schulden

Schulden (debts) are obligations to repay money or other value to a creditor. They arise when a borrower receives resources upfront with a commitment to repay in the future, usually with interest. Debts are recorded as liabilities on a balance sheet and can be held by individuals, households, firms, or governments.

Debt can be secured or unsecured. Secured debt is backed by collateral (for example a mortgage or auto loan), while unsecured debt relies on the borrower's creditworthiness (such as credit cards or personal loans). Debts can be short-term (maturing within a year) or long-term, and can be private (household or corporate) or public (government).

Causes of indebtedness include insufficient income, overspending, persistent deficits, economic shocks, or easy access to credit. The consequences of high indebtedness include higher interest costs, reduced credit scores, risk of default or bankruptcy, and potential macroeconomic effects such as slower growth or financial instability for lenders and borrowers.

Management strategies include budgeting, debt consolidation, refinancing, negotiating terms, or repayment plans. In many jurisdictions, insolvency or bankruptcy regimes provide mechanisms to restructure or discharge debts. Financial education and prudent lending practices aim to prevent unsustainable debt levels.

Key measures include debt-to-income ratio (DTI) for individuals and debt-to-GDP for governments. Other indicators include debt service ratios and maturity profiles. The legal framework—contract law, consumer protection, and insolvency statutes—varies by country and shapes how debts are created, serviced, and resolved.