Debt is money borrowed by one party from another. Corporations and individuals use debt as a method for making large purchases that they could not afford under normal circumstances. A debt arrangement includes the condition that the borrowing party pay back the money at a later date, usually with interest.
The U.S. government issues debt in the form of securities to domestic and foreign investors, as well as corporations and other governments. U.S. debt-based securities issued include Treasury bills (T-bills), notes and bonds as well as U.S. savings bonds.