Financial Terms Dictionary: ELI5 Version - Credit and Debt

Credit and Debt:

intertwined facets of finance, epitomize the complex dynamics of borrowing and lending, encompassing transactions in which a creditor extends financial resources to a debtor with the understanding of future repayment, usually with interest, over a predetermined timeframe. These fundamental components of the financial ecosystem underpin economic activity, foster investment, and enable individuals, businesses, and governments to access capital and manage liquidity.