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Debt is created any time you borrow money. The debt is then owed until each scheduled payment is submitted, thus the term “installment debt.” This type of repayment plan is often used with mortgages, student loans, and auto loans, to name a few. Alternate names: Installment loan, installment credit, closed-end credit How Does Installment Debt Work? An installment debt is a popular financing method that allows you to purchase big-ticket items such as a home or car, using borrowed money instead of your own....

For example, if you have a car insurance policy with a $25,000 limit on collision coverage and you get into an accident that causes $30,000 worth of damage to your car, the insurer would pay a maximum of $25,000 to help cover the cost of repairs. How Insurance Works Before getting insurance coverage, you need to apply and get approved. As a part of the application process, the insurance company assesses the risks associated with insuring you and sets a premium based on that analysis....

The sale or exchange of any capital asset that’s not reported on another form or scheduleGains from involuntary conversions of capital assets not used in your trade or business, not including casualty or theftNon-business bad debtsWorthlessness of a securityThe election to defer a capital gain invested in a qualified opportunity fund (QOF)The disposition of interests in an QOF Corporations, partnerships, estates, and trusts would use Form 8949 for many of the same reasons....

Some common fundamental and technical indicators investors use to help determine whether a security is overbought include: Relative Strength Index (RSI): The RSI indicator measures the speed at which a security changes in price and is measured on a scale of 0-100. RSI above 70 may indicate the security is overbought, and an RSI score below 30 may indicate the security is oversold. Moving averages: A moving average is a time series of means that take the prices of each time interval and divide them by the number of intervals....

Here’s what to know about pension risk transfers, how they work, the different types, and more. Definition and Examples of Pension Risk Transfer In a pension risk transfer, sometimes referred to as PRT, companies eliminate the risk of defined benefit plans by transferring or ending their obligations to plan participants. Defined benefit plans have become less prevalent; far more companies now instead offer 401(k) retirement plans, a type of defined contribution plan....

Terry Vine / Getty Images $25,000 if you’re single, head of household, a qualifying widow(er), or married filing separately and you lived apart from your spouse for the entire tax year.$32,000 if you’re married and filing a joint tax return.$0 if you’re married, filing a separate return, and lived with your spouse at any time during the tax year. An Example of Provisional Income You would start with your gross income to calculate your provisional income....

Learn what specific performance is, how it works, and when it might be a factor in a lawsuit. Definition and Examples of Specific Performance Specific performance is a court order requiring a party that caused a loss to perform their promise as closely as possible, often in cases where a cash payment can’t replace what was lost. In a typical civil lawsuit where specific performance comes up, there is a plaintiff (“claimant”) and a defendant (“respondent”)....

Alternate name: Student loans For example, many borrowers apply for student loans through the U.S. Department of Education (ED). Known as federal loans, this type of student debt comes with fixed rates and flexible repayment options. How Student Debt Works To apply for student loans, you’ll start by filling out the Free Application for Federal Student Aid (FAFSA). This is a requirement if you want to receive loans from the ED, and you’ll need to submit a FAFSA form annually to receive the money you need to pay for school....

There are two types of job terminations: Voluntary: A voluntary termination of employment is a decision made by the employee. Voluntary termination includes resignation or retirement. Involuntary: Employment termination is involuntary when an employee is terminated by the employer. Involuntary termination may be due to the employee’s actions or behavior, in which case they are terminated for cause. However, involuntary termination might also happen if the company downsizes or lays off workers, conditions which are outside of the employee’s control....

The main culprit behind the current account deficit is the U.S. trade deficit. In 2020, it was $679 billion. Causes Why would the richest country on earth need to borrow money to sustain its economy? It’s because of the trade deficit. Americans spend more on imports than U.S. businesses export. The following factors contributed to the U.S. deficit’s size by driving investors to Treasuries. The global stock market crashes in 2000 and 2008 sent investors fleeing from stocks....

Still, while DEI serves as a powerful term that has had a major impact on the workplace, it’s important to understand that each of its components stands on its own. Although they are sometimes used interchangeably, each element of DEI carries its own significant meaning. Below, we’ll dig deeper into each individual term and why DEI matters as a whole. Defining Diversity Diversity refers to anything that sets one individual apart from another....

Definition and Examples of the Federal Home Loan Bank System Established in 1932 in the wake of the Great Depression and overseen by the Federal Housing Finance Agency (FHFA), the Federal Home Loan Bank (FHLB) System includes 11 banks in major cities around the U.S. About 80% of lending institutions in the U.S. rely on the FHLB System. Acronym: FHLB, FHLBanks Each FHLB lends to member financial institutions that issue real estate loans....

Here’s a closer look at how the Federal Reserve Bank of St. Louis works. Definition and Examples of the Federal Reserve Bank of St. Louis The Federal Reserve Bank of St. Louis is one of 12 regional banks that make up the U.S. central banking system. The regional banks work with the Board of Governors in Washington, D.C. and the Federal Open Market Committee (FOMC) to ensure our economy runs smoothly....

When a company manufactures or sells a product, it may choose to price it a bit higher because it’s for women. In most cases, the difference between these products and comparable products for men is very minor. It may simply be the color or package design. The pink tax makes it more expensive for women to buy what they need to live their everyday lives. For example, according to investment bank JPMorgan Chase, by many estimates, the pink tax costs women an average of $1,300 per year....

Learn more about thought leadership and what it means to inspire others with ideas toward new heights in your business or field. What Is Thought Leadership? A person or business who is described as a thought leader is one who knows their industry inside and out. They understand all of the influences, technology, market conditions, and people within their field. Thought leaders also understand their audience—who they are providing products and services for....

Alternate names: Monthly housing expense Here are some examples of common costs you may encounter when figuring out your total housing expense: Mortgage principal and interest (P&I)Home insurance, including flood and earthquake insurance if necessaryPrivate mortgage insurance if your total equity in the property is less than 20%Real estate taxesSpecial assessmentsGround rentSecond or additional mortgages on the propertyHomeowners Association (HOA) duesCo-op feesUtilities Of course, not all of the above costs may apply to your situation, so you’ll need to calculate for yourself what your total housing expense is by adding together your costs....

Alternate Names: Unemployment compensation, unemployment benefits, unemployment insurance payments For example, if you are laid off from your job in California because your company decided to do away with your position, you may be eligible to apply for and receive unemployment income of $40 to $450 per week. How Does Unemployment Income Work? In the United States, unemployment income is administered by state unemployment offices in partnership with the federal government....

Major employers including Walmart, Verizon, and Marriott make heavy investments in upskilling and reskilling programs. Many employer-sponsored programs focus on hard skills like coding, cloud computing, and digital marketing. But soft skills are also in demand—Verizon’s Skill Forward program focuses on communication and teamwork, as well as technical skills. In a ZipRecruiter survey, 93% of employers said that soft skills play a critical role in their hiring decisions. Upskilling can help you become better at your job, earn a promotion, or adapt to new challenges in your industry....

What’s the Difference Between Good and Bad Debt? When you use debt to finance things that can be consumed, you’re taking on bad debt. It is the kind of debt that creates an unhealthy financial situation. Examples of Good Debt A mortgage: You build equity in your home, and the money you pay toward the home can be seen as an investment. Many people view renting an apartment as just throwing money away, whereas you build equity when you purchase a home....

Sometimes telling the collector that they’re calling the wrong number isn’t enough. Often, they continue to call, even though you have informed them that the number doesn’t belong to the person they’re seeking. The agent you speak with might even mark the number as invalid. However, debt collectors use a computerized skip trace system to track down consumers. It’s possible that the system continues to confirm your number as being correct for that person....