In the financial context, the opposite of credit is debit.
- Credit refers to an accounting entry that increases an asset or expense account and decreases a liability or equity account. It signifies receiving money or something of value.
- Debit refers to an accounting entry that decreases an asset or expense account and increases a liability or equity account. It signifies paying money or something of value.
Here’s an analogy: Imagine your bank account as a scale. Credits add weight to one side (assets), while debits remove weight from that side. They work in opposite ways to maintain balance.