Question

what is debt Trap ??

No copied answer!!

Answer 1

Hello!!

The Answer is :-

Debt trap is situation in which a borrower is unable pay back the loan and he has to sell is any asset to repay back the borrowed money.

Answer 2

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.