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What is debt explain?

Debt can be simply understood as the amount owed by the borrower to the lender. A debt is the sum of money that is borrowed for a certain period of time and is to be return along with the interest. The amount as well as the approval of the debt depends upon the creditworthiness of the borrower.

What is defined as debt?

Debt is anything owed by one person to another. Debt can involve real property, money, services, or other consideration. In finance, debt is more narrowly defined as money raised through the issuance of bonds. A loan is a form of debt but, more specifically, is an agreement in which one party lends money to another.

What is debt easy?

A debit is a record of the money taken from your bank account, for example, when you write a check. The total of debits must balance the total of credits. Synonyms: payout, debt, payment, commitment More Synonyms of debit.

What are the different kind of debts?

Debt often falls into four categories: secured, unsecured, revolving and installment.

What are the 3 types of debt?

Key Takeaways. The main types of personal debt are secured debt, unsecured debt, revolving debt, and mortgages. Secured debt requires some form of collateral, while unsecured debt is solely based on an individuals creditworthiness.

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