A "debt trap" occurs when an individual or entity borrows money and struggles to repay it, leading to a cycle of borrowing more to cover existing debts. This situation often arises from high-interest loans or credit cards, where the borrower ends up paying more in interest than the original amount borrowed. As debts accumulate, the borrower may find it increasingly difficult to escape the cycle, often relying on additional loans from sources like payday lenders or other financial institutions. This can result in a worsening financial situation, making it hard to regain stability and achieve financial independence.