Debt

Debt is that which is owed. A person or company owing debt is called a debtor. An entity to whom debt is owed is called a creditor. Debt is used to borrow purchasing power from the future. Companies use debt as a part of their overall corporate finance strategy.

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People or organisations often enter into agreements to borrow something. Both parties must agree on some standard of deferred payment, most usually a sum of money denominated as units of a currency, but sometimes a like good. For instance, one may borrow shares, in which case, one may pay for them later with the shares, plus a premium for the borrowing privilege, or the sum of money required to buy them in the market at that time.

Debtor: In economics a debtor (or a borrower) owes money to a creditor...

Creditor: A creditor is a party (e.g. person, organization, company, or government) that claims that a second party owes the first party some property or service. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that th...

Purchasing power: In economics, purchasing power refers to the amount of goods and services a given amount of money ? or, more generally, liquid assets ? can buy. As Adam Smith noted, having money gives one the ability to "command" others' labor, so purchasing power to some extent is power over other people....

Debt related Images and Photos (experimental)

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Generation Debt Take Control of Your Money A How-to Guide (Book)	The Nautical Debt of 1782 Engraved by Francis Jukes