad debt:

• Managing Bad Debt
• Dealing with Uncollectible Debt
• Improving Your Credit Score