Indebtedness Meaning and Definition
Indebtedness
Pronunciation
/ɪnˈdɛtɪdnɪs/
Part of Speech
Noun
Definition
The state of owing money or being under obligation to another person or organization.
Examples
- The company’s indebtedness to the bank led to financial difficulties.
- She struggled to manage her indebtedness after taking out multiple loans.
Synonyms
- Debt
- Obligation
- Liability
Antonyms
- Wealth
- Prosperity
Additional Information
Indebtedness can be a major financial burden, leading to stress and anxiety. It’s essential to manage debt effectively by creating a budget, prioritizing payments, and communicating with creditors.
There are various forms of indebtedness, including credit card debt, mortgages, personal loans, and student loans. Understanding the terms and conditions of each type of debt is crucial to managing it successfully.
Etymology
The word “indebtedness” originated from the Old French word “endetement,” meaning “to bind or obligate.”
Usage Notes
When referring to personal debt, use “indebtedness” to convey a sense of responsibility or obligation. In business contexts, use “indebtedness” to describe the financial liabilities of a company.
Cultural References
Indebtedness is a recurring theme in literature, such as in Charles Dickens’ “Oliver Twist,” where the protagonist struggles to overcome poverty and debt.
Idiomatic Expressions or Phrases
“Be in hock” means to be deeply in debt or financially obligated to someone.
Related Words or Phrases
- Debt consolidation
- Bankruptcy
- Credit score
Collocations
- financial indebtedness
- long-term indebtedness
- high-interest indebtedness
Frequency of Use
Indebtedness is a commonly used term in financial and economic contexts, particularly in discussions about personal finance, business debt, and economic policy.