Question

What is the meaning of debt trap​

Answer 1

Answer:

When the credit pushes the borrower into such a situation where the recovery or the repayment is very painful is called as Debt Trap. It is generally due to crop failure in the case of the farmers.

Explanation:

Answer 2

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☆☞ [ Verified answer ]☜☆

• 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.

• Debt is an amount of money borrowed by one party from another.

• A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

How do I overcome debt trap?

So here's how you can chart your way out of debt.

• Take Stock Of Your Debts. ...
• Always Be On Time – Automate Your Payments. ...
• Settle Costliest Debts On Priority. ...
• Plan For Prepayment, Take Stock Of Your Budget. ...
• Too Many Loans? ...
• Avoid Too Many ADDITIONAL Loans. ...
• Protect Yourself Against Economic Shocks.

jai siya ram☺ __/\__

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