A debt is an obligation owed by one party (the debtor) to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.
A debt is created when a creditor agrees to lend a sum of assets to a debtor. Debt is usually granted with expected repayment; in modern society, in most cases, this includes repayment of the original sum, plus interest.
In finance, debt is a means of using anticipated future purchasing power in the present before it has actually been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.
Read more about Debt: Payment, Types of Debt, Debt Syndication, Letters of Credit, Accounting Debt, Inflation and Exchange Rates, Effects of Debt, Etymology, History of Debt, Criticisms, Levels and Flows
Other articles related to "debt, debts":
... The Ottoman public debt was a term which dated back to 4 August 1854, when the Ottoman Empire first entered into loan contracts with its European creditors shortly after ... willingness to constantly refinance its debts ... part of the Decree of Muharrem which reduced the overall public debt, the Ottoman Public Debt Administration was established ...
... When a consumer becomes severely delinquent on a debt (often at the point of six months without payment), the creditor may declare the debt to be a charge-off ... off as uncollectable." To banks, bad debts and even fraud are simply part of the cost of doing business ... However, the debt is still legally valid, and the creditor can attempt to collect the full amount for the time periods permitted under state law, which is usually 3 ...
... In economics, consumer debt is outstanding debt of consumers, as opposed to businesses or governments ... In macroeconomic terms, it is debt which is used to fund consumption rather than investment ... It includes debts incurred on purchase of goods that are consumable and/or do not appreciate ...
... Global debt underwriting grew 4.3% year-over-year to $5.19 trillion during 2004 ... It is expected to rise in the coming years if the spending habits of millions of people worldwide continue the way they do ...
... Subordinated debt is debt that ranks lower than ordinary depositors of the bank ... Only those with a minimum original term to maturity of five years can be included in the calculation of this form of capital they must be subject to proper amortization arrangements ...
Famous quotes containing the word debt:
“I wish the days to be as centuries, loaded, fragrant. Now we reckon them as bank-days, by some debt which is to be paid us, or which we are to pay, or some pleasure we are to taste.”
—Ralph Waldo Emerson (1803–1882)
“Man’s pity for himself, or for his son,
Always premising that said son at college
Has not contracted much more debt than knowledge.”
—George Gordon Noel Byron (1788–1824)
“The debt was the most sacred obligation incurred during the war. It was by no means the largest in amount. We do not haggle with those who lent us money. We should not with those who gave health and blood and life. If doors are opened to fraud, contrive to close them. But don’t deny the obligation, or scold at its performance.”
—Rutherford Birchard Hayes (1822–1893)