Answer:
Incurring inflated interest charges over and above the principal amount
Step-by-step explanation:
When items are purchased on credit, it essentially means that the buyer has taken a loan to finance their purchase. This loan incurs interest. Interest is the cost of using spending cash money to buy a good or a service in the current time period instead of saving and purchasing it at a later period. Credit providers tend to charge extremely high interest for the convenience of flexible purchasing power. These interest charges, accumulated over time, become a source of insolvency for the debtors who are unable to repay the interest, the principal amount or both.