Debt Definition
Debt is an amount of money that is owed by one person or entity to another. Debt can be in the form of a loan, credit, or bond. A debt is considered to be a liability, because it must be repaid with interest.
There are many types of debt, but the most common are:
Mortgage debt: This is a loan that is used to purchase a home. The borrower makes monthly payments to the lender until the loan is paid off.
Auto loan debt: This is a loan that is used to purchase a vehicle. The borrower makes monthly payments to the lender until the loan is paid off.
Student loan debt: This is a loan that is used to finance education expenses. The borrower makes monthly payments to the lender until the loan is paid off.
