What term is used to describe the total amount of money owed by an individual or organization?

The term that describes the total amount of money owed by an individual or organization is 'debt.' Debt represents the financial obligations that must be repaid to creditors, typically involving loans, mortgages, or credit card balances. When a person or organization borrows money, they create a liability, which is defined as debt. Understanding debt is crucial as it indicates the financial health of an individual or entity and affects credit ratings and borrowing capacity.

In contrast, credit refers to the ability to borrow money or access goods or services with the understanding that payment will be made later, while equity represents ownership in an asset after subtracting debts associated with that asset. An asset is anything of value owned by an individual or organization that can generate future economic benefits. These other terms differ significantly from debt, which specifically refers to liabilities owed.