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A debt can be described as a financial obligation where one party owes money to another, often characterized by a principal amount, interest rate, and repayment schedule. In the real world, this can manifest as loans, credit cards, or bonds, influencing individuals' and businesses' financial health. Debts can affect credit scores, purchasing power, and economic stability, illustrating their significant role in financial ecosystems. Ultimately, they represent a promise to pay that can lead to both opportunities and risks.

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1d ago

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