Definition
A duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or lender.
Use of debt in an organization's financial structure creates financial leverage that can multiply yield on investment provided returns generated by debt exceed its cost. Because the interest paid on debt can be written off as an expense, debt is normally the cheapest type of long-term financing.
Articles related to 'debt'
Business Tips
Always live within your means: If you make it a habit to live within your means each and every day, you are less likely to go into consumer debt when gas or food prices go up and more likely to adjust ... Read more
More Tips
- Adding Comments to Your Credit Report
- Work Out a Plan with Lenders to Achieve a Better Credit Score
- Switch from Credit to Debit Cards to Achieve a Better Credit Score
- Cutting Up Store Cards May Result in a Better Credit Score
- Repairing Credit by Paying More Than the Minimum Amount Due
- Keep Your Credit Score High
- How People Pay for Debts of the Last Generation
- Why People Pay Down Debts
- Growth and Growth Rates
Questions related to 'debt'
- What is Consumer Debt Collection Software?
- Given a lien against a property and the debt is defaulted (no cash available) what then?
- Are accounts receivable considered cash on hand?
- What can I do about a debt that is about ten years old, and is still attracting interest?
- What liability does a partnership have from a limited partners debts?
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