debt


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Related to debt: Debt Financing, Debt relief

Debt

Money borrowed.

Debt

Any money owed to an individual, company, or other organization. One acquires debt when one borrows money. Generally speaking, one acquires debt for a specific purpose, such as funding a college education or purchasing a house. In business and government, debt is often issued in the form of bonds, which are tradeable securities entitling the bearer to repayment at the appropriate time(s). Occasionally, especially for personal loans, debt is issued without interest or other compensation; one simply pays back what was lent. This is exceedingly rare in business and a debtor almost always compensates a creditor with a certain amount of interest, representing the time value of money. However, some areas of finance, especially Islamic banking, do not allow debt with interest.

debt

See liability.

Debt.

A debt is an obligation to repay an amount you owe. Debt securities, such as bonds or commercial paper, are forms of debt that bind the issuer, such as a corporation, bank, or government, to repay the security holder. Debts are also known as liabilities.

debt

an amount of money owed by one person, company, etc. to another. Debts result from borrowing money to purchase a product, service or financial asset (e.g. INSTALMENT CREDIT). Debt contracts provide for the eventual repayment of the sum borrowed and include INTEREST charges for the duration of the LOAN. See DEBTORS. BORROWER.

debt

an amount of money owed by a person, firm or government (the borrower) to a lender. Debts arise when individuals, etc., spend more than their current income or when they deliberately plan to borrow money to purchase specific goods, services or ASSETS (houses, financial securities, etc.). Debt contracts provide for the eventual repayment of the sum borrowed and include INTEREST charges for the duration of the loan. An individual's debt can include MORTGAGES, INSTALMENT CREDIT, BANK LOANS and OVERDRAFTS; a firm's debt can include fixed-interest DEBENTURES, LOANS, BILLS OF EXCHANGE and bank loans and overdrafts; a government's ebt can take the form of long-term BONDS and short-term TREASURY BILLS (see NATIONAL DEBT). See PUBLIC SECTOR BORROWING REQUIREMENT.

See also INTERNATIONAL DEBT.

debt

An obligation to pay another.

References in periodicals archive ?
The Tax Court in Findley, 25 TC 311 (1955), stated that, in the case of a debt that has become partly worthless, the charge-off is an act "to perpetuate evidence of taxpayer's election to abandon part of the debt as an asset.
Debt consolidation is the replacement of multiple loans with a single monthly payment, often at a lower interest rate, over an extended period of time.
Shareholders run into problems when they have reduced or depleted their debt basis and the corporation repays any part of a shareholder loan.
For their part, ministers of finance in all too many emerging market countries tend to view rising emerging market debt prices as market validation of improved domestic economic fundamentals.
Perhaps one fifth of all debt owed by the world's poorest countries began as dubious loans to compliant dictators during the Cold War.
The primary implication of net-worth growth is that families are accumulating assets faster than liabilities, placing themselves in a stronger position to both take on and service debt through time.
Despite its increasing use, however, subordinated debt remains one of the least understood forms of financing currently available.
Financial commitments made in response to the debt relief campaign have, however, disappointed Jubilee supporters.
The United States Supreme Court in 1995 held that the term "debt collector" applies, to lawyers who regularly try to collect consumer debts, including attorneys who regularly engage in rent collection activities through litigation.
But just because the assumption of debt is fairly commonplace doesn't mean it shouldn't be treated cautiously or that other options shouldn't be considered.
The Securities and Exchange Commission (SEC) has issued a bulletin stating that debt should be pushed down if "(1) [Target] is to assume the debt of [Holding,] either presently or in a planned transaction in the future; (2) the proceeds of a debt or equity offering of [Target] will be used to retire all or a part of [Holding's] debt; or (3) [Target] guarantees or pledges its assets as collateral for [Holding's] debt.
We have also been carefully monitoring the effect of higher debt levels on the potential for sustained noninflationary growth in the U.