A debt crisis refers to a situation where an individual, corporation or government is unable to pay its debts as they become due. This can lead to financial instability and may result in bankruptcy if not addressed promptly. During such times, creditors may demand payment of the full amount owed, which could cause further strain on the debtor's finances. A debt crisis can also have wider implications for the economy as a whole, leading to reduced investment and economic growth. In some cases, governments may need to step in with bailouts or other measures to prevent widespread financial collapse.