A situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal: a new personal bankruptcy law aims to help individuals free themselves from the debt trap countries like Greece and Portugal are already caught in a debt trap
More example sentences
- Some of these loans though offered on soft terms tend to tie countries to long terms of repayments thus locking future generations to debt traps.
- As well as helping people to escape the debt trap, extra effort needs to be put into helping them to avoid living beyond their means in the first place.
- The debt trap often springs with us only feeling the pain at a later stage when getting out has become almost impossible.
Definition of debt trap in:
- The British & World English dictionary