debt

noun
\ ˈdet How to pronounce debt (audio) \

Definition of debt

1 : sin, trespass Forgive us our debts.
2 : something owed : obligation unable to pay off his debts owe them a debt of gratitude a criminal's debt to society
3 : a state of being under obligation to pay or repay someone or something in return for something received : a state of owing deeply in debt to creditors
4 law, business : the common-law action for the recovery of money held to be due

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Other Words from debt

debtless \ ˈdet-​ləs How to pronounce debtless (audio) \ adjective

Examples of debt in a Sentence

He is trying to pay off gambling debts. The company has run up huge debts. Their debts are piling up. He's been working three jobs in an attempt to get out of debt. The company was in debt but is now turning a profit. I am deep in debt. I'm thousands of dollars in debt. She went into debt to pay for college. I'm worried that we will fall into debt.
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Recent Examples on the Web The investigation by The Associated Press in 2018 found that Khawaja’s company, Allied Wallet, helped merchants engaging in a variety of scams, including pornographers, debt collectors, and offshore gamblers. BostonGlobe.com, "An influential political power broker who was a witness named in the Mueller report was among eight people charged with conspiring to conceal the source of excessive contributions to groups supporting Hillary Clinton’s 2016 presidential campaign, the Justice Department announced Tuesday.," 5 Dec. 2019 The administration has said sales tax revenue hasn't kept up with expenses and debt payments at Great American Ball Park and Paul Brown Stadium enough to give the 30% rollback. Scott Wartman, Cincinnati.com, "Why you won't get full tax rollback from stadium: 'It's not responsible.'," 5 Dec. 2019 And that's a lesson for any other cities thinking that an easy trip through bankruptcy will shed their pension and other debt obligations and solve their problems. John Gallagher, Detroit Free Press, "Detroit's bankruptcy left lives of ordinary residents untouched, author says," 5 Dec. 2019 Until this year, Aramco had never published financial statements or borrowed in international debt markets. Matthew Martin / Bloomberg, Time, "Saudi Arabia’s State-Owned Oil Giant Just Raised $25.6 Billion in the World’s Biggest-Ever IPO," 5 Dec. 2019 For the first time in nine years, the city is able to abate — or not collect — additional taxes to pay off bond debt payments related to projects the city funded in the TIF, Lamberg said. Jennifer Johnson, chicagotribune.com, "Park Ridge seeks 6.4% increase in city’s property-tax levy after three years of reductions," 1 Dec. 2019 Over the last two decades, thousands of Puerto Ricans relocated to the states to seek jobs and economic security, particularly after the island found itself in a debt crisis in the tens of billions. Jason Duaine Hahn, PEOPLE.com, "‘Come Visit Us, Help Us’: Why Tourists Are Vital to Puerto Rico’s Recovery After Hurricane Maria," 27 Nov. 2019 Physician groups say high debt burdens discourage new doctors from working in primary care in rural or urban underserved areas, which tend to come with lower salaries. USA TODAY, "Seedlings to fall far from oak, bologna bust, snowboard pioneer: News from around our 50 states," 26 Nov. 2019 SolarCity’s huge debt load, questionable growth prospects, and family ties to Musk (as well as business ties to Tesla’s board) drew criticisms after the $2.23 billion acquisition was approved by Tesla’s board in 2016. Michael J. Coren, Quartz, "Workers at Tesla’s solar factory in New York describe a racist workplace," 26 Nov. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'debt.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of debt

13th century, in the meaning defined at sense 1

History and Etymology for debt

Middle English dette, debte, from Anglo-French dette something owed, from Vulgar Latin *debita, from Latin, plural of debitum debt, from neuter of debitus, past participle of debēre to owe, from de- + habēre to have — more at give

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Learn More about debt

Time Traveler for debt

Time Traveler

The first known use of debt was in the 13th century

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Statistics for debt

Last Updated

9 Dec 2019

Cite this Entry

“Debt.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/debt?pronunciation&lang=en_us&file=debt0001. Accessed 13 December 2019.

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More Definitions for debt

debt

noun

Financial Definition of debt

What It Is

In the business world, debt is an amount borrowed.

How It Works

For example, let's assume Company XYZ has invented a new product that will revolutionize the widget market. The company is certain there will be demand from billions of people around the world, and therefore it needs to build a new factory. If Company XYZ's funds for constructing the factory were limited to its cash on hand, say $200,000, it certainly could not build the kind of factory it needs to capitalize on this tremendous opportunity and would thus be very limited in its output and profits (and would leave the market wide open for competitors to fill the void). With some debt, however, Company XYZ could build the factory and take advantage of the profit potential of its product. The debt essentially magnifies the profits.

Debt comes in several forms, but in the business world, bank loans and corporate or government bonds are the most common.

Why It Matters

Debt is a liability, meaning that the lender has a claim on a company’s assets. Debt due within one year is generally classified as short-term debt on a company’s balance sheet. Debt due in more than one year is considered long-term debt. It is important to note here that debt commonly comes to mind when one considers liabilities, but not all liabilities are debt. Companies may incur several other types of liabilities, including (but not limited to) upcoming payroll, bonuses, legal settlements, payments to vendors, certain derivatives, contracts, certain types of leases, and required stock redemptions. Common balance sheet categories for liabilities include accounts payable, accrued expenses and debt.

Information about a company’s debt is a key component of accurate financial reporting and a crucial part of thorough financial analysis. Excessive debt can ruin a company but is not always detrimental. The use of debt financing can magnify profits that would have otherwise gone unrealized.

Source: Investing Answers

debt

noun
How to pronounce debt (audio)

English Language Learners Definition of debt

: an amount of money that you owe to a person, bank, company, etc.
: the state of owing money to someone or something
: the fact that you have been influenced or helped by someone or something

debt

noun
\ ˈdet How to pronounce debt (audio) \

Kids Definition of debt

1 : sin entry 1 sense 1 We ask forgiveness of our debts.
2 : something owed to another
3 : the condition of owing something I am in debt to you for all your help.

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debt

noun

Legal Definition of debt

1 : something owed: as
a : a specific sum of money or a performance due another especially by agreement (as a loan agreement) to pay the debts…of the United StatesU.S. Constitution art. I a debt for alimony
b : an obligation to pay or perform on another's claim discharged the debt — compare asset, equity sense 4

Note: It is often up to the courts to decide what is or is not a debt under various laws. Courts disagree whether criminal restitution is a debt under the Bankruptcy Code.

antecedent debt
: debt that is incurred prior to a property transfer paying or securing the debt — compare preference
bad debt
: a debt that cannot be collected

Note: An income tax deduction is allowed for bad debts.

consumer debt
: debt that is incurred by an individual primarily for the purchase of consumer goods or services — compare consumer credit
judgment debt
: a debt established by a judgment and enforceable by a legal process (as an execution of judgment or attachment)
c : a state of owing in debt
d : the aggregate of money owed the national debt
2 : the common-law action for the recovery of a specified sum of money or a sum that can be simply and certainly determined

called also action of debt, writ of debt

— compare assumpsit, covenant

History and Etymology for debt

Old French dette, ultimately from Latin debita, plural of debitum debt, from neuter of debitus, past participle of debere to owe

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More from Merriam-Webster on debt

Thesaurus: All synonyms and antonyms for debt

Rhyming Dictionary: Words that rhyme with debt

Spanish Central: Translation of debt

Nglish: Translation of debt for Spanish Speakers

Britannica English: Translation of debt for Arabic Speakers

Britannica.com: Encyclopedia article about debt

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