Is a secured loan or mortgage considered debt?
Lets say you buy a home for 0k, and put down a 0k payment and take out a 0k loan. The house was purchased for a fair, properly appraised value.
Does this mean that you are now 0k "in debt"? I read people referring to this as debt, but to me that doesn't make much sense. The house has a real value equal to the sum of your equity and your principle.
If a year down the road the house is reappraised for 0k, I could see how that would lead to "real debt" and being upside down in the loan, but as long as the assets securing a loan are worth more than the principle, is it correct to say that you are in debt?
Is there more than one context for "in debt" where it could be true in one sense, and not true in another?
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Yes, it means you are 0,000 in debt. If the value of all of your assets is greater than the value of all your debts, you have a positive "net worth." It doesn't change the definition of debt.
If you owe someone money, you are in debt.
Is there more than one context for "in debt" where it could be true in
one sense, and not true in another?
You may be thinking of the difference between secured and unsecured debts
Investopedia Link.
A secured debt is "backed by" collateral as you mentioned in your comment to quid. Therefore, it is easier to discharge, although sometimes expensive to do so. Even without realtor's fees, selling a house (at least in the United States), has recording and title fees.
Unsecured debit is based on credit worthiness, not any property.
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