Definition of debt trap in US English:

debt trap


  • 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’
    • ‘The global debt trap is not so easily eluded.’
    • ‘We need to take the required measures to prevent us sliding into the debt trap.’
    • ‘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.’
    • ‘She admitted borrowing money to buy a car but didn't want others falling into the same debt trap.’
    • ‘It should mostly be in the form of grants, not loans, to avoid future debt traps.’
    • ‘"Failure to provide a legal frame for managing loans would place the country in a debt trap," he said.’
    • ‘He soon began feeling that he had landed in a debt trap.’
    • ‘The debt trap often springs with us only feeling the pain at a later stage when getting out has become almost impossible.’
    • ‘Through such lending practices, elite farmers built up their wealth while poor farmers found themselves ensnared in a chronic debt trap.’
    • ‘Weddings also land middle class and poor families in the debt trap, even without paying a dowry to the groom.’
    • ‘I see people getting themselves into the debt trap, borrowing up to the hilt.’
    • ‘He warned that vulnerable consumers were being lured into a debt trap without understanding the full implications.’
    • ‘Small farmers are entangled in the debt trap.’
    • ‘The debt trap is far more significant than many in the north understand.’
    • ‘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.’
    • ‘In the Third World, foreign debts equal to 60% or 80% of GDP have been known to trigger the debt trap.’
    • ‘One unwanted result of such enforced action would inevitably be a debt trap.’
    • ‘But several of them are sliding back into a debt trap due to weak exports or renewed borrowing.’
    • ‘The best way out of the debt trap is to seek advice early, she said.’
    • ‘Writing off loans or giving soft loans won't bring the farmers out of the debt trap.’