Credit Risk Management Terms

noun a debt that is unlikely to be recovered or paid off

adjective referring to a debt that is considered unlikely to be repaid

• The company had to write off a significant amount of bad debt this quarter.
• I heard that John's business is struggling because of all the bad debt he's accumulated.
• Don't lend money to Mark, he's known for racking up bad debt.
• Ignoring your responsibilities is like accumulating bad debt in your life.

adjective describing something that cannot be collected or recovered

• The company wrote off the uncollectible debt as a loss on their financial statements.
• The business decided to forget about the uncollectible payment and move on.
• They knew they wouldn't see a dime of that uncollectible money, so they cut their losses.
• The uncollectible debt weighed heavily on their balance sheet like a dark cloud.