Economy, asked by fahadafsar, 4 months ago

4. “Debt Trap" is a situation when​

Answers

Answered by rima5559
3

Answer:

A debt trap is a situation in which a borrower is led into a cycle of re-borrowing, or rolling over, their loan payments because they are unable to afford the scheduled payments on the principal of a loan. These traps are usually caused by high-interest rates and short terms.

Answered by zahidreyaz44123
0

Answer:

it is a Situation when a borrower is unable to pay previous loan and Takes a new loan.

eg: Paul has taken a loan to pay fee of his son. and he's unable to pay the loan and takes 2nd loan to pay fee

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