Debt Traps

Debt traps are situations where a borrower becomes trapped in a cycle of debt and struggles to make the required payments to pay off their debt.

Debt traps often occur when a borrower takes out a high-interest loan or credit card without fully understanding the terms of the agreement or without a clear plan to repay the debt.

This can lead to missed payments, additional fees, interest charges, and further debt accumulation, making it even harder to break free from the cycle. Some common examples of debt traps include payday loans, title loans, and high-interest credit cards.