Debt expressions describe concepts related to borrowing, lending, and managing financial obligations. Here are 20 essential expressions:

Debt Expressions

1. In the Hole
   Meaning: In debt or having losses.
   Example: They’re deep in the hole after overspending.
2. Debt Trap
   Meaning: Situation of being unable to repay debt.
   Example: High-interest loans can create a debt trap.
3. Pay Off
   Meaning: Repay a debt fully.
   Example: He finally paid off his student loans.
4. Write Down
   Meaning: Reduce the value of an asset.
   Example: The company wrote down its inventory.
5. Creditworthy
   Meaning: Having a good credit rating.
   Example: Banks consider them highly creditworthy.
6. Debt Consolidation
   Meaning: Combining multiple debts into one.
   Example: She opted for debt consolidation to simplify payments.
7. Default on a Loan
   Meaning: Fail to repay a loan.
   Example: They defaulted on their mortgage loan.
8. Credit Line
   Meaning: Pre-approved borrowing limit.
   Example: The bank offered him a credit line.
9. Overdraft
   Meaning: Withdraw more than the account balance.
   Example: He was charged fees for an overdraft.
10. Credit Crunch
    Meaning: Sudden reduction in loan availability.
    Example: The credit crunch left businesses struggling.
11. Credit Rating
    Meaning: Assessment of a borrower’s creditworthiness.
    Example: Maintaining a good credit rating is important.
12. Max Out
    Meaning: Reach the credit limit.
    Example: He maxed out his credit cards.
13. Debt Servicing
    Meaning: Paying interest and principal on loans.
    Example: Debt servicing eats up a big chunk.
14. Loan Shark
    Meaning: Illegal lender charging extremely high interest.
    Example: He fell victim to a loan shark.
15. Principal Amount
    Meaning: Original sum of money borrowed.
    Example: She repaid the principal amount first.
16. Bad Debt
    Meaning: Unrecoverable debt.
    Example: The accountant wrote off the bad debt.
17. Balloon Payment
    Meaning: Large final payment on a loan.
    Example: The balloon payment is due next year.
18. Debt Relief
    Meaning: Reduction or cancellation of debt.
    Example: The organization provides debt relief to struggling families.
19. Underwater Loan
    Meaning: Loan amount exceeds the asset value.
    Example: Many homeowners are stuck with underwater loans.
20. Debt Restructuring
    Meaning: Modifying terms to ease debt repayment.
    Example: The company underwent debt restructuring last year.