explain the debt trap
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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
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It is the situation when borrower is unable to pay previous loan and he takes new loan. This is called Debt Trap. Ex= Ram has taken loan to pay fee of his son and he is unable to pay that loan and takes 2nd loan to pay fee. In situation of debt trap, recovery from loan is very painful.
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