There are many who feel that debt just have a negative side attached to it. But have you ever thought that when you need to buy a car a home or start up a business and you don't have enough money to do so then what becomes the best thing for you. Yes it is in the form of debt and you can easily repay in monthly installments without bothering to pay the debt amount in full or at one go.

The negative side for debt is, you can actually end-up drowned in too much debt. Interest rates always comes in picture whenever you incur any debt. As time passes, the interest usually becomes higher than the principal. You must be able to repay the debt faster than the interest.

Companies, nation's, institutions are also incurring debts along with the individuals. Debt is also denominated in a given monetary currency; Inflation or deflation rates are also one of the factors it is dependent on. Changes in the value of the currency may affect the size of the debt.

Economy of countries is also affected due to excessive debt accumulation. Historically, too much accumulation of debt has been blamed for economic instabilities. Stock Markets dropped because of excessive debt. Deflation then came into the picture. Consumption and investment were then lowered down, in effect, expectation for future returns lowered. Because the demand decreased, unemployment increased. Bankruptcies in huge numbers are a consequence of it; Deflation came in as there was decrease in demand.

Throughout the years people have been critical of debts but there are different stands on the same of different institutions. From the Marxist criticism, debt is viewed as a form of slavery. The subject or debtor is not legally owned by the creditor but he is bound to perform labor or work to repay the debt.

Usury effect may be reached if debt is not repaid immediately. It is defined as excessive rate of interest. There are also debts incurred by the state. Odious debts are those incurred by a regime for purposes not that of the people. Its considered as a debt of regime not state because of this.

Despite the different kinds of debt, before each debt is transacted, both the creditor and debtor must agree to the terms of payment. The terms of payment is usually known as the standards for deferred payment. The payment can be done in an installment basis, or a one-time-big-time payment based on the agreement