Having a debt means that a person or entity has received something of value (such as money, goods or services) in exchange for a promise to pay or repay it in the future. In simple terms, it is a financial obligation that is acquired with a responsibility to repay it within a specified period of time, usually with interest.
Personal debt: Money owed by one person to another, to a bank or financial institution (as in the case of loans or credit cards).
Corporate debt: Financial obligations that a company takes on, such as loans for investment, project finance or the purchase of goods.
Public debt: Money owed by a government to domestic or international creditors, such as government bonds or loans from international organisations.
Debt is usually repaid in periodic instalments (monthly, quarterly, etc.), and the cost of the debt may increase due to interest or fees charged, depending on the agreed terms.
