To increase liability debit or credit refers to the process of recording changes in one’s liabilities. Liabilities are amounts owed to others such as creditors, vendors, and lenders. When a company records a change in their liability by either debiting or crediting the liability account, they are increasing its overall balance. A debit increases the liability balance while a credit decreases it. It’s important for business owners to understand how these accounting terms work so that they can effectively manage their financial accounts. Increase liability debit or credit allows companies to accurately track their liabilities, giving them an up-to-date view of their finances.