Differences between Debt and Equity

I found this article that can help you to understand difference between Debt and Equity.

Debt	Equity
Must be repaid or refinanced.	Can usually be kept permanently.
Requires regular interest payments. Company must generate cash flow to pay.	No payment requirements. May receive dividends, but only out of retained earnings.
Collateral assets must usually be available.	No collateral required.
Debt providers are conservative. They cannot share any upside or profits. Therefore, they want to eliminate all possible loss or downside risks.	Equity providers are aggressive. They can accept downside risks because they fully share the upside as well.
Interest payments are tax deductible.	Dividend payments are not tax deductible.
Debt has little or no impact on control of the company.	Equity requires shared control of the company and may impose restrictions.
Debt allows leverage of company profits.	Shareholders share the company profits.

List of bankrupt celebrities

History is filled with examples of wealthy people who have squandered their fortunes through poor money management. (Here’s a long list of bankrupt celebrities.)
Maybe you are not celebrity, but you can learn some tricks to improve your money management skills.

Getting rid of student debt

If you are not controling your student debt you will owe some money to someone until retirement.
First thing you have to do is make sure that you are not spending too much. Get yourself a student card and start using a lot of different discounts available to students.
If you alreadey have student debt the first thing that you have to do is see exactly how much money is owed (this can include credit cards, loans and store cards), and to put this in order of priority. For example, if the credit cards are incurring 14% interest, whilst 4% is charged on your loan, then paying off the credit cards should take priority. If you do not have the income to pay off all of the credit cards straight away there are a number of things that can be done:

a) transferring the balance to a 0% credit card;
b) speaking to your bank and asking them for terms to consolidate your credit cards (more then one quote should be obtained)
c) calling other debt consolidation companies and seeing what they can offer

Some students think that they can default on a student loan. Defaulting on a student loan is very difficult. The loan will be automatically written off by the government after 25 years, if not paid (DFES, 2006).