Adjective describing a situation or entity that relies significantly on borrowing to finance operations, activities, or consumption. A debt-dependent individual or organization often faces financial instability and may struggle to meet obligations without further borrowing. This term is commonly used in economic contexts to analyze the impacts of debt on overall financial health, sustainability, and decision-making, especially in contrast to self-sufficient or financially independent entities.
Debt-dependent meaning with examples
- The country's economy has become increasingly debt-dependent, with the government relying on loans to fund critical infrastructure projects. As global markets shift, economists warn that this reliance on external financing could lead to severe repercussions if debt levels become unsustainable.
- Many students are entering the workforce with a debt-dependent mindset, shaped by educational loans that linger well into their careers. This burdensome financial reality can stifle their ability to save and invest, impacting their long-term financial stability.
- The once-thriving corporation became debt-dependent after a series of poor financial decisions led to mounting liabilities. Now, management is forced to reevaluate its strategy to reduce dependency on loans and regain its financial footing.
- In developing regions, local governments often become debt-dependent to address urgent public needs. This dependency raises questions about future repayment capacities and the sustainability of public services, putting many projects at risk.
- Households that live paycheck to paycheck can become debt-dependent, using credit cards to cover basic necessities. This cycle of borrowing may offer temporary relief but ultimately leads to greater financial stress and instability.