What "debt" means in finance

Debt is a liability that arises when an individual, organization, or government borrows money or obtains goods or services on credit, with the obligation to repay the borrowed funds or value of the goods or services over time, usually with interest. Debt can take many forms, including bank loans, bonds, mortgages, credit cards, and other types of financing. High levels of debt can pose a risk to an entity's financial health if they are unable to make the required payments, leading to default or bankruptcy.