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Debt is money borrowed by one party from another. Corporations and individuals use debt as a method for making large purchases that they could not afford under normal circumstances. A debt arrangement includes the condition that the borrowing party pay back the money at a later date, usually with interest.[1]

There are several different types of debt, including bonds, loans and commercial paper.

The U.S. government issues debt in the form of securities to domestic and foreign investors, as well as corporations and other governments. U.S. debt-based securities issued include Treasury bills (T-bills), notes and bonds as well as U.S. savings bonds.


  1. Debt. Investopedia.