negative debt

USAGE SUMMARY

'negative debt' is a correct and usable phrase in written English.
It is typically used to describe a situation in which someone has more assets than liabilities and has a net worth greater than zero. For example, you might say, "After making significant investments in the stock market, John had a negative debt of $50,000."

✓ Grammatically correct

News & Media

Wiki

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

"Economic growth is not going to get the country out of the negative debt trajectory it now faces," he said.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

My favorite is NVR, which has a 60percentt return on capital, a negative debt-to-capital ratio and $18 in cash per share on their balance sheet.

The New York Times

After years of budget surplus, the government has a negative net debt (debts minus assets) of 50% of GDP.

The Economist

We've had a very aggressive fiscal response because we started the cycle in surplus and negative net debt for the government, which none of these other governments have enjoyed".

The New York Times

In the new age of expensive, difficult-to-extract unconventionals, investment expenditures in production costs nearly match total revenues every year, and "net cash flow is becoming negative while debt keeps rising".

The Guardian

By April 2010, BG had combined negative assets, debt and received grants of NOK 240 million.

Wikipedia

It is not yet catastrophically intense, but surely it should be stopped before it gets worse when inflation turns negative.These debt-deflation dynamics are now even worse in the countries of the euro zone with the highest debt levels.

The Economist

As soon as the paper was released, many economists pointed out that a negative correlation between debt and economic performance need not mean that high debt causes low growth.

The New York Times

The negative side to debt settlement arises where numerous calls are made by collection companies to collect the debt.

WikiHow

2. There is a mild negative correlation between debt and growth.

The New York Times

Third, they point out that even cleaned-up data do show a negative association between debt and growth.

The New York Times

Expert writing Tips

Best practice

When using "negative debt", ensure you're clearly communicating that assets exceed liabilities. Provide context, such as the specific assets and liabilities involved, to avoid ambiguity.

Common error

Avoid assuming "negative debt" means simply having a lot of debt. It signifies a financial state where assets outweigh debts. Confusing it can lead to misrepresenting someone's financial situation.

Linguistic Context

The phrase "negative debt" functions as a noun phrase, describing a financial condition. Ludwig AI confirms that it's a usable phrase. It specifies a situation where assets exceed liabilities, thus resulting in a positive net worth, as showcased in the provided examples.

Expression frequency: Rare

Frequent in

News & Media

50%

Wiki

50%

Science

0%

Less common in

Formal & Business

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, the phrase "negative debt" describes a financial scenario where assets exceed liabilities. While grammatically correct and understandable, Ludwig indicates that the phrase is relatively rare. Primarily used in news media and occasionally in wiki contexts, the term conveys a strong financial position. When employing the phrase "negative debt", clarity is crucial to prevent misinterpretation. Ludwig AI confirmed the phrase's usability, reinforcing its validity within specific financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

net positive asset position

Replaces "negative debt" with a description of the financial state. Highlights the presence of more assets than debt.

surplus assets over liabilities

More formally expresses having more assets than liabilities; a technical and descriptive alternative.

positive net worth

Indicates an overall positive financial standing where assets exceed debts.

asset surplus

Focuses specifically on the surplus of assets, implying debts are less significant.

liabilities offset by assets

Emphasizes that liabilities exist, but are counterbalanced by a greater value in assets.

inverse debt

Suggests an opposite situation to traditional debt, meaning assets exceed liabilities.

favorable debt ratio

Indicates the debt is low when compared to assets.

creditor nation

In the context of a national economy, it refers to a country with external assets exceeding its external debts.

healthy balance sheet

Suggests a financial state with strong assets and manageable debt, offering a qualitative judgment.

strong financial position

A general phrase indicating financial health, of which "negative debt" could be a component.

FAQs

What does "negative debt" actually mean?

"Negative debt" means that an entity's assets are greater than its liabilities, resulting in a positive net worth. It's the opposite of being in debt, where liabilities exceed assets.

How is "negative debt" different from having no debt?

Having no debt simply means owing no money. "Negative debt", on the other hand, indicates having substantial assets that exceed any outstanding liabilities. It's a stronger financial position than simply being debt-free.

What are some alternative ways to describe a "negative debt" situation?

You can use phrases like "positive net worth", "asset surplus", or "surplus assets over liabilities" to describe a situation where assets exceed liabilities.

Is it common for individuals or companies to have "negative debt"?

While not universally common, having "negative debt" is a sign of strong financial health. It's more frequently observed in well-managed companies or individuals with substantial investments and savings.