Social Sciences, asked by arpitasahani, 1 year ago

Define debt trap
Pls only class 10 students

Answers

Answered by Anushkasingh456
54

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 student6389
54

A situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal.

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