Debt

Debt is when you borrow money from someone else and agree to pay them back over a certain period of time, usually with interest. Think of it like borrowing money from a friend: you might borrow $100 from them, and they would want you to pay them back $105 after a certain period of time. The extra $5 you are paying back is called "interest". When you get a loan from a bank, you are also borrowing money and agreeing to pay them back over a certain period of time, plus interest.