Debtors and Creditors (Economic Relationships)

Debtors and creditors are two sides of an economic relationship involving borrowing and lending. A debtor is an individual or entity that owes money to another party, while a creditor is the party that provides the loan or credit and expects repayment. This relationship is fundamental to financial systems, as it enables individuals and businesses to access funds for investments, purchases, or emergencies. Successful management of debts and credits ensures that debtors can meet their obligations while creditors receive their payments, maintaining trust in financial transactions.