Nasai

See, narration: 5456.

Hadith Commentary:
(1)
There are several forms of falling into liability:
For example:
One becomes indebted, falls into poverty, or gets entangled in some financial difficulty.
When a person faces such a situation, he says to the creditor, "Do not worry, arrangements have been made, your money will be paid within such and such days," but he is unable to fulfill this and breaking promises becomes his habit. The trustworthiness, honesty, and truthfulness of such a person become compromised.
(2)
Hazrat Muhallab (rahimahullah) says:
It is understood from this hadith that one should also seek refuge from those means which become causes of sin and breaking promises for a person.
The Prophet (sallallahu alayhi wa sallam) sought refuge from debt because it is a means to lying and breaking promises; secondly, it leads to humiliation, disgrace, and rebuke from the creditor.
(Fath al-Bari: 5/77)

“He violates (the agreement)” because it is a compulsion for him; he has nothing with which to pay, but in order to free himself, he is forced to deliberately lie and make possible promises. From this, it is understood that here, what is meant by debt is not an absolute or minor debt, but rather such a heavy debt whose repayment becomes impossible for him. In this narration, the sin referred to is also that sin which a person commits deliberately and brazenly, or it refers to that sin which the debtor is compelled to commit as a result of the debt, as has just been mentioned. And Allah knows best.