Tech debt is a concept that describes the growing effort required to maintain a structural and functional integrity of a code in a dynamic product environment. Tech debt usually occurs naturally and in all organizations, even though it could also be caused by poorly written code, and the organizations need to invest additional effort to maintain or reduce the amount of such debt. An increasing amount of technical debt leads to slower development and higher likelihood of malfunctions.
It is also said to be comparable to monetary debt because if it is not repaid it makes it harder to implement changes later on.
There are 3 types of debt tech:
Tech debt can happen to any company, no matter the size. It is responsible for cash and non-cash costs likewise. Cash costs imply the cost of hiring additional staff to get the work done (e.g. to build new features) and non-cash costs refer to making improvements and adapting to the changes in the market.
Tech debt needs to be addressed in a timely manner, preferably early on in the project, otherwise it can lead to serious consequences for your business.