The credit activities of the informal sector should be discouraged. Support your statement with relevant arguments.

1. Informal lenders charge very high interest on their loans.
2. There are no boundaries and restrictions.
3. In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrowers.
4. This could lead to increasing debt trap, therefore the credit activities of the informal sector should be discouraged.

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