Social Debt Situation

Published by editor | Filed under Smart Debt

A debt situation is a social situation in which a person or a group of persons, after receiving something from somebody else has the obligation or the feeling to give back something having the same value.

If the notion of value equality is subjective, the debt feeling is also subjective. In the context of a formal engagement to reimburse or pay for a service, a loan, a good, the debt notion acquires a particular sense, in which the reimbursement obligation is imposed by a third part: the public force according to the law. In this case the debt is associated with finances.

Thus, a person’s debts, a company’s debts or a country or institution’s debts are sums of money which must be paid for reimbursing loans from a bank or for paying taxes.

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