Understand what is Debt trap, Causes of Debt traps, how to avoid getting into Debt trap, how to get out of a Debt trap & how to recover from debt trap.
What are “Debt Traps” and how to avoid them?
What are “Debt Traps” and how to avoid getting into a debt trap? The chances of business owners & entrepreneurs falling into debt traps is very common. To meet the growing commitments which has to be met on time, the entrepreneurs are led into a situation in which a borrower is led into a cycle of borrowing & re-borrowing and it becomes almost impossible to get out of the vicious circle. If the entrepreneurs fall into debt traps, it is very difficult to get out of this & many entrepreneurs ultimately wind up their businesses after incurring huge losses.
In this video tutorial, we are discussing in detail, various strategies & suggestions how to avoid getting into a debt trap, how to get out of a debt trap and how to recover from debt trap or else a business entrepreneur will literally end up closing down his business & run into several problems.
Debt trap simply means that one has bitten more than one can chew. If one owes huge amount of money to various people, banks & financial institutions, then it is a sure sign of debt trap. It becomes a never ending rigmarole, month after month. Whatever advantages one has gained in the business will start disappearing slowly & reach a stage, where things would simply go out of control.
Financially a debt trap is a position when the money one owes goes out of control. This situation would arise, when an entrepreneur spends more than his income. The reasons could be a million or it could be simply to meet an unexpected circumstances or simply business losses.
Normally debts which are not managed properly will surely have a great negative impact not only on your financial well-being but also on your health both mentally & physically. Smaller loans can be managed somehow with little adjustments here & there but the bigger loans, especially the loans with very high rate of interests are very difficult to manage. At the same time, it is not something impossible but requires great amount of financial planning and absolute discipline & commitments.
