Vælg

Võlg is the Estonian term for debt, referring to money owed by one party to another or an obligation to perform a service or payment. It arises when a borrower receives funds, goods, or credit with a commitment to repay under agreed terms.

Debt can be classified by source and security. Common categories include consumer debt (personal loans, mortgages, credit card debt), business debt (corporate loans, bonds), and sovereign debt (government borrowings). Debts may be secured by collateral or unsecured.

The core mechanics involve principal, interest, and repayment schedule. The borrower repays over time, often with interest that compensates the lender for risk and opportunity cost. If payments are missed, the loan may become in default and lenders may seek remedies, including collateral seizure in secured loans.

Legal and economic frameworks govern võlg. Civil-law systems establish contracts, remedies for breach, and procedures for insolvency or debt relief. On a larger scale, debt levels influence consumer finances and national economies, while policies aim to balance access to credit with consumer protection and financial stability.

In Estonian usage, võlg also appears in non-financial contexts to denote obligations owed to others, such as moral or contractual duties not tied to money.