Economy, asked by diaann03, 1 year ago

how can you define debt trap?

Answers

Answered by abcxyz12
4
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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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