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Debt Meaning and Definition in Dictionary

Definitions from Wordnet 2.0

  • an obligation to pay or do something
  • money or goods or services owed by one person to another
  • the state of owing something (especially money); "he is badly in debt"

Definitions from Wiktionary

  • the state of owing something (especially money); "he is badly in debt" ,
  • money or goods or services owed by one person to another ,
  • an obligation to pay or do something

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Debt Meaning and Definition in Wikipedia

Debt is what someone owes to someone else. Usually, debt is in the form of money, but it can also be items, favors, or other things.

Goods, services or money borrowed with the intent of repayment (in kind or not) creates a debt. Debt can be secured or unsecured in nature.

A secured debt involves the use of collateral, which is an asset that is obligated (promised) to the debt-holder until the debt has been repaid. If the repayment is not made in full, the lender gets the collateral asset. For instance, a car loan typically creates a secured debt. If you still owe money on the car loan and do not make timely payments, the note-holder can take back (or repossess) the car and sell it to get the money still due. A home mortgage is similar.

An unsecured debt is more risky to the debt-holder (the lender, also called creditor), because in the event of non-payment of the debt, the lender cannot take assets to help defray the loss incurred by not receiving the expected payment(s). Credit card debt is typically unsecured. If you charge items to a credit card and do not make the monthly payments, the credit card issuer can report the non-payment to the credit-reporting agencies. That will reduce your credit score so others won't lend, but they generally cannot repossess whatever you bought with the card.

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'Debt' example sentence in quotations

* The spirit in which a thing is given determines that in which the debt is acknowledged it's the intention, not the face-value of the gift, that's weighed. - Seneca

* We can pay our debt to the past by putting the future in debt to ourselves. - John Buchan

* A duty dodged is like a debt unpaid it is only deferred, and we must come back and settle the account at last. - Joseph F. Newton

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Debt Sample Sentences in News

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