What Are Debts?

Debt is essentially money borrowed from someone else. The person who borrows the money is called the borrower. The person who loans the money is called the lender. The lender will generally charge the borrower interest on the money borrowed which will be payable in addition to the repayment of the loan amount.

The word debt is also referred to as a loan, credit, iou, borrowing, liability, and money owing.

In today’s world, there are all sorts of debts available including:

• Credit Cards
• Store Cards
• Finance Loans
• Leases
• Hire Purchases
• Home Loans
• Car Loans
• Student Loans
• Higher Education Debts
• Tax Debts
• Personal Loans
• Lines of Credit
• Loans from friends and family
• Investment Loans

For more information on these types of loans and their advantages and disadvantages, please refer to the Comparing Loan Options section of our website.