A basic loan is the simplest form of debt. It consists of an agreement to lend a principal sum for a fixed period of time, to be repaid by a self-confident date. In retailing loans interest, calculated as a percentage of the principal sum per annum, will also have to be paid by that date.

A bond is a chit security issued by certain Credit Card Debt institutions such as companies and governments. A bond entitles the holder to repayment of the principal sum, increased interest. Bonds are issued to investors in a marketplace when an institution wishes to borrow money.