What term describes money that you owe?

The term that refers to money that you owe is "debt." Debt encompasses any financial obligation or amount of money that an individual or organization is required to repay to another party, which can include loans, credit balances, and any other liabilities. Understanding debt is crucial in personal finance, as it influences one's financial health and creditworthiness.

When an individual borrows money, they create a debt that must be repaid over time, usually with interest. This concept is fundamental in managing personal finances since excessive debt can lead to financial difficulties, while responsible management of debt can help build credit and establish a solid financial foundation.

Other terms like "loan" specifically refer to a type of debt that is borrowed with the promise to repay, "asset" signifies something of value owned, and "credit" relates to the ability to obtain goods or services before payment, based on the trust that payment will be made in the future, but none of these capture the broader notion of money owed as effectively as "debt."