Peonage is a system of labor in which individuals are bound to work for a creditor to pay off a debt. This practice often traps workers in a cycle of debt, as they may be charged high interest rates or fees that make it difficult to escape. Peonage was prevalent in the United States, particularly in the South, after the abolition of slavery. The system is closely associated with the exploitation of vulnerable populations, including African Americans and immigrants. Although peonage was declared illegal in the U.S. in the early 20th century, its legacy continues to influence discussions about labor rights and economic justice.