Debt is an amount of money that is owed by one person, organization, or government to another. When a person borrows money from a lender, they are incurring debt, and they are usually required to pay back the borrowed amount plus interest over a certain period of time. Debt can come in various forms, including loans, credit card balances, mortgages, and other types of financial agreements.
Debt can be used to finance various expenses, such as purchasing a home, paying for education, or starting a business. However, excessive debt can become a burden and can lead to financial difficulties if the borrower is unable to make the required payments. It's important to manage debt carefully and ensure that the borrower can comfortably afford the payments and interest over the life of the loan.