What Is Debt Ridden?

Whether it is a country, company, state, or person, there are a number of present-day examples of entities being debt-ridden. In short, debt-ridden is classified as anything or anyone that has borrowed a significant amount of money that is unable to be paid back. Combinations of spending more than can be made and bad investments can quickly lead to an enormous amount of debt.

Personal Debt

Macmillan Dictionary defines debt-ridden as, in serious financial trouble as a result of owing very large amounts of money. For many people, one of the main reasons for becoming debt-ridden is credit cards. Before the U.S. National Debt crisis came to light, many households were thousands of dollars in credit card debt, and often relied upon credit to pay bills or other credit cards. With card interest rates often high, it is easy to spend more than is made, which makes it hard to pay the debt back in the end.

Debt-Ridden Countries

The United States is a perfect example of a debt-ridden country. With a current debt amount of $13 trillion and growing, the United States' debt is due to a number of reasons. Spending more than is made is one of them. For instance, in 2009, government receipts were $1.51 trillion while government expenditures had reached $3.5 trillion. A combination of wars in the Middle East, inflation and a real estate market where a large amount of credit was made available to people has led to a situation where the United States has quickly become debt-ridden.

Greece

Greece is another example of a debt-ridden country, with it being $413.6 billion in debt. A number of factors led to this debt, such as unrestrained spending and cheap lending practices. In recent years, Greece failed to reform its financial structure, leading to tax evasion by many of the country's well-off citizens. This left it in a situation where it was not gaining adequate tax revenue to support the economy. As a result, Greece is now considered a black hole by financial investors.

Zimbabwe

Last on the list of the many countries in financial strain is Zimbabwe, which is currently $5.7 billion in debt. One of the major problems within Zimbabwe was that it had a low per-capita income, meaning the income per person in a population was low. This is due in large part because the country is stricken with poverty in many areas. Therefore, this left the country with little to no way to clear the debts that it acquired. When coupled with a corrupt government, the result is yet another debt-ridden country.

Paying it Back

People who have acquired mass amounts of debt often must consult debt-consolidation firms, which in some cases may help lower the personal amount of debt. Bankruptcy is also an option for many. For countries, increased financial reform in the areas in taxation, and slashed spending are designed to help dig the country out of debt. For example, the United States has utilized stimulus packages that are designed to create jobs for its citizens and stimulate economic growth.