Description: Debt is an obligation to pay money or another value to another party, which can arise from various financial transactions. Generally, it implies that a person or entity (the debtor) commits to repaying a specific amount of money or its equivalent to another person or entity (the creditor) within a set timeframe. Debt can be formalized through contracts that outline the terms of the loan, including interest rates, repayment schedules, and consequences for default. There are different types of debt, such as personal, corporate, mortgage, and public debt, each with specific characteristics and regulations. Debt is an essential component of the modern economy, as it allows individuals and businesses to finance projects, acquire goods and services, and manage cash flows. However, improper debt management can lead to significant financial problems, both at the personal and macroeconomic levels, such as debt crises and recessions. In the context of financial technology, debt takes on a new meaning, as it can be managed through various digital platforms, allowing users to access loans and credit in innovative ways, transforming how debt is conceived and managed in today’s economy.
