What is Debt?

Posted by Matthew Rogers on May 12, 2013


The word debt comes from the Latin 'debitum' meaning 'thing owed'. It is typically money that is outstanding from one party to another however; it can also refer to goods or services. Usually debt is to be repaid under the obligation of a contractual agreement on the basis that it will be returned, plus interest, on or before an agreed date. So, in essence, debt is a transaction undertaken by two parties whereby one party chooses to put off turning over their side of the deal immediately.


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