Debt

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

Famous quotes containing the word debt:

    A good debt is not as good as no debt.
    Chinese proverb.

    Capitalism is an art form, an Apollonian fabrication to rival nature. It is hypocritical for feminists and intellectuals to enjoy the pleasures and conveniences of capitalism while sneering at it.... Everyone born into capitalism has incurred a debt to it. Give Caesar his due.
    Camille Paglia (b. 1947)

    Pain and fear and hunger are effects of causes which can be foreseen and known: but sorrow is a debt which someone else makes for us.
    Freya Stark (1893–1993)