Overlapping Debt

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Definition of 'Overlapping Debt'

Overlapping debt is a situation in which a borrower has multiple debts that are due at the same time. This can be a problem if the borrower does not have enough money to pay all of the debts, and it can lead to default.

There are a few different ways to deal with overlapping debt. One option is to consolidate the debts into one loan. This can make it easier to manage the payments, and it may also result in a lower interest rate. Another option is to negotiate with the creditors to see if they are willing to accept a lower payment. If the borrower is unable to make any of the payments, they may be forced to declare bankruptcy.

Overlapping debt can be a serious problem, but there are ways to deal with it. If you are struggling with overlapping debt, it is important to speak to a financial advisor to get help.

Overlapping debt can also refer to a situation in which two or more companies have overlapping debt obligations. This can happen when two companies merge, or when one company acquires another company. In these cases, the two companies may have to renegotiate their debt agreements in order to avoid default.

Overlapping debt can be a complex issue, and it is important to get professional advice if you are involved in a situation where overlapping debt is a concern.

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