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.
Use debt in a sentence
Because I spent more money than I made every month, it didn't take long before I was seriously in debt.
My family was in debt, so I had to get a second job in order to help them out with finances and their well being.
We analyzed our debt and decided we could leverage our company better to most efficiently take advantage of the opportunity.
Why People Pay Down Debts"We often pay our debts not because it is only fair that we should, but to make future loans easier."