According to personal finance guru, Gail Vaz Oxlade, there is such a thing as “good debt” and “bad debt”. This “good debt” is caused by things such as car payments, student loans and mortgages. These are big purchases that most people cannot afford all at once, and this debt ultimately serves to enrich your life. The “bad debt” includes credit card debt and the dreaded payday loan debt. This type of debt is usually incurred by short-term wants and their interest rates are often high. Sometimes so high that you end up paying way more for an item than it is originally worth. This often creates a never ending cycle of debt. The best way to avoid this debt is to always pay off credit card statements in FULL. I know that this is easier said than done.
Our province is currently running a deficit. Provinces having a hard time staying in the black are a common crisis because provincial governments have the expensive responsibilities of education and healthcare while lacking in the revenue generated from taxes like the federal government has. It was not that long ago, March 2013 to be exact, that CBC reported that the Alberta debt from the time of Lougheed, Getty and Klein (1982-1992) caused by low oil prices was paid off. Once again oil prices are low and it looks like we are returning to debt and deficits in this province. This situation serves as a reminder that debt can always return. It is not something that happens just once, it can be a recurring problem.
Provinces and business often use bonds as a way of financing. These bonds are loans that one day have to be paid back to the lender. The lender or the purchaser of the bond also receives interest payments from the borrower. Small businesses can often receive small business loans from banks.When a bank has high levels of debt and feels that there is no way out they can often file for bankruptcy. When a company files for bankruptcy, all of its assets are liquated. The money from the liquidated assets are used to pay off creditors. Secured debt is also paid before unsecured debt. So if you are purchasing bonds make sure to purchase the secured over the unsecured for less risk. If the business is a corporation, the owners are not liable for any remaining debt. If the business was a sole proprietorship or a partnership, the owners are personally liable for the debt.
Debt is essentially a part of life, but not a very enjoyable one. More like a wisdom teeth being pulled or old age aches part.
The CMC annual networking conference will be held on Saturday, February 6 at the Derrick. This is a great opportunity to network with business professionals within your emphasis. The conference is especially recommended for third and fourth year students, but ALL management students are welcome. Emails were sent out to management students with a link to the eventbrite page to purchase $15 tickets. The cut off for purchasing tickets is February 2nd. The CMC is excited to announce that we are providing all 4 options for apparel: cardigans, sweatshirts, pullover hoodies and zip up hoodies. Orders will be taken the week of January 19-22 in Tegler, there will also be sample sizes in Tegler so that you can be sure to order the right size. The CMC will have a table set up from 12:00-1:00pm on Wednesday and Friday and one set up on Tuesday and Thursday between 10:40-11:10am. To get updates on what the CMC is doing keep checking our Facebook, Twitter, Linkedin or our web page. If you want to get involved or have any questions, email us at firstname.lastname@example.org. If you have any pressing concerns, the management student representative, Kira Pelletier has office hours between 9:30am and 10:30am on Tuesdays and Thursdays.