What is a debt trap?
Answers
Answered by
11
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.
Answered by
6
Debt trap a. situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal
Similar questions