Who are they, how do they live, what do they do? Find out all about them! Everything in the economy usually has specific terms to designate each thing, maybe you have heard about what we are going to understand better today.
What are creditors? By the etymology of the word we can already have an idea, we can imagine that it is something related to credit.
What is a creditor?
In practice, the creditor is the person or institution to which you owe something.
In the banking sector, the creditor also means one who has a positive current account balance There are four types of creditors:
It is he who has no preference in receiving, both in bankruptcy and in judicial reorganization.
Their credits are symbolized by checks, invoices and promissory notes.
Unlike the previous one, this creditor has the legitimate right of the guarantee, which is exercised over housing properties or mobile domains.
That individual or financial institution has a pledge title in its favor.
He receives the property from the debtor so that, in compensation for the debt, he can enjoy the fruits and income of the same.
Creditors are not just banks
It is normal to think that only financial institutions can be creditors because this is the first association we make with the floor. But, did you know that the biggest creditors of the Federal Government are people of flesh and blood?
The Federal Public Debt (DPF) stock rose 1.03% in December, and closed 2019 at $ 4,248 trillion. According to the Annual Public Debt Report released by the National Treasury, the public debt was divided into financial capital. Most are in the hands of pension funds, investment funds and financial institutions.
This means that through the National Treasury, the largest creditors of the Federal Government are represented basically by individuals who invest in securities. Even you, as an individual, can still be a creditor of your own bank, by investing in bonds issued by them to finance your credit operations.
You lend money to the bank in return for income from that debt.
In these cases, it is important to highlight a curious fact:
as the banks are not the ones that receive the most interest from Treasury bills, if hypothetically the Federal Government becomes insolvent – that is, decree bankruptcy, unable to cover its debts -, individuals are the ones that will lose the most money. Not the banks.
Technology popularizes investment
The evolution of digital technology has helped this movement a lot, since many Brazilians started to buy government bonds directly in the Treasury.
This is also because they are investments considered very safe.
People are attracted by the interest rate on these bonds, since they already know that the government will not fail to honor that debt when it matures.
In December 2019, Treasury Direct issues reached $ 1.818.97 billion.
Also according to the report released on the end of the year, the most sought after by investors was the Treasury Selic, which accounted for 56.18% of what was sold.
The Treasury Direct stock reached $ 59,645.44 billion.
Debtor: how to resolve your debt with your creditor?
What happens if you don’t pay your debts to your creditors?
You are in default and may have your name added to a register of individuals who act as a black list of bad payers in the national territory, the Fine Bank or Across Lender Group.
Still, all is not lost, right? You can renegotiate your debt and, for that, it is important to have safe help.
If you can do this quickly, then even better. This is the premise of Good Lenders Credit, to be a kind of credit mall where you can compare, choose which partner institutions can provide the best conditions and more.
What’s more curious, with taking out an online loan you can pay off your debt with your creditors or even become a creditor to the Federal Government, by using your money to buy debt securities.
Did you like this idea?