Debt | Definition, Etymology, Synonyms & Antonyms

Debt

Debt (noun)

Definition

It is a financial liability that one party owes to another. It is a result of borrowing money, goods, or services with the agreement to repay the amount borrowed, usually with interest, over a specified period of time. Debt can arise from various sources, such as loans, credit card usage, mortgages, or outstanding bills.

Etymology

The word debt comes from the Old French term det, which originated from the Latin word debitum, meaning something owed or to owe. The Latin term is derived from the verb debere, which means to owe or to be indebted.

Synonyms

  • Liability
  • Obligation
  • Indebtedness
  • Arrears
  • Financial obligation

Antonyms

  • Asset
  • Credit
  • Surplus
  • Wealth
  • Resources

Example

Sarah borrowed a significant amount of money from the bank to start her business, and now she has a considerable debt to repay. She has monthly installments to pay off the loan, including the principal amount and the accrued interest. Sarah is managing her finances diligently to ensure timely debt repayment and avoid any negative impact on her credit score.

FAQs (Frequently Asked Questions)

What is debt as a noun?

As a noun,  it refers to the financial liability or obligation that one party owes to another. It represents the amount of money, goods, or services that are owed and must be repaid.

What is an example of a debt?

An example of a debt could be a student loan. Let's say Sarah borrows $30,000 from a bank to fund her college education. The $30,000 represents her debt, and she must repay that amount to the bank over time, usually with interest.

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