Debt

Debt is an amount owed by one party to another, in goods or services. Debt may be secured (meaning that some specific piece of property is offered up as collateral and may be seized by the debtor in case of nonpayment) or it may be unsecured. Debt allows individuals, businesses and governments to meet current needs with future earnings. Because debt almost always involves a contractual agreement to repay, along with provisions for the accumulation of interest on the original amount owed, excessive debt can be dangerous for individual consumers. At the corporate level, debt must be balanced appropriately with assets in order to reduce the risks involved with debt. Debt at the national level has generally been disparaged and yet few governments seem to be able to avoid indebtedness