Debts

Debts are amounts of money owed by an individual, business, or organization to another party, typically a lender or financial institution. They arise when someone borrows funds with the agreement to repay later, often with interest. Debts can include loans, credit card balances, or other financial obligations. Managing debt responsibly involves understanding repayment terms and ensuring payments are made on time to avoid penalties or damage to creditworthiness. While debt can be a useful tool for financing large purchases or investments, excessive or poorly managed debt can lead to financial stress and challenges in meeting other financial goals.