Question

In situations with high risks, credit might create further
problem for the borrower explain ?​

Answer 1

Answer:

This is also known as a debt-trap. Taking credit involves an interest rate on the loan and if this is not paid back, then the borrower is forced to give up his collateral or asset used as the guarantee, to the lender.

Hope it helps u

Answer 2

Answer:

In situations with high risks, credit might create further problems for the borrower. This is also known as a debt-trap. Taking credit involves a certain amount of loan that is taken by a borrower from a lender at a high-interest rate.

hope it helps you