Are loans - part of debts?

[Stedsm]

I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?

[audaciousbeing]

I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?

Its kind of hard to differentiate the two because in accounting terms they are both liabilities on the part of the company and even to an individual its something that would need to pay back to the person who advanced it initially. But understanding that there is a difference between the two is why there are two different names. Simply state that a loan is one time liability while debt is an accumulation of loans. Take an example, if Mr A wants to needs money, he will go out to ask for a loan but if these loans are now something he cannot recover from that have been accumulated, we can say that Mr A is in debt. #my opinion.

[Johnyz]

Loan is also consider as debt. Debt can be classified into two, bad and good debt. Bad debt is when you are doing this to buy something, and Good debt is when you are asking to make a Loan because you want to put up a business, I think that’s the only difference for this one. This is just my simple thought.

[paulspider]

I see loans to be a portion of debt incured because I understand debt to be an accumulated money you need to make due payment when the time is due.

[Okrah]

I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?

I think loans are type of debt. We are borrowing something because we need it. The term debt is broader than loan because you can borrow not only money, but also things or something someone had done in your favor or did help save you. Loan is basically a  financial matter.

[uozer]

To me, Both Debts and loans are liabilities that must be redeemed. Debt is the major owing that must be refunded in most cases wholesomely at an agreed date. But Loans is the smaller aspect of Debt that might be paid back on installment basis based on the mutual agreement between the parties involved.

[sheenshane]

Actually, it's hard to differentiate between these to words the debt and the loan whereas it is both liabilities that at the end we need to repay from where we borrowed. A loan is an amount that we lend or that we borrowed from individuals. While on the other hand, debt represents an accumulative amount a person can be borrowing from a lender or borrower and it is liable to pay the interest until you've got all paid the principal amount that you've borrowed. Indeed, all of these are related to each other that you need to repay at the end.
 

[coly20032003]

As far as I think, loan is another type of debt. Because for loan, it is like you own the bank or other people some money, and you need to pay it back within a certain amount of time, that is similar to the definition of debt.

[dinoloverpete]

I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?

A loan is the act of lending someone money with an agreement for them to repay in the future. The loanee (receiver of the loan) is indebted to the loaner. AKA they owe them a debt. Therefore receiving a loan also means you have debt.

[Dudeperfect]

I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?

Instead of explaining anything in words, I would strongly recommend you to watch this episode and you will get the conceptual clarity on the whole system of debt.

* The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Episode 4.

Further, I am expecting a healthy discussion on this topic as it is something that is going to affect the entire 21st century on a global level.

[nl247]

Normally from my own understanding, whoever is taking a loan is indebted to the person or organization giving it which makes them to both go hand in hand.

At least from dictionary definition; loan is MONEY GIVEN TO someone for a period of time with a paid back promise.

Debt however is AN AMOUNT OF MONEY THAT YOU OWE someone, bank or company.

I guess that explains it all.

[1Referee]

It seems that everyone has its own opinion on what they think both loans and debt are, which is great because we shouldn't use a precompiled term for granted just because it's in a dictionairy.

In the end, the fundamentals are exactly the same. You have to pay back that what has been given (or whatever other term you want to replace given with) to you. It doesn't matter who the entity is you have to pay back, debt is debt regardless of its shape or form.

On another note, there are also student loans in my country. In this case you are still exposed to debt initially, but you will no longer have to pay it once you graduated. If you don't manage to graduate, you will have to pay back every single penny because it simply isn't your money to begin with.

[kolsernik]

Credit and debt can in principle be considered synonymous.One difference is that for the loan you have to pay more interest and for the debt is not.(If, of course, no written contract was signed by a notary).But as a rule, no one makes such contracts with debt

[Aikidoka]

I think loans are based on the people who can afford to pay back the money they borrowed, whereas debts are based on the people who cannot afford to pay back what they borrowed. We call them people who are in debts. Added to that, debt can be used as an adjective. For example; I am indebted to you. It means when someone does you a favor, you will feel that you will pay back the favor in the future. Both words do not have a big difference.

[Kapee]

I can say that loans are part of debts. Loans are not given for free since they will be payed back in a speculated time and debts are also seen to be settled with immediate effect. 

[St4yInTh3D4rk]

I don't want to explain what is the exact meaning of loan and debts but loan is also part of debt or one of its kind since we need to repay those loans too.But maybe we call that as loan when we are borrowing money from a bank where as when we borrow it from a person it can be debit!

[gunhell16]

For me Loans are already debts, you owe the money already once you get a loan.
At first before having the loan you will be informed or signed a paper with some interest to pay.
Therefore, for me it is already a debt. BUT, we don't need to be scared if the loan amount will be funded to a good business or project.
This will cover the future you will have. just make sure to do it at your best with care.

[HarmonyA]

Loans are debts because they are given with or without interest, and are expected to be redeemed without a specific period of time. Some loan are formal thus requires signing of documents, while some are informal thus no documentation. Either way, loans are debts because it is base on either verbal or written agreement and require adherence and return policy

[Stedsm]

So, watching all the comments above, should I take it as loans are debts itself and the only difference here is that - both have their own types (e.g.; secured, unsecured, collateralized, non-collateralized) and limitations (time duration, contract specifics) to be met and as well, the terms may be different but meaning will remain same in every genre they've been spoken, am I correct here?

[ylnar123]

I see loans to be a portion of debt incured because I understand debt to be an accumulated money you need to make due payment when the time is due.

I see it correct that loan is a part of your debt. Debt is the accumulation of your loans, be it salary loan, housing or car loans they are part of your debt which needs to be paid in an allotted time frame.