Debtors And Creditors, What Are They?
A debtor is an individual or company that owes debt to another individual or company (the creditor), as a result of borrowing or issuing of credit.
A creditor is a party (e.g. person, organization, company, or
government) that claims that a second party owes the first party some property
or service. The first party, in general, has provided some property or service
to the second party under the assumption (usually enforced by contract) that the
second party will return an equivalent property or service. The first party is
frequently called a lender, and the second party is frequently called a debtor
or borrower.
In other words, your creditors are people to whom you owe money.
The term creditor is frequently used in the financial world, especially in
reference to short term loans, long term bonds, and mortgages.
The term creditor derives from the notion of
credit.
In modern America, credit refers to a rating which indicates the ability of a
borrower and likelihood to pay back his loan. In earlier times, credit also
referred to reputation or trustworthiness.
Source: Wikipedia
