Debt

Debt is the amount of money borrowed by one party from another individual, company, or organization. Used by many corporations and individuals as a method of making large purchases that they could not make under normal circumstances, this debt is used by firms to take up loans to either finance a working capital or acquisition. In business and government, debt is often used in the form of bonds, which are tradable securities. Under a debt agreement, the borrower obtains authorization to obtain an amount of money to be rapid on an agreed date, with serviced interest. The most common forms of debt are loans, including mortgages and auto loans, personal loans, and credit card debt.