Lucius borrowed money and could not repay what he owed, so he borrowed money from Guavo to repay the old loan. Now, Lucius is working for Guavo to pay the new loan. In the meantime, Guavo provides shelter and food for Lucius and adds these expenses on to Lucius' debt. In truth, Lucius will never be able to work enough to pay off his growing debt to Guavo. This is an example of:

Question

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Lucius is trapped in a cycle of debt, where he cannot repay what he owes and is forced to borrow more money to pay off his debts. This results in him being stuck in a situation where he is constantly in debt to Guavo, who is using his labor to pay off the debt. This is known as debt bondage, which is a form of modern slavery.

Lucius Borrowed Money and Could Not Repay What He Owed