Debt refers to money that is owed by an individual or organization to another party. It is typically incurred when an individual or organization borrows money to purchase goods or services or to cover expenses.

Debt can come in many forms, such as credit card debt, student loans, car loans, or mortgages. When debt is incurred, the borrower is typically required to pay back the money borrowed, often with interest.

High levels of debt can be problematic, as they can make it difficult to meet other financial obligations or achieve long-term financial goals. Managing debt often involves creating a plan to pay off outstanding balances, minimizing new debt, and making regular payments to creditors to reduce the total amount owed.