expression, ichidan verb
be at one's wits' end; be greatly perplexed; be troubled
Idiomatic expression literally meaning 'to hold one's head', used when someone is deeply worried or at a loss about a difficult problem.
借金が増えて、頭を抱えている。
My debts are piling up and I'm at my wits' end.
彼は難しい問題に頭を抱えた。
He was greatly perplexed by the difficult problem.