imagine you are a farmer who is caught in a dept trap. How will you save yourself? Give your veiws.
Answers
Explanation:
Farmers usually take crop loans at the beginning of the season and repay the loan after harvest. ... So, the farmers have to sell a part of their land to repay the loan. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap.
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.
4 simple steps. ...
2/5. Say bye to high-cost loans— credit card outstanding, personal loans etc. ...
3/5. Settle existing expensive loans. ...
4/5. Reduce your expenses. ...
Work towards increasing your income. If you or your partner are non-working, you can start taking tuitions, online jobs, etc, even full-time jobs, if possible.
Steps to get out of debt faster
Pay more than the minimum payment. ...
Try the debt snowball method. ...
Pick up a side hustle. ...
Create (and live with) a bare-bones budget. ...
Sell everything you don't need. ...
Get a seasonal, part-time job. ...
Ask for lower interest rates on your credit cards — and negotiate other bills.