Are loans - part of debts? - page 4.

dinoloverpete

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Quote from: Stedsm on September 10, 2018, 09:18:47 AM

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?

A loan is the act of lending someone money with an agreement for them to repay in the future. The loanee (receiver of the loan) is indebted to the loaner. AKA they owe them a debt. Therefore receiving a loan also means you have debt.

coly20032003

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As far as I think, loan is another type of debt. Because for loan, it is like you own the bank or other people some money, and you need to pay it back within a certain amount of time, that is similar to the definition of debt.

sheenshane

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Actually, it's hard to differentiate between these to words the debt and the loan whereas it is both liabilities that at the end we need to repay from where we borrowed. A loan is an amount that we lend or that we borrowed from individuals. While on the other hand, debt represents an accumulative amount a person can be borrowing from a lender or borrower and it is liable to pay the interest until you've got all paid the principal amount that you've borrowed. Indeed, all of these are related to each other that you need to repay at the end.

uozer

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PRiVCY

To me, Both Debts and loans are liabilities that must be redeemed. Debt is the major owing that must be refunded in most cases wholesomely at an agreed date. But Loans is the smaller aspect of Debt that might be paid back on installment basis based on the mutual agreement between the parties involved.

Okrah

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Quote from: Stedsm on September 10, 2018, 09:18:47 AM

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 think loans are type of debt. We are borrowing something because we need it. The term debt is broader than loan because you can borrow not only money, but also things or something someone had done in your favor or did help save you. Loan is basically a financial matter.

paulspider

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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.

Johnyz

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Loan is also consider as debt. Debt can be classified into two, bad and good debt. Bad debt is when you are doing this to buy something, and Good debt is when you are asking to make a Loan because you want to put up a business, I think that’s the only difference for this one. This is just my simple thought.

audaciousbeing

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Quote from: Stedsm on September 10, 2018, 09:18:47 AM

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?

Its kind of hard to differentiate the two because in accounting terms they are both liabilities on the part of the company and even to an individual its something that would need to pay back to the person who advanced it initially. But understanding that there is a difference between the two is why there are two different names. Simply state that a loan is one time liability while debt is an accumulation of loans. Take an example, if Mr A wants to needs money, he will go out to ask for a loan but if these loans are now something he cannot recover from that have been accumulated, we can say that Mr A is in debt. #my opinion.

Stedsm

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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?

Topic: Are loans - part of debts? - page 4. (Read 1325 times)