A severe financial situation where an entity such as a government, corporation, or individual accumulates debt exceeding their ability to repay, often triggering economic instability, austerity measures, or default.

An economic emergency marked by unsustainable debt levels relative to revenue or assets, frequently leading to bailouts, restructuring, or recession.

A term commonly used for sovereign debt crises, like the 2010s European debt crisis, where countries struggle with high borrowing costs and fiscal imbalances.