What is another word for debt limit?
3 synonyms found
[ dˈɛt lˈɪmɪt], [ dˈɛt lˈɪmɪt], [ d_ˈɛ_t l_ˈɪ_m_ɪ_t]
The term "debt limit" refers to the maximum amount of money that a government or entity can borrow. Synonyms for debt limit include borrowing cap, debt ceiling, borrowing limit, fiscal ceiling, and credit cap. These terms are often used interchangeably to describe the same economic concept. The debt limit plays a critical role in managing a country's finances and ensuring that it does not overspend. When the debt limit is reached, the government must either cut spending, increase revenue, or raise the limit. Failure to address the debt limit can lead to a default on debt obligations, which can have serious economic consequences.