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A liability is something you owe to someone else, like a debt.
In Depth
In personal finance, a liability is essentially money or services you are obligated to pay in the future. This includes things like loans, credit card balances, and even bills for services you've already received but haven't paid yet. Understanding your liabilities is crucial for managing your overall financial health, as they reduce your net worth.
Example
My car loan and credit card balance are my biggest liabilities each month.