debt (kasalanan niyo bat mahaba ^^)

public debt

• government debt/national debt

• total outstanding financial obligations through borrowing

• used to finance public expenditures, development programs, and govt activities

financing budget deficits

Government borrowing helps cover funding gaps when expenditures exceed revenues, allowing public services and programs to continue without major disruptions

supporting infrastructure development

Public debt provides funding for infrastructure projects such as roads, bridges, schools, hospitals, and transportation systems that support national development.

promoting economic growth

Borrowed funds can be invested in productive sectors that increase employment, improve productivity, and strengthen long-term economic competitiveness

responding to emergencies and disasters

Public debt provides immediate financial resources for disaster response, recovery efforts, and other urgent situations requiring government intervention

promoting intergenerational equity

Borrowing allows the costs of long-term development projects to be shared by both present and future generations who benefit from them

maintaining economic stability

Public debt enables governments to support economic activity during downturns by financing programs that encourage investment, employment, and recovery.

classifications of public debt

1. productive and unproductive debt

2. voluntary and forced debt

3. internal and external debt

4. funded and unfunded debt

5. redeemable and non-redeemable dbt

6. short-term, medium-term, and long-term debt

produc

unproductive debt

voluntary debt

forced debt

internal debt

external debt

funded debt

unfunded debt

redeemable debt

non-redeemable debt

short-term debt

medium-term debt

long-term debt

borrowing the funds

spending the funds

raising revenue for repayments

actual debt repayments

classical theory

ne-classical theory

keynesian theory of public debt

role fo BSP

responsibilities of DBCC (development budget coordination committee)

functions of DBCC

debt stock

debt service

bureau of treasury

debt monitoring system

importance of public debt management

debt sustainability

debt consolidation

solvency

liquidity

vulnerability

automatic debt dynamics

primary balance

debt-stabilizing primary balance

key indicators of debt sustainability

debt-to-gdp ratio

debt service ratios

primary balance

external debt composition

growth and revenue trends

importance of debt sustainability analysis

debt consolidation

consolidation loan

balance transfer

refinancing

loan restructuring

bank debt consolidation

credit card balance transfer/balance conversion

internal restructuring with the same creditor

multi-creditor consolidation via one lender

court-relate arrangements

when to consolidate debt

1. mindset

2. motivation

3. credit offer

RA 386 (Civil Code of the Ph)

RA 3765 (Truth in Lending Act)

RA 9510 (Credit Information System Act)

RA 10174 (Data Privacy Act of 2012)

RA 1765 (Financial Products and Services Consumer Protection Act)

debt consolidation application process

1. initial assessment of the borrower

2. selection of program and creditor

3. submission of reqs

4. evaluation and credit investigation

5. approval, contract signing, release of funds