This page offers a summary description of the word “debt“. For most of us debt has a negative meaning, however almost everyone has some form of financial debt.
In financial terms, a debt is an amount of money borrowed from a lender. A loan debt can be solicited from a lender for a number of different purposes, either to an individiual (personal loans) or a business (business, company or corporate loans).
A debt owed by a borrower is usually subject to interest, which is determined definitively at the point the loan debt is agreed. The payment date of the loan is also fixed at the point the borrower formally signs the legally binding loan agreement.
Debt And Association
The word debt often has very negative connotations, for example when an individual has exceeded his/her ability to manage line, or lines, of credit that he/she has. In this scenario we think of terms such as bad debt, poor credit history, bad credit ratings et al.
The links on this page will direct you to other articles on FinanceGecko.com that relate to the subject of debt.