Debt costs refer to the interest and fees associated with borrowing money. When an individual or organization takes out a loan, they are charged interest on the amount they borrowed as well as any additional fees for services rendered during the transaction. These debt costs can vary depending on several factors such as the lender's policies, market rates, and the borrower's creditworthiness. Debt costs are an important consideration when evaluating the financial implications of taking on debt and should be carefully considered before entering into any borrowing arrangement.