Debt
Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.
A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in many cases, plus interest. Historically, debt was responsible for the creation of indentured servants.
D | Comments (2)2 Responses to “Debt”
Leave a Reply
[...] debt management programme is to manage someones debts without further borrowing which involves negotiating new terms such as lower payments and reduced [...]
[...] loan is a type of debt. The borrower needs to repay the lender the sum of money loaned part by part over time in order to [...]