What is Debt?

[SolomonSollarsNSense]

That is a nice article. We've always asked that all the countries have their national debt but who exactly are they in debt to? Also it's nice to know (or horrible) the very cyclic nature of debt in yhe economy. I just hope i don't get in on that cycle for too long and immedietly pay for mine.

Yeah, it is indeed good to see an article that sheds more light on how debt system works in every sector or area. One way or the other, we have all been in this cycle somehow.
The only way anyone can rid this is just to be self-discipline and utilize effectively what they have which if we look at most people and even country, this is not the case. Nevertheless, since the invention of credit cards, it has even subjected people into more need to keep owing as much as they can.


[EllieBasti05]

Debt is a borred money, things, or materials from someone who has an excess numbers. Others are lending agencies or financial organizations (their business) that give priveledge to the person to borrow money. Ofcourse it is your responsibility to pay in specific dates.

If you cannot pay in due time, you will have a penalty, until they  sequestered your house, car and others that serves as a collateral which look like a barter.

[Lumi3004]

the debt record is in the form of a debt card held for each creditor, I read this about the matter of debt repayment today is an obligation that must be fulfilled from past debts,
I conclude there are three things here,
1. Short-term debt is a debt with a maturity of less than one year.

2. Long-term debt is a debt whose repayment will be made in a period of more than one year.

3. expenses that must be paid (Accruals payable), namely: an obligation that has become a burden (should have been paid).

[nbavba]

I found this an interesting interview about the history of money and debt.
 Check it out.

What is Debt? – An Interview with Economic Anthropologist David Graeber

David Graeber currently holds the position of Reader in Social Anthropology at Goldsmiths University London. Prior to this he was an associate professor of anthropology at Yale University. He is the author of ‘Debt: The First 5,000 Years’ which is available from Amazon.

Interview conducted by Philip Pilkington, a journalist and writer based in Dublin, Ireland.

Philip Pilkington: Let’s begin. Most economists claim that money was invented to replace the barter system. But you’ve found something quite different, am I correct?

David Graeber: Yes there’s a standard story we’re all taught, a ‘once upon a time’ — it’s a fairy tale.

wow, it was fascinating to read about it. There are a lot of things that I agree with you, it's helped me a lot. Thank for posting it and have a great day.

[Stedsm]

Money (paper money as physical form of finance) had always been a historical mystery that gave rise to this debt system to keep everyone under pressure that they owe something to someone else, and until that's given back, those people will be considered debtors and will be categorized (or I'd say discriminated on financial basis if they need more finance for their business or personal issues and won't get anything until they clear everything) in such a way that they will not be given priority in the society (and will even get criticized if they'll have a bad repayment history or overdue debts). Hats off and many thanks to Sir David Graeber for explaining such a misconceptualized topic in a brilliant manner. Had been here for so long but never saw such an interesting topic, or may have seen but missed it as I may have thought that the guy must be asking about what is debt, I learnt today that I should watch such topics as well because sometimes, we can find something interesting in them.

[tintinbongs]

Yes, it was interesting to know all of this. I just remember the evolution of money where before started with. Bartering, then comes gold, then metal coins,  comes paper money, then plastic cards (atm, debit, credit cards, reward card etc.), then electronic money the future is crypto currency. Dept are everywhere as long as money is involve.

[mensahkkofie]

Amazing topic for us all to think about, the explanation on debt was very informative and comprehensive when one takes time to read. I believe people need to understand that theories behind the various terminologies in economics always have a very rich history and explanation that is backing it.

[patarfweefwee]

Informative and very easy to understand. Hopefully alot of the young people here get to read this article in order to understand what essentially is debt and how it cycles in our financial life. This could also help urge them to invest their money more than save it in a bank. We should really make money work for us rather than the other way around.

[andriarto]

Informative and very easy to understand. Hopefully alot of the young people here get to read this article in order to understand what essentially is debt and how it cycles in our financial life. This could also help urge them to invest their money more than save it in a bank. We should really make money work for us rather than the other way around.

right, we can understand debt, and how to control and regulate it so that it can help in our lives, not vice versa. with good financial management of course with debt can produce something bigger

[RadjorBlade]

debt according to what I know is someone who agrees to borrow but after borrowing money or goods the person does not pay it or redeems it by returning or delaying to return the money or property he borrowed

Debt is someone who borrows from a financial institution where he has the obligation to pay within a certain period of time with the agreed interest. In the rules it is explained that if you cannot pay on time or break promises there are legal rules that will be applied.

[gabmen]

Informative and very easy to understand. Hopefully alot of the young people here get to read this article in order to understand what essentially is debt and how it cycles in our financial life. This could also help urge them to invest their money more than save it in a bank. We should really make money work for us rather than the other way around.

right, we can understand debt, and how to control and regulate it so that it can help in our lives, not vice versa. with good financial management of course with debt can produce something bigger

It's sometimes necessary for certain situations no matter what people do. There will be times for some people that their money just wouldn't be enough to make ends meet. And then it just snowballs from there.