National Debt refers to the total amount of money that a country's government owes to creditors. This debt accumulates when a government spends more money than it collects in revenue, often through taxes. It can be financed by borrowing from domestic or foreign lenders, issuing bonds, or taking loans from international organizations. Governments typically manage their National Debt by making regular interest payments and refinancing existing debt. While some level of debt can be beneficial for funding public projects and stimulating economic growth, excessive debt may lead to financial instability and higher interest rates, impacting the overall economy.