Debt

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If you are in debt, it means you owe money. Debt can sometimes be useful: few people can afford to buy a house without borrowing money (see Mortgage) and going into debt. Companies need to borrow money to maintain and expand their businesses. But some debt can be bad, such as too much credit card debt, which is expensive debt due to the high interest rate typically charged by the credit card companies. And if you get so deep into debt that you can't pay back what you owe, you might have to declare bankruptcy. Anyone who owes money could be called a debtor, although this term is sometimes only used to describe someone who is having difficulty paying back their debts. See also Credit (Debt).