Definition - What does Debt mean?
Debt, generally speaking, refers to any monetary obligation that a person has to another person or entity as a result of a legal obligation and/or a contract. In other words, debt is created as a result of receiving goods and/or services without paying for them at the time the goods or services are received.
Justipedia explains Debt
The most common type of debt is credit card debt. When a person uses their credit card, they are not paying for the goods or services they receive at that moment. Rather, they have a bank that is promising to insure the payment of these goods or services. Then, typically, at the end of the month, the person will receive their credit card statement which will tell them how much debt they are in. Until that amount is paid, that person is in debt to their credit card carrier.