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.
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?
Generally, there is no difference between the two and even these two terms can be used interchangeably. Both loans and debts are liabilities that need to be paid off. From a business or accounting point of view I can state some difference. When a company lends money from banks or private lenders, it is considered as loans but if money is raised through issuance of shares and bonds, it is called debt of the company.
In General, any case where you have someone at least some money makes sense to call the Debt! The only difference is that there are several types of debt and everything else is just their names.
1 Loan money from a friend, relative-a loan of a small amount of money for an indefinite period with the obligation to return "as I can".
2. Loan money from your Bank for a short period (a month, two) without interest using credit cards. Return within a month or two months is mandatory.
3. The loan of a large amount of money (mortgage, car loan, business) - is also a debt but paid gradually and for the use of this debt has to pay additional % to the Bank.
Well, in particular in Your case, I can only say that the word Credit - is that the loan without overdue payments to the Bank where you regularly pay and use the service provided to you.
And Debt-this in most cases overdue payment which you had to pay but could not in view of a number of circumstances whether it is debt for a utility fee , loan or mortgage.
1 Loan money from a friend, relative-a loan of a small amount of money for an indefinite period with the obligation to return "as I can".
2. Loan money from your Bank for a short period (a month, two) without interest using credit cards. Return within a month or two months is mandatory.
3. The loan of a large amount of money (mortgage, car loan, business) - is also a debt but paid gradually and for the use of this debt has to pay additional % to the Bank.
I'm unable to find a precise classification and/or similarity between the two words - debt and loan.
Well, in particular in Your case, I can only say that the word Credit - is that the loan without overdue payments to the Bank where you regularly pay and use the service provided to you.
And Debt-this in most cases overdue payment which you had to pay but could not in view of a number of circumstances whether it is debt for a utility fee , loan or mortgage.
well it depends on the magnitude and time frsme of the loan, there is what we call bad debt in account, this is a loan that is long overdue for repayment, but due to unforseen circumstances, the loan can no longer be retrieved hence becomes a bad debt.
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 a form of debt. A debt is anything you owe to someone else. It can be used financially or in a social context, such as 'I am in your debt', which implies you owe the person a favor.
A loan is specifically the lending of money, and the borrower's obligation to repay the loan is therefore a debt.
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?
Suppose one person needs $10k from a Bank and the fund is granted to the person by the bank. This will be the loan given to the person.
Second term used by you is Debt; it is the total amount the loan granted + interest applied there on.
So debt means Loan granted + amount of interest.
Also when the repayment starts then Loan granted + amount of interest - (minus) the installments repaid by the person (availing loan from the bank) to the Bank (the financier).
Loan and dept are almost means the same thing. In my own definition loan is sometimes associated with paying of interest either on monthly basis or on yearly basis.
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?
They are both liabilities and payable. I think ofcourse loans are also a debt. Do not confuse yourself too much, so many problems needed to be solved. 
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?
They are both liabilities and payable. I think ofcourse loans are also a debt. Do not confuse yourself too much, so many problems needed to be solved. 
What about the interest part? As loan consists of interest rates and changes according to the agreement if repaid late or whatsoever terms and conditions, does debt also accrue such interest rates? Most importantly, do debts have any interests levied at all? IMO, debts does not have interest rates added to it as it is given solely for the purpose of helping* someone by availing them the form of help they are in need of (e.g.; money for those who need cash, grocery for those who need food and so on), whereas loan is something that accrues interest rates from the very beginning it is lent (it differs on a case-by-case basis as to what I've observed because people also give 0 interest loans). What I don't understand here is, what's the lender's benefit by giving money for "free" or "interest-free"?
For me I think the difference between debt and loan that loans are backed up with agreement papers and bind with legal responsibilities.
While debt can be unofficial like peer to peer agreement.
While debt can be unofficial like peer to peer agreement.
Debt is the impact of a loan, if someone borrows an item or money then he is obliged to return it in the same form when he first borrowed or even in the bank system they usually outweigh the first amount of money that he did. The obligation to pay can be referred to as debt, if someone is unable to fulfill and pay off debt, there is a consequence that the day faced by the borrower. Many things must be considered when borrowing money or goods, one of which is someone must have a clear goal when intending to borrow, this will determine whether you can pay or not.
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 that debt is just a term used to describe the overall net level of one's finances, while loans are describing individual deals or contracts that are being made which result debt/credit.
A loan obviously constitutes as debt to the party who is actively taking out the loan agreement, and I don't really think that there is going to be that much of a technical difference in some scenarios where you could use both terms interchangeably. Every single debt is technically incurred through one form of a loan or another, what varies is just the terms and length.
Don't think that you can say that loans are a part of debt though. Loans are a form of debt, but not a part of it.
Should we say that loans are borrowed things from a financial institutions which is official because of documents ,or a simple loan from a certain people or group of people engaging in loans, and this are payable things ,so as to debt is also a borrowed thing that needs to be pay ,so it has a similar concept which is to pay later,then loans are part of debts.
For me debts and loans are similar things. in both the system you are paying interest for getting the cash or money in any way. so i think debts and loan are smiliar.
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?
debt happens when you owe something and promise to return in a particular time which we call loan,technically loan is also a debt because when you ask for a loan something give it to you and it become a debt.
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?
All thumbs are fingers however not all fingers are thumbs. Similar story, all loans are debts however not all debts are loans. Loan is when you take out money from someone or a bank and repay in installments however you can have debt like buying something and paying it in installments which means you have debt but no one gave you a loan.Hence, the two words are different from each other in meaning because if you have a loan that is debt but if you get something but pay later that is also called debt. For example big companies usually get something from a smaller company and give a 45 day check which is a debt on their books but not a loan.
Definitely true ,loans are part of debts ,because debts in any part of business especially finances are oblgation to be paid, and the term loans in any kind are required for payments for the use of money, in any forms of loans .
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 that word is similiar, because the mean of that word is we get money from others for our purpose. And the similiar of both word is we should back the money we get from other people and sometimes with interest
Debt with a loan makes no difference, all must be paid, only the management system is different, I think so bro
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
And since there's no contract people taking the advantage to borrow a lot of money, even they knew that they can't pay it all and believing no one can't be in jail for borrowing money but unless if a person already owe huge money like millions, it's consider as estafa and he can be jailed.
If there's money involve, a thing can be consider debt as you have an obligation to pay it no matter what. It's just good to hear that you loan money from bank but technically you owe them and that count to debt.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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