Debt

Payday loan businesses lend money to customers, who then owe a debt to the payday loan company.

Debt is an obligation that requires one party, the debtor, to pay money borrowed or otherwise withheld from another party, the creditor. Debt may be owed by sovereign state or country, local government, company, or an individual. Commercial debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest.[1] Loans, bonds, notes, and mortgages are all types of debt. In financial accounting, debt is a type of financial transaction, as distinct from equity.

The term can also be used metaphorically to cover moral obligations and other interactions not based on a monetary value.[2] For example, in Western cultures, a person who has been helped by a second person is sometimes said to owe a "debt of gratitude" to the second person.

  1. ^ Superior Court of Pennsylvania (1894). "Brooke et al versus the City of Philadelphia et al". Weekly Notes of Cases Argued and Determined in the Supreme Court of Pennsylvania, the County Courts of Philadelphia, and the United States District and Circuit Courts for the Eastern District of Pennsylvania. 34 (18). Kay and brother: 348.
  2. ^ "debt". Oxford English Dictionary (Online ed.). Oxford University Press. (Subscription or participating institution membership required.)

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