How is high level of indebtness botha cause and an effect of poverty?
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Cause - debt repayments along with interest reduce income in future leaving a person with less money to buy with. If the income left becomes very low or negative it will lead to poverty.
Effect - even with no money or very less money to buy with, a person still has to sustain some level of consumption (he will need to fulfill his basic necessities at least). So to fund it, he may borrow money which will lead to indebtedness
Effect - even with no money or very less money to buy with, a person still has to sustain some level of consumption (he will need to fulfill his basic necessities at least). So to fund it, he may borrow money which will lead to indebtedness
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