By definition, debt is a deferred payment or series of payments that are given to a creditor by a debtor, distinguishing it from immediate purchases. Debt also carries interest, which varies by lender and type of debt. Most Americans are familiar with the process since 80% of Americans have debt to pay. Mortgages are the most common debt that Americans tend to carry, followed by balances on credit cards, car payments, and student loans. This holds true for companies as well as individuals. Businesses are also at risk of defaulting on a loan. Sometimes it gets to the point where a company or person is unable to consistently pay off all their debt on time. This is when debt restructuring comes into play.