CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is a debtor?

Debtor definition

A debtor is someone who owes money. For example, if you borrow £5,000 from a bank, you’re the debtor and the bank is the creditor. A debtor can also be a company or even a country.

Where have you heard about debtors?

A typical everyday scenario in which you're a debtor is when you buy something using a credit card as you're technically borrowing money to pay for goods or services. You're also a debtor if you have a car loan or mortgage.

What you need to know about debtors.

Because debt is borrowed funds, it’s normal to pay interest on the debt. If you fail to make scheduled payments on your loan, you will default on your debt. If a loan was secured with collateral such as your home, the lender can take and sell the property to recoup its losses. If the loan was unsecured, the lender can take legal action. Either way, you'll have a black mark on your credit file.

When you buy bonds, the seller of the bonds is the debtor and you're the creditor as you're lending money to the issuer.

Find out more about debtors.

Read our definitions of credit card and mortgage to learn more about different types of debt.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading