debt cycle
Recurring financial burden
A debt cycle is a pattern where borrowing leads to conditions that require more borrowing.
Individuals may take loans to cover existing debts, paying interest on interest.
Economies experience debt cycles when credit expansion fuels growth, then contraction triggers defaults and recession: The country entered a debt cycle it couldn't escape without restructuring.
The term often implies a trap—each attempt to service debt deepens the underlying burden.
- boomLoud deep sound
- easy moneyProfit gained effortlessly
- bustFailure or sculpture
- recessionProlonged economic decline
- expansionIncrease in scope
boom and bust · leverage · credit · credit crunch · default · bubble · crash · borrowing · repayment · interest · lending · downturn · recovery · inflation · deflation · deleveraging · balance sheet · austerity
- economyGDP, money, inflation, inflation rate, GNP
- payday loanspayday loan, payday loans, cash advance, rollover, fee
- predatory lendingpayday loans, title loans, loan sharks, loan sharking, usury
- vicious cyclesdownward spiral, death spiral, shame spiral, feedback loop, inflation spiral
- financial biasredlining, credit denial, loan denial, fair lending, interest rates
- social trendsincome inequality, feminism, social mobility, environmentalism, wealth gap
debt cycledebt freedom
State of owing nothing
financial independence · wealth accumulation · financial security · wealth building · financial freedom
debt cyclevirtuous cycle
Self-perpetuating beneficial pattern
compound growth · generational wealth · upward mobility · wealth creation
debt, debts, debtor, debtors, indebted, indebtedness, cycle, cycles, cycled