Long-term debt refers to loans or financial obligations that are due for repayment in more than one year. This type of debt is commonly used by individuals and businesses to finance large purchases, such as homes or equipment. Examples of long-term debt include mortgages, bonds, and corporate loans. Long-term debt typically has lower interest rates compared to short-term debt, making it an attractive option for financing. However, it also requires careful management, as failing to meet repayment obligations can lead to financial difficulties. Understanding the terms and conditions of long-term debt is essential for effective financial planning.