what is meant by debt trap?

Debt Trap is a situation where you add on a new debt in order to pay an existing debt. Generally, when the firm in overlevereged all the credit sources are exhausted, firm arrives at a situation of debt trap.

Hope this helps:) CHeers :)

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 At times repayment of loan become difficult and credit instead of improvemtn pushes the borrowers into a situation from which the recovery of loan is not possible. thus the borrower is forced to give up his collateral

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 thumps up plsssss

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debt trap is a situatation in which the  borower is trapped by the lender .
                          OR
A Sitation in which debt or impossible repay typically because high intrest payments lures the individual into accepting long-termdebt obligations under conditions that strongly favour the lender.
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good answer
it is right answer
 
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A situation in which a person is unable to repay loan is called a debt trap such a situation is found in rural areas where people depend upon informal sources of loan

For example
If a farmer gets loan from a moneylender to buy equipments seeds etc . and decides to pay it back after harvest . due to some reason the harvest goes bad and he is unable to repay the loan .thus he falls into debt
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It is a situation in which the borrower is unable to pay its loan to the lender in given time.
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Debt-trap is a situation in which a person after taking a loan is not able to pay back the loan.
It is more common in rural areas because
(i) A borrower repays a loan by selling the agricultural produce, which sometimes may not be enough to repay the loan.
(ii) Rural borrowers normally depend on informal sources of credit who charge a high rate of interest. This repayment of larger amounts may sometimes be larger than their income.
Thus, it can be concluded that loans from banks always help to raise^people’s earning capacity.
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Credit in this case pushes the borrower into the situation from which recovery is very painful.
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It is a situation in which the borrower is unable to repay the loan back to the lender in a given time period is called debt- trap. This generally occurs in rural areas. For example- a small farmer takes loan to meet the expenses of cultivation but is unable to return the loan in given time..
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A debt trap is situation in which a debt is difficult or impossible to repay, typically because high- interest payments prevent repayment of the principal.
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it is the situation in which the loan taken by the borrower creates a situation from which it is very painful and difficult to get out of it. to pay the credit another loan is taken which puts more pressure on the borrower and he is trapped and loses his collaterals which he has given as the security to the sector he is borrowing money. 
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a situation in which a debt trap is different or impossible to repay,typically because high interest  payment prevent repayment of the principal
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debt trap is a situation where u can add on a new debt in order to pay an existing debt
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A debt trap is a situation which makes loan repayment impossible for the borrower. They had to sell their property or had to get another loan or debt from someone else to pay the previous one. Credit in this case pushes the borrower into a situation from which recovery is very painful.
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Thank you guys
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a situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal.
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?At times repayment of loan become difficult and credit instead of improvemtn pushes the borrowers into a situation from which the recovery of loan is not possible. thus the borrower is forced to give up his collateral..
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Hope its clear 😊

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Debt Trap is a situation where you add on a new debt in order to pay an existing debt. Generally, when the firm in over levereged all the credit sources are exhausted, firm arrives at a situation of debt trap.

Hope this helps
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me

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