If you're new here, you may want to subscribe to my RSS Feed. If you subscribed before August 17, 2008, you will need to re-subscribe using the same link as the previous feed will soon no longer be operational. Thanks for visiting!
Have you ever wanted to borrow money but just never had the collateral that is needed? Many persons have been faced with that dilema. It is now possible to have an unsecured debt (spin-off from an unsecured loan). An Unsecured Debt is money that is borrowed without supplying any collateral. This means that anybody can now get a loan without needing to have a house or car or land.
This is a high risk debt, however, because if the borrower falls into hard times, the debt may never be fully repaid. Banks and other lending institutions implemented the Unsecured Debt policy to level the playing field, allowing just about anybody the ability to access a loan.
Current Liabilities are your generally debts that are due in less than 12 months. These include loans, creditors, etc. The short period within which the liability must be paid makes it a current expense, like here and now. The formula for Current Liabilities is
Fixed Assets + Current Assets - Net Worth (or Total Assets)
So if your Net Worth is $3,000, Current Assets is $1,600, and Fixed Assets is $1,900, then your Current Liabilities would be ($1,900+$1,600)-$3,000=$500.
