Debt is an obligation to pay back borrowed money or goods. It can also refer to the amount of money owed. When you borrow money, you are essentially taking out a loan and agreeing to pay it back with interest. The terms of the loan will specify the amount of money you owe, the interest rate, and the repayment schedule.
Debt can be a useful tool for financing major purchases, such as a house or a car. However, it is important to manage debt carefully to avoid getting into financial trouble. If you have too much debt, it can be difficult to make your payments and you may end up defaulting on your loans. This can damage your credit score and make it difficult to borrow money in the future.