Debt: What Is Debt

What Is Debt ? Debt is a financial obligation that must be repaid. In the modern world, a debt may be a large sum of money borrowed for a major purchase and repaid over time with interest. All debts are not created equal. Generally, there are two main types of debt : secured and unsecured. Within those types, you’ll see revolving and installment debt . Aside from the fact that you ... Learn what debt is, how it works, and why it matters for individuals, businesses, and governments. Explore the different types of debt , the risks and benefits of borrowing, and the strategies to manage debt responsibly. Top 10 countries with the highest debt -to-GDP in October 2025 list: The United States, the world’s largest economy, ranks 8th with a debt -to-GDP ratio of 125 per cent, while China (96.3 per cent) and India (81.4 per cent) rank 21st and 35th, respectively, lower than most developed nations.