difference between firm debts and private debts
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Private debt
Private debt is the debt accumulated by individuals or private businesses. Private debt can take numerous forms; a personal loan, credit card, corporate bond or business loan for instance.
Private debt comes with numerous pitfalls and risks for the applicant. When a loan is provided by family or friends, missed repayments can cause tension and even result in the end ofrelationship. Debt incurred with a credit provider may result in high levels of interest, charges for missed payments or demands for security.
Public debt
Public debt, or national debt, is the sum of the financial obligations incurred by all government bodies of a county. This debt can be accumulated by the government directly or a government agency at any level.
Pubic debt can arise from a number of sources, for example government bonds create a debt owed by the government to a member of the public. Alternatively, Sovereign Debt is accumulated when the government of a county borrows money from the government of another.
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