title: Terminal debt
text: # Terminal debt
  
  Terminal debt is the point at which the payments on the interest of a debt surpass the revenues of the debtor (i.e. the debt becomes fiscally unstable). In even simpler terms, terminal debt is the point at which debt payments become more than the debtor can pay back, resulting in additional penalties on top of the already large debt, causing a runaway effect, usually ending in Bankruptcy of the debtor.
  
  