debt traps

A debt trap occurs when someone borrows money and faces difficulty repaying it, often due to high interest rates or fees. As they struggle to pay back, they may need to borrow more, leading to a cycle of increasing debt. This cycle can become overwhelming, making it hard to escape financial hardship and potentially causing long-term financial instability. Debt traps are common with payday loans, credit cards, and certain loan structures that can entrap borrowers if not managed carefully.