debt traps

Inescapable borrowing cycles

Debt traps are lending arrangements designed or structured so that borrowers struggle to escape the debt.

The term often describes predatory loans with high interest rates that keep borrowers perpetually paying without reducing principal: Payday loans are classic debt traps.

In geopolitics, debt-trap diplomacy refers to loans extended to developing nations under terms that may force them to cede assets or strategic concessions when they can't repay: Critics accuse China of using debt traps to gain control of foreign ports.

Opposites
financial ethics/fairness

debt trapsfair lending

Nondiscriminatory loan provision

low-interest loans · fair credit · grant programs · microfinance · credit unions

financial outcome for borrower

debt trapsdebt freedom

State of owing nothing

financial freedom · debt relief · debt forgiveness · financial independence · solvency

Family

trap, debt, entrap, indebted, debit, debtor, trapper, indebtedness, debt trap

Familiarity
Top 100,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G