A creditor is an individual or organization that lends money or extends credit to another party, known as the debtor. Creditors expect to be repaid, usually with interest, over a specified period. Common examples of creditors include banks, credit card companies, and suppliers who provide goods or services on credit. Creditors play a crucial role in the economy by providing the necessary funds for individuals and businesses to make purchases or invest in growth. When a debtor fails to repay their debt, the creditor may take legal action to recover the owed amount, which can include seizing assets or garnishing wages.