armadilha de dívida
1. a situation in which a person or country borrows money and finds it difficult or impossible to repay, often due to accumulating interest and additional fees
The high interest rates on credit cards can easily lead to a debt trap for consumers with low incomes.
As altas taxas de juros nos cartões de crédito podem facilmente levar consumidores de baixa renda a uma armadilha de dívida.
2. a cycle of borrowing where the cost of servicing debt becomes unsustainable
Many developing nations have fallen into a debt trap due to predatory lending practices.
Muitas nações em desenvolvimento caíram em uma armadilha de dívida devido a práticas de empréstimos predatórias.
The term 'debt trap' became increasingly prevalent in both American and Brazilian discourse during and after the 2008 financial crisis and the subsequent expansion of predatory lending practices. In Brazil, the concept is particularly relevant in discussions about consumer credit, informal lending, and international debt obligations. In the USA, it commonly refers to student loan debt, medical debt, and credit card debt affecting millions of citizens.
NYC Slang
being underwater / drowning in debt
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