Topic: Are loans - part of debts? (Read 1348 times)
I can say that loans , is trully part of debts, because you owe money to any persons , lending firms , any banks or financial institution that offer this debts , they are things in which we are liable to pay this in terms ,so they are all parts at the end which is paynents.
Well, if you're asking a simple person like me, then I'd say that both loans and debts are the same. It just a fancy term.for the same beast. Much like lease and rent. Both the same bit one is seen on contracts the other on a sign board. Either way, someone will make a good distinction between the two.
Based on my understanding loan is specific and that is borrowing money. Crypto is considered as digital currency hence it could be borrowed by someone else. However, when one talks about debt then it could be in any form like borrowing money or even something that has been that one owe something which is called as debt. In summary, debt is general term of borrowing for it talks about money and good deeds and loan is a specific term for only borrowing currency. I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?
Loan should be considered as debt because it's still should be paid by the debtor. I don't know exactly how to explain how they are similar but based on my own narrow understanding, yes there are similar in nature.
I do not think their is any major difference between both the terms if any . Both are same itself to be true as both needs to be paid at the end of the day along with the interest from the person whom you have taken it. Also staying away from the debt/loan is beneficial as you would never have to be in tension to replay it on time or else interest will keep on accumulating on it.
Loans are debts. They have the both definition. But it just a rich name if you call it as loan. Loans have collateral, it can be something that you can pay if you cannot pay the amount of your loan at exact time. Loans and debts are liabilities and we must pay that for us not to have a criminal case.
Well, if you're asking a simple person like me, then I'd say that both loans and debts are the same. It just a fancy term.for the same beast. Much like lease and rent. Both the same bit one is seen on contracts the other on a sign board. Either way, someone will make a good distinction between the two.
right, both are same. in the trade balance, both are included in assets, where there will be a burden later in accordance with the rules to return them along with the agreed interest 
Well, if you're asking a simple person like me, then I'd say that both loans and debts are the same. It just a fancy term.for the same beast. Much like lease and rent. Both the same bit one is seen on contracts the other on a sign board. Either way, someone will make a good distinction between the two.
I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?
Loan should be considered as debt because it's still should be paid by the debtor. I don't know exactly how to explain how they are similar but based on my own narrow understanding, yes there are similar in nature.
I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?
One thing I have learned overtime is to see this from different perspective; but in simple terms, I do see it as a debt! Now depending on what you are using the cash to do and not using it on frivolous spendings. Your view as seeing the loan as debt will make you eager to want to pay it back/off soonest.
It is more like "all thumbs are fingers but not all fingers are thumbs".
If you are a company that took out a loan then that is your debt but not all your debt is loans, for example you could basically order something and use it to make something and sell it, for example apple orders silicon and electronics and all that in order to make their phones.
Now they have a debt to pay those silicons and electronics and all that but they pay it when they sell the phone, however they get more of that in order to make more phones and so forth, they have a "debt" but they are in constant payment state as well. Maybe apple doesn't do that, maybe apple has enough cash to buy it out right but you understand the example.
Any business that combines couple ingredients and make one new thing basically pays for the resource overtime and order more of it while still selling the last ones they made, that creates a "debt" which is not a loan. There could be thousands of different examples of how a debt works without actually taking out a loan. However loans are considered debt too.
If you are a company that took out a loan then that is your debt but not all your debt is loans, for example you could basically order something and use it to make something and sell it, for example apple orders silicon and electronics and all that in order to make their phones.
Now they have a debt to pay those silicons and electronics and all that but they pay it when they sell the phone, however they get more of that in order to make more phones and so forth, they have a "debt" but they are in constant payment state as well. Maybe apple doesn't do that, maybe apple has enough cash to buy it out right but you understand the example.
Any business that combines couple ingredients and make one new thing basically pays for the resource overtime and order more of it while still selling the last ones they made, that creates a "debt" which is not a loan. There could be thousands of different examples of how a debt works without actually taking out a loan. However loans are considered debt too.
I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?
I guess both are the same as we need to pay them both. Loans are good if you have this because you have business to build and it is more useful if that business are progressive. Debts do the same you have debts because you used that money for a business capital and this is a good debts and it will be a bad debts if you are asking money for debt just to buy the things you want. This is only in my own opinion. 
I'm unable to find a precise classification and/or similarity between the two words - debt and loan. Should we consider debts (where people are helped financially or in a way they want that help - and they need to pay it off either in instalments or at a go, be it through paper money or by any other means according to the agreement) as loans OR Is there anything that could help us classify both these terms and show some dissimilarities and differences between them?
One thing I have learned overtime is to see this from different perspective; but in simple terms, I do see it as a debt! Now depending on what you are using the cash to do and not using it on frivolous spendings. Your view as seeing the loan as debt will make you eager to want to pay it back/off soonest.
In my opinion debt and loan are the same, both needs to be paid back but debt is a broader term where you owe not only money but can also be in kind but loan is like smaller term reduced to monetary used. Whichever both need to be paid with or without interest.
Loans and debt taken together are considered as liability of the company.In the case of a company, money borrowed from banks is treated as loans and money raised by issuance of bonds to public is referred to as debt of the company.
I think yes, because when you lean a money with interest it is a debts. It needs to be paid before the due date.
A loan is anything that is borrowed, and it is expected to be paid back with INTEREST, While a Debt is mostly a sum of money own someone or an organization with or without interest, A debt can also be term as a loan.
Debt and loan are not the same thing, well technically not anyway.
One is created from the other like coal and heat.
When a money is borrowed by one person it is loaned by the other.
What is created is the debt.
One is created from the other like coal and heat.
When a money is borrowed by one person it is loaned by the other.
What is created is the debt.
Practically there is not much difference between loans and debt. Loans are money borrowed from someone. Debt is money paid to someone. Loans are part of debt. Debt can be in addition to loans as well.
They are the same thing and you need to pay it before the deadline. Otherwise, your collateral will be default and the owner will move to the giver of that loan. Something that you ask and then you need to pay equal to that thing before the deadline to pay the loan you asked before is the definition of debt. So, loans are debts.
I am not an Accounting graduate but debts and loans can be classified as liabilities both of which can be paid under accounts payable as well as loans payable, these two are both put in the credit side of your accounting sheet as both of them is a deduction in your money. The only difference I see is debts can be paid in full and one time payment while loans is paid within a fixed term as well as fixed price, the only time debts can be loans payable is when it will be paid in several fixed payments. I hope you understand my explanation about it.
I usually see and hear people use term debt in a bad sense; loan, on the other hand is the "business" term, without real negative impact. But in the nature of things, loans ARE debts, no matter how you look at it, or wiggle around it.
Jump to: