Indebtment
Indebtment is a state of owing money or being obligated to another. It signifies a financial liability or moral obligation arising from a loan, service, or agreement. It often entails a contractual agreement specifying repayment terms and consequences for default. indebtment can be viewed as a financial burden impacting financial freedom and decision-making. It can range from personal debts, like student loans or mortgages, to broader obligations of countries or organizations. It highlights a lack of financial independence until fulfilled.
Indebtment meaning with examples
- The crippling student loan repayments are a significant source of personal indebtment, forcing graduates to delay major life milestones. Paying off the indebtment felt liberating. The burden restricted financial choices and created a sense of anxiety. She felt constantly obligated to keep the debt from accruing interest, thus limiting her discretionary income.
- The company’s significant indebtment, due to risky investments, triggered a financial crisis and widespread layoffs. A plan to pay back the indebtment over 5 years was instituted by the board. It led to austerity measures and reduced spending on research and development, creating an imbalance in future innovation and growth, making them less competitive.
- The government’s increasing national indebtment posed a challenge to fiscal stability, raising concerns about future economic growth. Many of the countries in the region were in similar indebtment to international bodies. This indebtment limited resources available for public services and infrastructure. The need for debt reduction became a primary focus of economic policy.
- Following the charity’s fundraising campaign, the organization faced indebtment to several donors who had provided bridging loans. A repayment plan was implemented, based on pledges and fundraising goals. Managing this indebtment, ensured the continuity of its programs. Failing to address the indebtment, would damage their reputation and trust from their stakeholders.
