High-debt

High-debt describes a financial situation or entity burdened by a substantial amount of outstanding debt, relative to their income, assets, or overall financial capacity. This debt can be owed to various creditors, including banks, individuals, or institutions. A high-debt situation often presents significant financial challenges, potentially leading to difficulties in meeting repayment obligations, reduced financial flexibility, and increased vulnerability to economic downturns. The level of 'high' is relative and context-dependent.

High-debt meaning with examples

• The company's rapid expansion, financed primarily through high-debt financing, left it vulnerable when market conditions soured. Its inability to service the debt forced significant restructuring, including asset sales and workforce reductions. The high-debt burden severely limited its investment in innovation.
• Many families struggling with high-debt from student loans and medical bills find it challenging to save for retirement or even handle unexpected expenses. Their disposable income gets eaten up by debt servicing costs. The high debt load prevents them from fully participating in the economy.
• Greece's sovereign debt crisis stemmed from accumulated high-debt levels, unsustainable government spending, and a decline in economic output. The debt forced the government to seek international bailouts and implement austerity measures that impacted its citizens. The high debt almost led to collapse.
• Countries with high-debt to GDP ratios may face challenges attracting foreign investment and servicing their obligations. The resulting volatility and the impact of inflation may create economic and social unrest. The high debt will cause a decrease in spending and investment in new infrastructure.