What is defined as an obligation of repayment owed by one party to another?

The correct answer, which defines an obligation of repayment owed by one party to another, is "Debt." In personal finance, debt specifically refers to the amount of money borrowed by one party from another that must be repaid, typically with interest. This concept encompasses various forms of borrowing, such as loans, credit card balances, and mortgages. Each of these represents a legal obligation requiring the borrower to repay the lender over a specified period.

By understanding debt in this way, individuals can better navigate their financial obligations and make informed decisions about borrowing and repayment strategies. This understanding is essential for managing personal finances effectively and ensuring that one does not take on more debt than they can handle, which can lead to financial difficulties. The other options, while related to personal finance, do not accurately encapsulate the definition of an obligation owed to another party. For instance, a loan refers specifically to the amount borrowed, credit is a measure of one's ability to borrow money, and an asset is something of value owned by an individual.