Debt Definition: What Does ‘Debt’ Mean?
Debt is money owed by one party (the debtor) to another party (the creditor). Typically, the borrower repays the debt amount, including interest, within a time frame per the terms of the contractual agreement.
What Is Interest
Interest is a fee that is charged by a creditor to the debtor and is calculated as a percentage of the principal sum.
A bank, business, or an individual can issue debts to a debtor.