Question

In situations with high risks, credit might create further problems for the borrower.
explain.
please give me the answer... ​

Answer 1

Answer:

In situations with high risks, credit might create further problems for the borrower. ... He has to repay the credit along with the interest applied by the lender. This increases the problems for the borrower. In such a situation, he is forced to give up his collateral or asset used as the guarantee, to the lender

Answer 2

Explanation:

In situations with high risks, credit might create further problems for the borrower. 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.