In the context of wealth disparities in the U.S., the term that describes the financial situation where individuals have more debt than assets, resulting in a negative wealth value, is _____.

The term that describes a financial situation where individuals have more debt than assets, leading to a negative wealth value, is called "negative net worth. " This means that when you subtract what a person owes (their debts) from what they own (their assets), the result is a negative number. For example, if someone has $10,000 in debt but only $5,000 in savings and property, their net worth would be -$5,000. This situation highlights wealth disparities because many people, especially in lower-income communities, struggle with high debt and low assets, making it harder for them to build wealth over time. Understanding negative net worth is important as it shows how financial challenges can impact individuals and families, contributing to broader inequalities in society.