A Money that is owed by one person or business to another. occurs when one person (the A person who owes a debt.) owes money to another (the The person or organisation to whom a debtor owes a debt.). People can get into debt in any number of ways; they receive regular demands for payment of accounts for such things as electricity, doctors’ fees, loans and A debt that does not have to be paid until some future time. Being allowed to pay later, in the future, for something you are getting now. cards.
If you, as a debtor, receive an account, then ask:
- Do you owe the creditor the money?
- Is there any reason why you shouldn’t pay the debt?
- Can you afford to pay the debt?