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Is rent considered a debt?
Would the minimum payment or full CC amount be considered monthly debt?What's the maximum amount I should spend on rent?What can cause rent prices to fall?How can a person with really bad credit history rent decent housing?Whom do I pay the rent to?If I'm the only one on the mortgage, do I have to count my significant other's payments as rent for tax purposes?First time home buyer - Need suggestions and views on few thingsHow to split rent/utilities fairlyCredit card minimum monthly paymentInvesting platform options without fixed residency
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I am taking a financial assessment. It asks me:
What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)?
Then the next questions are about household essentials and non-household essentials.
But should I include rent in any of this?
financial-literacy rent
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
add a comment
|
I am taking a financial assessment. It asks me:
What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)?
Then the next questions are about household essentials and non-household essentials.
But should I include rent in any of this?
financial-literacy rent
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
1
Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
41
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
6
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21
add a comment
|
I am taking a financial assessment. It asks me:
What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)?
Then the next questions are about household essentials and non-household essentials.
But should I include rent in any of this?
financial-literacy rent
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
I am taking a financial assessment. It asks me:
What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)?
Then the next questions are about household essentials and non-household essentials.
But should I include rent in any of this?
financial-literacy rent
financial-literacy rent
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
edited Oct 14 at 11:40
Rodrigo de Azevedo
4885 silver badges17 bronze badges
4885 silver badges17 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
asked Oct 13 at 14:35
Jossie CalderonJossie Calderon
3141 gold badge2 silver badges7 bronze badges
3141 gold badge2 silver badges7 bronze badges
1
Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
41
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
6
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21
add a comment
|
1
Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
41
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
6
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21
1
1
Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
41
41
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
6
6
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21
add a comment
|
6 Answers
6
active
oldest
votes
Rent is not a debt because you have not borrowed any money from the landlord.
Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service).
Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a liability.
(Overdue rent, though, is probably a debt, but you aren't asking about that...)
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
add a comment
|
The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills.
I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the distinction. The monthly rent, utilities, cable bill, etc, are not 'debt' and go in a different category.
To play devil's advocate, if the rent is $1000, how would you enter it? On 12/31 show $12K in debt due next year? Or just next month's rent?
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
add a comment
|
This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have.
An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly installments you need to pay.
A rent is not a loan because you do not own the property you rent. You just pay a monthly fee for using it.
How is a rent different from a debt repayment through an installment plan?
- An installment plan will end eventually when you paid all the required rates. A rent contract doesn't have such a finite goal. You pay as long as you live there.
- You can get out of the obligation to pay rent each month by canceling the lease and moving out. The only ways to get out of the monthly obligation to pay the rates for an installment plan are to repay it in full, renegotiate it or by declaring personal bankruptcy.
Note that rent can become debt paid through an installment plan when you don't pay it. When you miss a monthly rent payment, your landlord will then ask you how you intend to pay it. One option could be a monthly installment plan. For example, if you are supposed to pay $1000 rent per month and you missed one month rent, you could negotiate with your landlord that you pay $1100 for the next 10 months. That means you now pay $1000 rent per month and $100 debt repayment per month for the next 10 months.
answered Oct 14 at 9:36
PhilippPhilipp
13.1k3 gold badges30 silver badges42 bronze badges
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Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease agreement. If paid on time, rent is not debt. However, if not paid on time, like the product taken from the store, your rent is money owed for use of the premise--back rent is debt.
answered Oct 14 at 13:01
Jim FellJim Fell
6713 silver badges15 bronze badges
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There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored.
You should consider who is performing the financial assessment, and why.
Pending any further clarification from the original poster, I'm going to assume that someone is trying to decide if they should lend you money, and if so how much, and at what rate. But I'm only guessing and I could be wrong.
When someone is financially-assessing a possible borrower, all they're trying to do is answer one question: how likely is it that this person will default?
They are probably going to feel there is some difference, however small, between:
I'm making $2000 in debt payments every month, including rent
I'm making $500 in debt payments every month, and also $1500 in monthly rent
As other answers have indicated, all other things being equal, they're probably expecting you to provide them with your information in the second format.
answered Oct 16 at 19:55
RogerRoger
2074 bronze badges
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According to 11 U.S.C. § 101 (12)
The term “debt” means liability on a claim.
And as explained by the American Bankruptcy Institute:
the Eleventh Circuit held that a debt on a lease agreement is incurred at the time of signing and not when the rental payments become due
So at least in the United States, by federal law and federal court decisions, entering a rental agreement creates a debt at the moment the agreement is signed.
answered Oct 18 at 14:21
DavePhDDavePhD
4502 silver badges6 bronze badges
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protected by JTP - Apologise to Monica♦ Oct 14 at 12:49
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
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6 Answers
6
active
oldest
votes
6 Answers
6
active
oldest
votes
active
oldest
votes
active
oldest
votes
Rent is not a debt because you have not borrowed any money from the landlord.
Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service).
Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a liability.
(Overdue rent, though, is probably a debt, but you aren't asking about that...)
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
add a comment
|
Rent is not a debt because you have not borrowed any money from the landlord.
Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service).
Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a liability.
(Overdue rent, though, is probably a debt, but you aren't asking about that...)
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
add a comment
|
Rent is not a debt because you have not borrowed any money from the landlord.
Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service).
Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a liability.
(Overdue rent, though, is probably a debt, but you aren't asking about that...)
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
Rent is not a debt because you have not borrowed any money from the landlord.
Your current month's rent is a (very) short term liability, as are other payments for services rendered (like utility bills and maid service).
Future rent obligated by a lease agreement can also be considered a liability, or you can consider the cost of breaking the lease to be a liability.
(Overdue rent, though, is probably a debt, but you aren't asking about that...)
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
edited Oct 14 at 13:32
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
answered Oct 13 at 18:48
RonJohnRonJohn
25.9k7 gold badges49 silver badges96 bronze badges
25.9k7 gold badges49 silver badges96 bronze badges
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
add a comment
|
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
"Just because the debt, which arose on the date that the parties entered into a lease agreement, was contingent or unmatured, or not yet collectible on the date that the parties signed the agreement, does not mean that it was not a "debt' " courtlistener.com/opinion/1926495/…
– DavePhD
Oct 18 at 14:07
add a comment
|
The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills.
I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the distinction. The monthly rent, utilities, cable bill, etc, are not 'debt' and go in a different category.
To play devil's advocate, if the rent is $1000, how would you enter it? On 12/31 show $12K in debt due next year? Or just next month's rent?
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
add a comment
|
The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills.
I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the distinction. The monthly rent, utilities, cable bill, etc, are not 'debt' and go in a different category.
To play devil's advocate, if the rent is $1000, how would you enter it? On 12/31 show $12K in debt due next year? Or just next month's rent?
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
add a comment
|
The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills.
I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the distinction. The monthly rent, utilities, cable bill, etc, are not 'debt' and go in a different category.
To play devil's advocate, if the rent is $1000, how would you enter it? On 12/31 show $12K in debt due next year? Or just next month's rent?
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
The answer is a certain 'no'. There was a question along the lines of "How can one always be debt-free, given that we get monthly bills?" In that case, we make the distinction between an accumulated debt and regular bills.
I'd prefer not to argue word definitions, per se, or semantics. For purposes of such exercises, your highlighted quote helps make the distinction. The monthly rent, utilities, cable bill, etc, are not 'debt' and go in a different category.
To play devil's advocate, if the rent is $1000, how would you enter it? On 12/31 show $12K in debt due next year? Or just next month's rent?
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
answered Oct 13 at 16:49
JTP - Apologise to Monica♦JTP - Apologise to Monica
155k25 gold badges256 silver badges499 bronze badges
155k25 gold badges256 silver badges499 bronze badges
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
add a comment
|
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
1
1
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
Comments are not for extended discussion; this conversation has been moved to chat.
– JTP - Apologise to Monica♦
Oct 14 at 12:38
add a comment
|
This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have.
An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly installments you need to pay.
A rent is not a loan because you do not own the property you rent. You just pay a monthly fee for using it.
How is a rent different from a debt repayment through an installment plan?
- An installment plan will end eventually when you paid all the required rates. A rent contract doesn't have such a finite goal. You pay as long as you live there.
- You can get out of the obligation to pay rent each month by canceling the lease and moving out. The only ways to get out of the monthly obligation to pay the rates for an installment plan are to repay it in full, renegotiate it or by declaring personal bankruptcy.
Note that rent can become debt paid through an installment plan when you don't pay it. When you miss a monthly rent payment, your landlord will then ask you how you intend to pay it. One option could be a monthly installment plan. For example, if you are supposed to pay $1000 rent per month and you missed one month rent, you could negotiate with your landlord that you pay $1100 for the next 10 months. That means you now pay $1000 rent per month and $100 debt repayment per month for the next 10 months.
answered Oct 14 at 9:36
PhilippPhilipp
13.1k3 gold badges30 silver badges42 bronze badges
add a comment
|
This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have.
An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly installments you need to pay.
A rent is not a loan because you do not own the property you rent. You just pay a monthly fee for using it.
How is a rent different from a debt repayment through an installment plan?
- An installment plan will end eventually when you paid all the required rates. A rent contract doesn't have such a finite goal. You pay as long as you live there.
- You can get out of the obligation to pay rent each month by canceling the lease and moving out. The only ways to get out of the monthly obligation to pay the rates for an installment plan are to repay it in full, renegotiate it or by declaring personal bankruptcy.
Note that rent can become debt paid through an installment plan when you don't pay it. When you miss a monthly rent payment, your landlord will then ask you how you intend to pay it. One option could be a monthly installment plan. For example, if you are supposed to pay $1000 rent per month and you missed one month rent, you could negotiate with your landlord that you pay $1100 for the next 10 months. That means you now pay $1000 rent per month and $100 debt repayment per month for the next 10 months.
answered Oct 14 at 9:36
PhilippPhilipp
13.1k3 gold badges30 silver badges42 bronze badges
add a comment
|
This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have.
An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly installments you need to pay.
A rent is not a loan because you do not own the property you rent. You just pay a monthly fee for using it.
How is a rent different from a debt repayment through an installment plan?
- An installment plan will end eventually when you paid all the required rates. A rent contract doesn't have such a finite goal. You pay as long as you live there.
- You can get out of the obligation to pay rent each month by canceling the lease and moving out. The only ways to get out of the monthly obligation to pay the rates for an installment plan are to repay it in full, renegotiate it or by declaring personal bankruptcy.
Note that rent can become debt paid through an installment plan when you don't pay it. When you miss a monthly rent payment, your landlord will then ask you how you intend to pay it. One option could be a monthly installment plan. For example, if you are supposed to pay $1000 rent per month and you missed one month rent, you could negotiate with your landlord that you pay $1100 for the next 10 months. That means you now pay $1000 rent per month and $100 debt repayment per month for the next 10 months.
answered Oct 14 at 9:36
PhilippPhilipp
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This question of the financial assessment test is asking for your monthly repayment rate for any annuity loans you have.
An annuity loan is when you receive either a sum of money or goods/services worth a certain amount of money and then pay that money back over time through a monthly installment plan. The questionaire is asking you for the monthly installments you need to pay.
A rent is not a loan because you do not own the property you rent. You just pay a monthly fee for using it.
How is a rent different from a debt repayment through an installment plan?
- An installment plan will end eventually when you paid all the required rates. A rent contract doesn't have such a finite goal. You pay as long as you live there.
- You can get out of the obligation to pay rent each month by canceling the lease and moving out. The only ways to get out of the monthly obligation to pay the rates for an installment plan are to repay it in full, renegotiate it or by declaring personal bankruptcy.
Note that rent can become debt paid through an installment plan when you don't pay it. When you miss a monthly rent payment, your landlord will then ask you how you intend to pay it. One option could be a monthly installment plan. For example, if you are supposed to pay $1000 rent per month and you missed one month rent, you could negotiate with your landlord that you pay $1100 for the next 10 months. That means you now pay $1000 rent per month and $100 debt repayment per month for the next 10 months.
answered Oct 14 at 9:36
PhilippPhilipp
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edited Oct 14 at 12:52
answered Oct 14 at 9:36
PhilippPhilipp
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answered Oct 14 at 9:36
PhilippPhilipp
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answered Oct 14 at 9:36
PhilippPhilipp
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Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease agreement. If paid on time, rent is not debt. However, if not paid on time, like the product taken from the store, your rent is money owed for use of the premise--back rent is debt.
answered Oct 14 at 13:01
Jim FellJim Fell
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Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease agreement. If paid on time, rent is not debt. However, if not paid on time, like the product taken from the store, your rent is money owed for use of the premise--back rent is debt.
answered Oct 14 at 13:01
Jim FellJim Fell
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Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease agreement. If paid on time, rent is not debt. However, if not paid on time, like the product taken from the store, your rent is money owed for use of the premise--back rent is debt.
answered Oct 14 at 13:01
Jim FellJim Fell
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Debt is money owed to another for goods or services (or money) rendered. For example, if you took $5 worth of product from a store (other legal consequences aside), you would be in debt to that store for $5 of product taken. Rent is typically paid in advance for use of the premise for the upcoming month, or other unit of time specified in your lease agreement. If paid on time, rent is not debt. However, if not paid on time, like the product taken from the store, your rent is money owed for use of the premise--back rent is debt.
answered Oct 14 at 13:01
Jim FellJim Fell
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answered Oct 14 at 13:01
Jim FellJim Fell
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answered Oct 14 at 13:01
Jim FellJim Fell
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answered Oct 14 at 13:01
Jim FellJim Fell
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There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored.
You should consider who is performing the financial assessment, and why.
Pending any further clarification from the original poster, I'm going to assume that someone is trying to decide if they should lend you money, and if so how much, and at what rate. But I'm only guessing and I could be wrong.
When someone is financially-assessing a possible borrower, all they're trying to do is answer one question: how likely is it that this person will default?
They are probably going to feel there is some difference, however small, between:
I'm making $2000 in debt payments every month, including rent
I'm making $500 in debt payments every month, and also $1500 in monthly rent
As other answers have indicated, all other things being equal, they're probably expecting you to provide them with your information in the second format.
answered Oct 16 at 19:55
RogerRoger
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There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored.
You should consider who is performing the financial assessment, and why.
Pending any further clarification from the original poster, I'm going to assume that someone is trying to decide if they should lend you money, and if so how much, and at what rate. But I'm only guessing and I could be wrong.
When someone is financially-assessing a possible borrower, all they're trying to do is answer one question: how likely is it that this person will default?
They are probably going to feel there is some difference, however small, between:
I'm making $2000 in debt payments every month, including rent
I'm making $500 in debt payments every month, and also $1500 in monthly rent
As other answers have indicated, all other things being equal, they're probably expecting you to provide them with your information in the second format.
answered Oct 16 at 19:55
RogerRoger
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add a comment
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There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored.
You should consider who is performing the financial assessment, and why.
Pending any further clarification from the original poster, I'm going to assume that someone is trying to decide if they should lend you money, and if so how much, and at what rate. But I'm only guessing and I could be wrong.
When someone is financially-assessing a possible borrower, all they're trying to do is answer one question: how likely is it that this person will default?
They are probably going to feel there is some difference, however small, between:
I'm making $2000 in debt payments every month, including rent
I'm making $500 in debt payments every month, and also $1500 in monthly rent
As other answers have indicated, all other things being equal, they're probably expecting you to provide them with your information in the second format.
answered Oct 16 at 19:55
RogerRoger
2074 bronze badges
There are several good answers which have concentrated on the 'debt' and/or 'rent' part of the question. For something different and hopefully also helpful, I'm going to concentrate on the 'financial assessment' part, which almost everyone has ignored.
You should consider who is performing the financial assessment, and why.
Pending any further clarification from the original poster, I'm going to assume that someone is trying to decide if they should lend you money, and if so how much, and at what rate. But I'm only guessing and I could be wrong.
When someone is financially-assessing a possible borrower, all they're trying to do is answer one question: how likely is it that this person will default?
They are probably going to feel there is some difference, however small, between:
I'm making $2000 in debt payments every month, including rent
I'm making $500 in debt payments every month, and also $1500 in monthly rent
As other answers have indicated, all other things being equal, they're probably expecting you to provide them with your information in the second format.
answered Oct 16 at 19:55
RogerRoger
2074 bronze badges
answered Oct 16 at 19:55
RogerRoger
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answered Oct 16 at 19:55
RogerRoger
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answered Oct 16 at 19:55
RogerRoger
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According to 11 U.S.C. § 101 (12)
The term “debt” means liability on a claim.
And as explained by the American Bankruptcy Institute:
the Eleventh Circuit held that a debt on a lease agreement is incurred at the time of signing and not when the rental payments become due
So at least in the United States, by federal law and federal court decisions, entering a rental agreement creates a debt at the moment the agreement is signed.
answered Oct 18 at 14:21
DavePhDDavePhD
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According to 11 U.S.C. § 101 (12)
The term “debt” means liability on a claim.
And as explained by the American Bankruptcy Institute:
the Eleventh Circuit held that a debt on a lease agreement is incurred at the time of signing and not when the rental payments become due
So at least in the United States, by federal law and federal court decisions, entering a rental agreement creates a debt at the moment the agreement is signed.
answered Oct 18 at 14:21
DavePhDDavePhD
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According to 11 U.S.C. § 101 (12)
The term “debt” means liability on a claim.
And as explained by the American Bankruptcy Institute:
the Eleventh Circuit held that a debt on a lease agreement is incurred at the time of signing and not when the rental payments become due
So at least in the United States, by federal law and federal court decisions, entering a rental agreement creates a debt at the moment the agreement is signed.
answered Oct 18 at 14:21
DavePhDDavePhD
4502 silver badges6 bronze badges
According to 11 U.S.C. § 101 (12)
The term “debt” means liability on a claim.
And as explained by the American Bankruptcy Institute:
the Eleventh Circuit held that a debt on a lease agreement is incurred at the time of signing and not when the rental payments become due
So at least in the United States, by federal law and federal court decisions, entering a rental agreement creates a debt at the moment the agreement is signed.
answered Oct 18 at 14:21
DavePhDDavePhD
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edited Oct 18 at 14:28
answered Oct 18 at 14:21
DavePhDDavePhD
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answered Oct 18 at 14:21
DavePhDDavePhD
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answered Oct 18 at 14:21
DavePhDDavePhD
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4502 silver badges6 bronze badges
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protected by JTP - Apologise to Monica♦ Oct 14 at 12:49
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Answers will vary, but I generally view debt as longer term obligations (like a mortgage). Rent IS debt, but obligation is much shorter. I consider it more of a discretionary spend because I can choose to rent elsewhere. Sure, I need to live somewhere, but I can choose a cheaper place if I really need to.
– acpilot
Oct 13 at 14:59
41
I would not consider rent to be a debt, but rent is a very common expense, there should be a category for it somewhere.
– Mattman944
Oct 13 at 15:15
6
Rent is an expense, and it can be a liability, but it is not a debt unless it is overdue.
– Stobor
Oct 15 at 3:39
Rent and mortgage interest are in the same class of expense. But then mortgage interest is not a debt either. It can be confusing that principle and interest payments are wrapped into a single mortgage payment when they're two categories of payment - the interest is an expense and the principle is a debt. Classify interest as an expense since it's in the same category as rent and debt as the amount you owe.
– Stephen
Oct 16 at 6:58
A mortgage is not a debt as the house is collateral. You will only incur a true debt from a mortgage if you sell the house for less than the outstanding balance (negative equity).
– Smock
Oct 16 at 13:21