Glossary
Damage
Any reduction in property, loss of profit, or non-material consequences (such as pain and suffering) resulting from a specific event, typically related to unlawful conduct, omission, or an incident, which is subject to compensation under the law. Damage encompasses both material and non-material harm.
Dealer
In securities trading, an individual or legal entity that buys and sells securities on its own behalf and account with the aim of making a profit from the price difference (buy and sell prices). The activity of financial instruments dealers in Bulgaria is regulated by the Markets in Financial Instruments Act and ordinances of the Financial Supervision Commission.
Debit Card
A payment instrument in the form of a plastic card with a magnetic stripe and/or chip containing information about the linked payment account. It allows withdrawing cash from ATMs, paying in stores and online, with amounts debited directly from the bank account or another prepaid account of the cardholder. The card can be added to a smartphone or smartwatch digital wallet, as well as other online payment platforms.
Debit Card - glossary for children
A card linked to a bank account that allows only the money in the account to be used for taking out cash from a cash machine or for paying in shops and online. Sometimes fees are added for issuing the card, withdrawing cash, or paying in another currency.
Debt
An obligation of one party (the debtor) to repay another party (the creditor) a specified amount of money under agreed conditions such as term, interest, repayment method, etc.
Debtor
An individual or legal entity that, under law or contract, is obligated to fulfil a financial or property-related duty to a creditor, including repaying a loan or credit, paying interest, or satisfying other claims arising from contractual or legal grounds. The debtor is responsible for fulfilling these obligations within the agreed timeframe and according to the terms set forth in the applicable legislation and contract.
Debt Servicing
The regular fulfilment of obligations on a loan or other type of debt, including the payment of interest and repayment of principal according to agreed terms. The term encompasses the entire process of managing debt payments to avoid default or delinquency.
Debt Spiral
An economic situation in which an individual, household, business, or even a country accumulates new debt to repay old obligations, leading to an increasing amount of debt and greater financial instability. Loans are used to service previous debts (principal and/or interest), with interest costs rising over time and repayment capacity decreasing. This increases credit risk, worsens access to financing, and may eventually lead to insolvency (bankruptcy).
Debt-to-Income Ratio (DTI)
A term denoting the debt-to-income ratio (DTI), which indicates the percentage of a consumer's monthly gross income allocated to debt repayment. The DTI ratio is used by banks and financial institutions to assess the creditworthiness of individuals and households when granting loans. It reflects the portion of a person’s monthly income devoted to servicing existing debt, including principal and interest on loans, lease payments, and other financial obligations. A higher DTI indicates greater risk for the lender, while a lower DTI reflects stronger financial stability of the borrower.
Debt-to-Income Ratio (DTI)
A financial indicator showing what portion of a person’s income is used to repay loan obligations. Banks always calculate it when assessing a loan application.
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