Question

What is debt trap. Give one example ​

Answer 1

A debt trap occurs when a borrower is unable to make payments on the loan principal; instead, they can only afford to make payments on the interest. Because making payments on the interest does not lead to a reduction in the principal, the borrower never gets any closer to paying off the loan itself.

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Answer 2

Explanation:

When the credit pushes the borrower into such a situation , in which the recovery is very painful is called as debt trap. Moreover, the person wants more loan .Like :- A farmer takes loan but due to crop failur , he was unable to repay the loan.