Debt: What Is Debt

What Is Debt ? Debt is a financial obligation that must be repaid. In the modern world, a debt may be a large sum of money borrowed for a major purchase and repaid over time with interest. Learn what debt is, how it works, and why it matters for individuals, businesses, and governments. Explore the different types of debt , the risks and benefits of borrowing, and the strategies to manage debt responsibly. Debt is the money borrowed by one party from another to serve a financial need that otherwise cannot be met outright. All debts are not created equal. Generally, there are two main types of debt : secured and unsecured. Within those types, you’ll see revolving and installment debt . Aside from the fact that you ...