What was the debt peonage?

Debt peonage was a labor system that emerged in the United States, particularly in the South, after the Civil War. It involved individuals, often formerly enslaved people, who were forced to work for employers to pay off debts, effectively trapping them in a cycle of indebtedness. This system exploited vulnerable workers, as high interest rates and inflated charges made it nearly impossible to escape the debt. Although it was declared illegal in the early 20th century, practices resembling debt peonage persisted in various forms for decades.