Question

what do mean by cycle of debt ​

Answer 1

Answer:

A debt cycle is continual borrowing that leads to increased debt, increasing costs, and eventual default. 1 When you spend more than you bring in, you go into debt. At some point, the interest costs become a significant monthly expense, and your debt increases even more quickly.

Explanation:

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Answer 2

A Cycle of debt is an economic concept that refers to the increasing burden of debt.

Explanation:

• When people have less financial resources borrow from outside money lenders, they have a stipulated date to pay back the money along with the interest amount.
• However, it is generally found that the income of these borrowers is so less that they are unable to pay back to the money lenders.
• The requirement of funds is never-ending, so the borrowing requirements will again arise. The cycle continues.

• This is known as the cycle of debt.