Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
One way to manage your debt is my implementing a Debt Management Plan. Either on your own, or by meeting with a financial counselor, you can create a payment plan that is the most efficient for your debt and your budget.
A loan is a form of debt. Money is exchanged between two parties: the lender and the borrower. The Lender will advance a sum of money to the borrower, in return the borrower agrees to a certain set of terms (financial charges, interest, repayment dates, etc.). The terms of the loan is agreed on by both parties before the money is moved, the process of agreement will vary depending on who the lender is.
Investopedia provides an explanation for different types of loans such as: Personal Loans, Credit Cards, Home-Equity Loans, Home-Equity Lines of Credit, and Small Business Loans, which you can click on Understanding Different Types of Loans to get more information.
Other different types of loans you can choose from:
