Debt is a common aspect of life for many individuals and businesses. From student loans to mortgages, credit cards to business loans, debt is often necessary to achieve certain goals or meet certain needs. However, when mishandled or left unchecked, debt can quickly become a burden, leading one to feel as if they are drowning in
debt. Understanding debt and how it functions is the first step towards regaining control over one's financial situation.
In its simplest terms, debt is money owed by one party (the debtor) to another party (the creditor). It is typically incurred when the debtor borrows money from the creditor, with the agreement that the debtor will pay back the borrowed amount, often with additional interest, over a specified period. This concept applies to all forms of debt, from personal loans to
credit card debt, to larger scale debts like mortgages and business loans.
However, when one's debt exceeds their ability to pay, whether due to poor financial management, unexpected expenses, or loss of income, they may find themselves drowning in debt. This metaphorical phrase describes a situation where one's debt is so overwhelming that they feel as if they are being pulled under by the weight of it, unable to keep their head above water.