A debtor is an individual or entity that owes money to another party, known as a creditor. This obligation can arise from various situations, such as loans, credit purchases, or other financial agreements. Debtors are responsible for repaying the borrowed amount, often with interest, according to the terms set in the agreement. Debtors can be individuals, businesses, or even governments. When a debtor fails to meet their repayment obligations, they may face legal consequences, including bankruptcy or foreclosure. Understanding the role of a debtor is essential in the context of personal finance and the broader economy, as it affects credit systems and financial stability.