What is debt?
Definition of debt
Debt is money that is owed by one party to another.
If you take out a loan from the bank, that is a debt because you owe that money back to the bank.
If you are in business and one of your customers owes you some money, that is also a debt that your customer owes to your business.
A business that owes money to another business is called a debtor.
A business that is owed money by another business is called a creditor.
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