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What is debt?

It’s money you owe.

Debt is when you borrow money from a lender. When you owe someone money, you are in debt with them.

How is it different to credit?

Credit is the amount of debt you are able to take on. If you have a high credit limit and low amount of debt, you are in good standing. Banks and lenders like this type of behavior.

Updated on July 3, 2019

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