Debt

Debt is something that is owed. Commonly, debt relates to assets owed, but the term might also refer to obligations, goods, services, and other commitments not requiring or involving money (financial) transactions. Likewise, a debtor is someone who owes something to another. Debt and indebtedness are the natural consequences of credit, such as loans, mortgages, or credit cards. A basic loan is the simplest form of debt. It consists of an agreement to lend a principal amount for a determined period of time, to be repaid by a certain date. In general, the creditor in return receives interest from the debtor. When accounting debt as a matter affecting the national economy, one distinguishes between household debt (i.e., debt held by households), national or public debt ...