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":
... 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 ...
... 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 ... be "written 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 ...
... 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 ...
... 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 the beginning of the Crimean War ... willingness to constantly refinance its debts ... the Decree of Muharrem which reduced the overall public debt, the Ottoman Public Debt Administration was established ...
... 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 ...
Famous quotes containing the word debt:
“However patriarchal the world, at home the child knows that his mother is the source of all power. The hand that rocks the cradle rules his world. . . . The son never forgets that he owes his life to his mother, not just the creation of it but the maintenance of it, and that he owes her a debt he cannot conceivably repay, but which she may call in at any time.”
—Frank Pittman (20th century)
“Mans 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 (17881824)
“There is, of course, a gold mine or a buried treasure on every mortgaged homestead. Whether the farmer ever digs for it or not, it is there, haunting his daydreams when the burden of debt is most unbearable.”
—Fawn M. Brodie (19151981)