debt

Debt is money owed by one party to another, typically resulting from borrowing funds or receiving goods or services with an agreement to pay later. It involves a contractual obligation to repay the amount borrowed, often with interest, over a specified period. People, businesses, and governments use debt to finance purchases, investments, or operations when they need more funds than they currently have. Managing debt responsibly is essential to maintaining financial health, as excessive debt can lead to financial strain, while well-managed debt can support growth and stability.