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Definition of 'Debtor'

A debtor is a person or company that owes money to another person or company. The person or company that is owed money is called the creditor. Debt is a legal obligation to pay money or other valuables.

There are many different types of debts, including:

* Personal loans
* Credit card debt
* Mortgages
* Student loans
* Business loans

Debt can be a useful tool for financing purchases or investments, but it can also be a burden if it is not managed properly. When you borrow money, you agree to pay back the principal amount plus interest. The interest rate is the cost of borrowing money, and it is expressed as a percentage of the principal amount.

The amount of interest you pay will depend on the type of debt, the interest rate, and the term of the loan. The term of the loan is the length of time you have to repay the debt.

It is important to understand the terms of your loan before you sign it. Make sure you know how much you will owe, when you will have to make payments, and what the interest rate is.

If you are struggling to make your debt payments, there are many resources available to help you. You can contact your creditor to see if they can work out a payment plan with you. You can also contact a credit counseling agency for help.

Debt can be a difficult burden, but it is important to remember that you are not alone. There are many resources available to help you manage your debt and get back on your feet.

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