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
- In the Third World, foreign debts equal to 60% or 80% of GDP have been known to trigger the debt trap.
- "Failure to provide a legal frame for managing loans would place the country in a debt trap," he said.
- Writing off loans or giving soft loans won't bring the farmers out of the debt trap.
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