The Debt Crisis

A debt crisis occurs when a country, company, or individual borrows so much money that it struggles to repay or meet its debt obligations. This can happen if economic conditions worsen, revenues decline, or if borrowed funds are not managed well. When a debt crisis happens, it can lead to default, inflation, and economic instability, making it harder to pay debts, borrow more, or grow the economy. Governments often seek assistance from international organizations or restructure debts to regain stability and restore confidence among creditors and citizens.