Question

What is Debt Trap ? With Example

Answer 1

Answer:

It is the situation when borrower is unable to pay previous loan and he takes new loan. This is called Debt Trap. Ex= Ram has taken loan to pay fee of his son and he is unable to pay that loan and takes 2nd loan to pay fee. In situation of debt trap, recovery from loan is very painful

Explanation:

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Answer 2

✎ Aɴsᴡᴇʀ

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Debt trap ↴

A situation in which a debt is difficult or impossible to repay is called as debt trap.

It is caused due to HIGH INTEREST.

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