Negative net worth: Your list of assets is long, but you have bought most of them on credit. So now you have more liabilities than assets. This often happens when you buy consumer goods on credit: you use them or their value depreciates very quickly, especially for small items like electronics. But the debt takes longer to pay back. Don't panic. Draw up a budget and cut the unnecessary expenses to pay back your debts and get out of the red! Negative equity: This is the situation when people buy a flat and take a loan (mortgage) to pay for part of the cost. If the property market collapses, or a motorway is being built near the complex, the value of the flat drops. But the loan is still there to pay. If the value of the property is lower than the amount still due, then it is negative equity.