Abhishek Deshmukh
Campus Ambassador at E-Cell IIT Madras
3 years ago

*Liability*
-Word of the Day-

In finance, liability refers to money owed.

Say you took a loan. Then, you are liable to pay back the amount and the interest on it in a timely manner.

Your list of liabilities can include things like home loans, car loans, credit card bills, other EMIs, etc.

Unpaid bills are also a part of your liabilities.