Topic: Are loans - part of debts? - page 3. (Read 1348 times)
yes, what is the difference between borrowing and debt? both are the same. it's just that, when it borrows from the bank, there is an opportunity to pay in installments. but when owed to someone, it is better to pay in cash.
Whether it's a loan or for compulsory payment of religion, it has also been regulated, let alone borrowing futures or debts with a matter of days that are essentially different, the word destination remains the same.
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 agree that it is hard to define and classify between loans and debt. In my understanding, loans means something that given to use and take the advantages of it. And it should be returned back to the owner precise like the first time accept and base on the agreement. When the loan thing is broken, it should be changed by the similar thing and value. In other side, debt giving something to use and take the advantages and it should not return back with the same thing, but only same value. Sometimes we miss understand about the term of loans and debts, both are not similar. For example, sometime people probably say borrowing or lending money. It is not loans but debt because we should not returned back the same money while we borrowed. We just need to return money with same value.
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?
Based on what i had read on a site, when we are in financial mess unable to payback the loans we have taken from several lenders, we for a debt consolidation. The loans and debt are taken together are considered as liability of the company. 
two languages are different but the meaning is the same, a little different if the language of debt can be interpreted as having dependents, installments, services and thoughts on people,
if the loan sentence clearly uses something that must be returned in accordance with the agreement.
that's what can differentiate two sentences slightly.
if the loan sentence clearly uses something that must be returned in accordance with the agreement.
that's what can differentiate two sentences slightly.
I consider loan as debt still, because it is still something to pay back. For me,as long as a borrowed money should pay back it is a debt. Though a loan is something you borrowed from your own savings but it is still need to be reflenished.
I can say that loans are part of debts. Loans are not given for free since they will be payed back in a speculated time and debts are also seen to be settled with immediate effect.
For me both debts and loans are the same because we are ibligated to pay them back, although loan has a time limit and a debt can be of any form being borrowed, but still they are needed to be settled and paid or returned as promised.
Basically, there are similarities between Debt and Loan. Both are liabilities that need to be paid off. Loan represents an amount borrowed by an individual to meet his/her requirements, where as Debt represents an accumulative amount a person can be borrowing from a lender. It could be confusing to spot the difference between the two terms, cause of this similarity, it is however important to classify Loan as a form of debt for the sake of clarity.
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?
Don't get it mixed up, loan is a form of debt.. debt is anything that falls on the negative side of your finances, and loan is of them. You got a house on mortgage, it is debt. You damaged someone's property or you are fined an amount, all these and many more of such are debt. Loan is strictly a form of debt, that comes with an agreement between the Loaner and the debtor. Debt can be incurred any how, but loan comes is born out of consesus between the two parties. Although there are similarities.
I see loans to be a portion of debt incured because I understand debt to be an accumulated money you need to make due payment when the time is due.
I see it correct that loan is a part of your debt. Debt is the accumulation of your loans, be it salary loan, housing or car loans they are part of your debt which needs to be paid in an allotted time frame.
So, watching all the comments above, should I take it as loans are debts itself and the only difference here is that - both have their own types (e.g.; secured, unsecured, collateralized, non-collateralized) and limitations (time duration, contract specifics) to be met and as well, the terms may be different but meaning will remain same in every genre they've been spoken, am I correct here?
Loans are debts because they are given with or without interest, and are expected to be redeemed without a specific period of time. Some loan are formal thus requires signing of documents, while some are informal thus no documentation. Either way, loans are debts because it is base on either verbal or written agreement and require adherence and return policy
For me Loans are already debts, you owe the money already once you get a loan.
At first before having the loan you will be informed or signed a paper with some interest to pay.
Therefore, for me it is already a debt. BUT, we don't need to be scared if the loan amount will be funded to a good business or project.
This will cover the future you will have. just make sure to do it at your best with care.
At first before having the loan you will be informed or signed a paper with some interest to pay.
Therefore, for me it is already a debt. BUT, we don't need to be scared if the loan amount will be funded to a good business or project.
This will cover the future you will have. just make sure to do it at your best with care.
I don't want to explain what is the exact meaning of loan and debts but loan is also part of debt or one of its kind since we need to repay those loans too.But maybe we call that as loan when we are borrowing money from a bank where as when we borrow it from a person it can be debit!
I can say that loans are part of debts. Loans are not given for free since they will be payed back in a speculated time and debts are also seen to be settled with immediate effect.
I think loans are based on the people who can afford to pay back the money they borrowed, whereas debts are based on the people who cannot afford to pay back what they borrowed. We call them people who are in debts. Added to that, debt can be used as an adjective. For example; I am indebted to you. It means when someone does you a favor, you will feel that you will pay back the favor in the future. Both words do not have a big difference.
Credit and debt can in principle be considered synonymous.One difference is that for the loan you have to pay more interest and for the debt is not.(If, of course, no written contract was signed by a notary).But as a rule, no one makes such contracts with debt
It seems that everyone has its own opinion on what they think both loans and debt are, which is great because we shouldn't use a precompiled term for granted just because it's in a dictionairy.
In the end, the fundamentals are exactly the same. You have to pay back that what has been given (or whatever other term you want to replace given with) to you. It doesn't matter who the entity is you have to pay back, debt is debt regardless of its shape or form.
On another note, there are also student loans in my country. In this case you are still exposed to debt initially, but you will no longer have to pay it once you graduated. If you don't manage to graduate, you will have to pay back every single penny because it simply isn't your money to begin with.
In the end, the fundamentals are exactly the same. You have to pay back that what has been given (or whatever other term you want to replace given with) to you. It doesn't matter who the entity is you have to pay back, debt is debt regardless of its shape or form.
On another note, there are also student loans in my country. In this case you are still exposed to debt initially, but you will no longer have to pay it once you graduated. If you don't manage to graduate, you will have to pay back every single penny because it simply isn't your money to begin with.
Normally from my own understanding, whoever is taking a loan is indebted to the person or organization giving it which makes them to both go hand in hand.
At least from dictionary definition; loan is MONEY GIVEN TO someone for a period of time with a paid back promise.
Debt however is AN AMOUNT OF MONEY THAT YOU OWE someone, bank or company.
I guess that explains it all.
At least from dictionary definition; loan is MONEY GIVEN TO someone for a period of time with a paid back promise.
Debt however is AN AMOUNT OF MONEY THAT YOU OWE someone, bank or company.
I guess that explains it all.
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?
Instead of explaining anything in words, I would strongly recommend you to watch this episode and you will get the conceptual clarity on the whole system of debt.
* The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Episode 4.
Further, I am expecting a healthy discussion on this topic as it is something that is going to affect the entire 21st century on a global level.
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