Debt refers to the amount of money borrowed by individuals or entities that must be repaid, typically with interest. It can arise from various sources, including loans, credit cards, and mortgages, and is a common aspect of personal and business finance. Managing debt effectively is crucial to maintaining financial health and avoiding bankruptcy. There are different types of debt, such as secured and unsecured debt. Secured debt is backed by collateral, like a house or car, while unsecured debt, such as credit card debt, is not tied to any specific asset. Understanding the implications of debt is essential for making informed financial decisions.