What is meant by debt-bondage?

Debt-bondage refers to a situation where an individual pledges their labor or services as a means to repay a debt, often in a manner that perpetuates the cycle of indebtedness with little to no hope of ever fully repaying that debt. This form of exploitation can lead to situations where the debtor is effectively trapped, with their working conditions and payments being manipulated or controlled by the creditor, preventing the debtor from achieving true financial freedom.

This concept is particularly relevant in discussions around modern slavery and human rights issues, where individuals may find themselves working under conditions that are exploitative and discriminatory. Unlike traditional loan arrangements that have a defined timeline and a clear path to repayment, debt-bondage lacks these attributes, leading to an indefinite period of servitude that can be highly detrimental to individuals' freedom and well-being.

Understanding the implications of debt-bondage is essential for recognizing the severity of the issue within the context of economic systems and worker rights.