debt deflation
noun[U]
ukus(alsocollateral deflation)ECONOMICS,FINANCE
thesituationin whichcollateral(=propertythat will besoldorcollectedto makecertainadebtispaid)becomeslessvaluable:
Theeffectsof abustwill berisingunemployment,followedbybaddebts, thendebtdeflation, and thenfinallyfallingassetprices.