A debt crisis occurs when a country or organization cannot meet its debt obligations, leading to defaults or the inability to pay back loans. This situation can arise from excessive borrowing, economic downturns, or poor financial management. When a debt crisis happens, it can result in severe economic consequences, including reduced public services and increased unemployment. During a debt crisis, governments may seek assistance from international organizations like the International Monetary Fund (IMF) to stabilize their economies. These organizations often provide loans with conditions aimed at restoring financial stability, which can include implementing austerity measures or economic reforms.