👉 The "debt weapon" refers to a financial tool or strategy where a creditor uses the threat of debt collection actions, such as lawsuits, foreclosures, or repossessions, to coerce a debtor into compliance with financial obligations. This tactic leverages the debtor's reliance on the creditor for essential resources, like housing or business assets, to force payment or restructuring of debts. By creating financial distress and uncertainty, the creditor aims to extract repayment without resorting to legal battles, thus exerting pressure through economic means rather than solely through legal or regulatory channels.
