What term describes a person who owes money to a creditor or lender?

The term that describes a person who owes money to a creditor or lender is "debtor." In the context of finance and lending, a debtor is someone who has received funds or borrowed resources and is obligated to repay that amount, plus any interest, to the lender. This role is fundamental in various financial transactions, as it establishes a legal relationship between the lender, who provides the funds, and the debtor, who is responsible for repayment.

Understanding this term is crucial in the lending process, particularly in mortgage lending, where borrowers take on debt in the form of a mortgage loan. While "borrower" may seem similar and is often used interchangeably with "debtor," the primary distinction is that "debtor" encompasses all types of financial obligations, not just those resulting from a loan. This broader application includes any instance where an individual owes money, further solidifying "debtor" as the appropriate term in this context.