Write a short note on indebtedness and debt bondage.

Indebtedness and Debt Bondage: A Cycle of Exploitation

Indebtedness and debt bondage are forms of modern slavery prevalent in many parts of the world, trapping individuals and communities in cycles of poverty, exploitation, and coercion. Indebtedness occurs when individuals or families borrow money or goods to meet basic needs or cover unforeseen expenses, often from exploitative lenders charging exorbitant interest rates. In situations of extreme vulnerability, borrowers may become ensnared in debt bondage, a form of forced labor where debts are exploited to coerce individuals into working under exploitative conditions to repay their debts. Debt bondage perpetuates a cycle of exploitation, as debts accumulate faster than they can be repaid, trapping individuals and their descendants in intergenerational servitude. Addressing indebtedness and debt bondage requires comprehensive measures to strengthen legal protections, regulate informal lending practices, empower vulnerable populations, and promote economic opportunities that break the cycle of exploitation and promote dignified livelihoods.