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Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

The solution would be to just negotiate with your bank and postpone the loan payments(if possible).
Cut your costs and try to grow your income. Just don't borrow money from "fast loan" companies. They are way worse than a bank loan.
In my country, even consumer loans are covered by a collateral or by somebody, who guarantees the loan for you.
AFAIK, Life insurance is also a must for applying for a loan(at least where I live).That way when something bad happens(the borrower dies or gets injured) the insurance company would pay a compensation fee, which can be used for covering the loan.
I prefer to stay away form credit card debt. I used mostly paper cash for spending. I have nothing against credit card debt in general, I just don't need it.
 

If you borrow money from bank or on an online loaning company, you may likely be unable to borrow from any other bank or company again, they have a means they can know that you have a loan you have not paid before, because of that they will not borrow you. The best is to just make sure you pay the money you borrow, not to think of borrowing to pay borrowed money.

If you know you can not pay back the money you want to borrow, do not borrow it.

That sounds terrible mate and we should never fall in that trap in the first place. All my life I tried to live within my own means and never take out any loans - which of course doesn't work. I needed a loan back in university to finish my studies and I needed another loan to help our families keep our house and renovate it. In both cases it was necessary to get the money from the bank and there was no real alternative. In my opinion it's best to look at a loan as a means of last resort that should never be used lightly. We shouldn't be borrowing money for leisure or other unnecessary expenses, because the risk of getting used to living a lifestyle above our means is too great. Before you take out a loan make sure that there is no alternative, maybe you can hold of your purchases for a few month and save the money first? In my country it's not really easy to get a loan, the bank asks for a lot of collateral and if they see that you already got money from another institution they will likely not accept any new loan. 

First of all you should not take a loan if you didn’t have the capacity to pay it on time including all the interest. Second taking a loan just to pay the first loan will just make you pile up with more debt due to more interest rate. You should have a stable income from salary or business in able to manage this kind of connected loans.

I do this sometimes when I first apply for a business loan. I struggle to pay since my business is just new and can’t generate enough profit to pay the monthly dues and interest rate so I decided to get another loan to assist me on paying the monthly dues and interest until my business can generate enough profit to pay the loan itself without affecting its own budget for operational cost. I plan this loan including the emergency loan in case shit happened in my business since I have back up funds from my crypto.

Availing loan is very good to get capital without the need to spend yours if you are planning to have a business. But taking a loan for personal expenses alone is a very bad idea especially if you just use the money to purchase something luxury like car and house while your salary is not enough to pay for it.

Many people work this way, and not only people, look at the states that keep going deeper and deeper into debt, and in order not to go bankrupt they keep printing more and more. Even now that there is a small tightening, the debts do not stop growing.

In the end, the individual does not have a printer and ends up going bankrupt if he enters the circle you say. Or selling the few assets he has. A very typical case is that of someone who has a half-paid mortgage, but gets into a spiral of consumer debt and credit cards, and to get out of the hole what he does is to take a Home Equity Line of Credit.

I avoid debt like the plague, although I recognize that sometimes some debt is smart, and many companies do it but for most ordinary people it is usually a disaster.

Most likely people who taking a loan from banks and other regulated lending platform are mostly need to create or expand their business, they're not addicted with loan because they're not using it for increase their luxury life.

But people who taking a loan from friends which is usually a small amount money are mostly just for buy branded stuff for their luxury life, this type of people doesn't know how to manage money and using their money wisely.

What I know is that banks already have a system where if you already have a loan and then want to borrow again from another bank, it can't even be blacklisted, which they cross out, except for borrowing through other channels with the meaning of friends or relatives, maybe you can borrow and cover it previous debt at the bank.

Usually people who borrow from the bank are only for the business they are running, but this is not an addiction, it's just that they want to develop a business from a lack of funds, so I think it's only natural to borrow from a bank with reasonable reasons.

Maybe with this problem you should be able to pay off the loan beforehand because if you borrow again from another it will be complicated and cause problems.

This is just taking from Peter to pay Paul, and it is bad Practice. For loans, Only take or borrow money that you are certain you can pay back, If not at once but in not more than three installments. Taking money from a bank or someone with the hope to be able to raise the money, that is , you have no means to repay but relying on just hope to be able to get the money before the agreed time for repayment is a highly Irresponsible behavior. Avoid getting used to taking loans as a way to raise money, that habit can be bad for your financial life.

People take out loans for a variety of reasons, including starting a business, paying for schooling, or personal reasons. Even wealthy people take out loans; it is a common practice in society. What is problematic is when sluggish people repeatedly borrow money without having a plan for how to pay it back, becoming dependent on it.

That's an obvious unending cycle, paying a debt with another debt is a no-no. I've seen relatives of mine and friends that had hard time getting out of that cycle.

If you're going to take a loan, make sure that you'll be paying it from your means/source or salary. Because if you'll going to get it from another loan outlet then you're just sinking yourself to a problem that's hard to deal with.

Yeah, there's probably the majority of us that has loans, be it from the banks or from personal loans to the people we know. But don't do that if you want to get out of debt and be debt free.

Addictive? It can be but then you are using it wrong. You shouldn't take a loan unless you absolutely need it. If you have a steady job, you can buy something like a house, or a car to get to a job if you need one. You shouldn't buy things you don't absolutely need. Because at any time your financial situation could change. And not getting behind on your bills from a luxury thing you thought needed will make you regret your life decisions.

And even if you think that you got everything under control. Your investments are doing fine and you got a job. Those can be gone in a week. Pandemic taking your job, nearby war crashing your finances and making the price of everything more then 2x in a month. There could be a bank run. And last thing right then is need to pay up those bills of the things you can't even afford using anymore.

Having a credit card creates a great buffer that works as safety if something happens that you haven't budgeted, but you can soon forget it's for your safety only and can easily use it as bonus money. Then you really are in trouble.

I think people get addicted to other stuff that money can buy... taking a loan is just the easiest way to get more money at once, for any sort of reason. It's a vicious circle if you are getting into one loan after another, especially if you are using those loans for fun (which includes gambling, drugs, expensive lifestyle, and other vices...).
So how to deal with it... simply by cutting down your expenses, quitting some expensive "hobbies" and moving to a moderate lifestyle. Focusing on work and finding additional sources of income, for sure it would be better to work harder than to have free time and space to think about "your vices".

I took many loans, but always when I needed more cash at the moment for some big things (sort of speaking). I wouldn't be able to get a lot of things done around the house without loans, short and long-term ones, depending on the amount...

There are loan sharks that ruined your reputation once you take a loan and refused to pay back in time, this means you will not be able to take loan from other loan sharks or banks again, if you really want the truth I will advise you to stay away from loans.

You said it yourself that if something bad happens, this is why it's bad to take a loan to invest in anything, rich people take loan because they have other properties they can drop if anything goes wrong, for those who are still struggling it's a bad idea.

Where I am from you can't change the date even if the worst happened, you have to pay what you own, if not you will not like yourself.

Are you kidding?  Tons of people fall into that debt spiral you described, OP.  That's been the case for many years, and I'd be willing to bet it's been much worse in the past decade when interest rates were at or near 0%.  Many people (at least in the US) live well beyond their means and use credit cards with high interest rates to buy shit like smartphones, TVs, and all sorts of luxury goods--not the types of things you should only buy if you have enough cash to do so.

So true.  They're all over the place where I live, and they're as bad or worse than pawn brokers.  Usury at its worst--and frankly, a lot of credit card companies charge interest rates nearly as high as those places.

Before you decide to take a specific amount of loan, you should definitely have a backup plan that you intend to use to repay the loan before it becomes due, which could be your salary, your payment from your next job, or whatever the case may be. If you are unable to receive the funds needed to repay your loan on time, you should return to the bank or whoever you are dealing with and request an extension.

Taking a loan to pay off an existing one, which I must say is a stupid decision in some cases unless the other party wants a repayment, which is always necessary, is the best decision I will make. If I can't get my hands on family and friends who can help without interest, it is better that way than to get yourself into so much debt tomorrow, which can destabilize one's financial growth.
 
 

I'll agree on this one. I've got friends that had applied for a loan, well, the loans were just small amounts but still they're loans. And these companies are truly wild when they were late in payments. I know that they have to be responsible and follow the contract that they've agreed upon that they've signed that they should pay with penalty for late payments.
But those loan companies through mobile apps in my country as I've said, they're wild in a manner that they're giving threat to the people that they've included as their reference just in case they don't pay. Crazy companies and that's another reason one shouldn't borrow from them.

Taking out loans or incurring debt may definitely have a double-edged effect; although it might help us reach our financial objectives, improper management can cause it to turn into a debt trap. When unable to pay back a loan on time, borrowing money from other sources may provide some respite, but in the long run, it just increases the financial load.

Prioritizing debt repayment and developing a budget plan to efficiently manage spending are smart ways to handle this problem. Planning the loan repayments in accordance with the terms and circumstances of the loan agreement is essential. It's crucial to let the lender know about any troubles you're having paying back the loan; they could offer you some other solutions.

Finding methods to raise income, such as by taking on a part-time work, selling unnecessary possessions, or reducing spending, is an additional option. A financial adviser may provide advice on the best course of action and assist in developing a strategy for repaying debt.

Furthermore, it's critical to take charge and refrain from taking on new debt until the existing obligation is repaid. One might concentrate on creating an emergency reserve for unforeseen costs and strive towards financial security rather than depending on loans.

Just a little background I worked in a local government before, and most of the regular employees there are in this situation. They tend to have a loan that is deducted directly from their pay, and they also have another loan from another cooperative, for which they usually borrow money from a friend just to pay their loan. There is no way around this until your loan has been paid; you'll end up digging deeper until all the loans are paid, unless they have extra incomes from their partners or on their own. Also, I have taken a loan before, and I would say it is not addictive, but most of my colleagues will say to take a loan again, as their reason is that you can't buy those things in cash, and it is very boring if you don't have a loan to pay.

It can happen to people in debt because they are used to getting fast money through it. If they could pay back the debt on time, there wouldn't be a problem if he went back into debt. But most people will find it difficult to return the money they borrow, making them lose the items used as collateral.

To deal with this problem, immediately settle your debts and never owe again. That's all you can do to break the vicious cycle so it won't make your life difficult in the future.

Yes it is especially if you don't have anywhere to go like no other income streams to fill those loan up for sure you will go to that option because you think it can save your ass from your existing loans. But this is really a bad behavior considering that you might get more bigger debt because the percentage of loan became more higher.

If your seeking for solution to end this cycle then negotiate to the person who lend you some money and state the percentage you can only afford to them and don't take any loan from other for sure you or your friend can get over with this.

Paying off debt by opening a new debt faucet is a bad idea, especially if the loan has interest. If possible, we can negotiate with the party giving the lender to give us leeway and a time limit so we can pay it off instead of taking loans from other lenders. And if we have to borrow again because it is no longer possible to negotiate, then seek loans from our family or those closest to us and make sure we make an agreement with a vulnerable time when we can pay. I mean it's better to borrow from family or someone close to you because interest is usually not charged which will make it more difficult for us later.

Taking a loan itself is not addicting but low salaries, the easiness, availability and promotions of taking a loan makes it truly addictive. If your income is very low but your financial loan is very high, then you are truly turning yourself into debt storm and significant part of your daily work is done just to cover debt interests.

Why should you buy smartphone, well, iPhone with credit when you live in the USA where there are one of the highest salaries and the price of phone is lower here than in other countries. I don't really understand that attitude. If a person lives in developing countries where a person rarely makes $200 a month that's some hour's salary of American, then it's logical to buy smartphone with credit but otherwise :D At least wait for two months and buy then.

Apart from them having connected network of knowing people on debt already, I also know that those loan companies or banks has some criteria to know who is eligible to borrow and how much they can borrow.
Someone who is on a lower salary, cannot demand for a loan which their salary cannot cover for a reasonable amount of time.
If you can borrow from rich relatives, it is better than institutions.

I used to borrow from a bank to serve my business, and when the business failed, I fell into a difficult situation, it can be said that I fell into a vicious circle as you said. As I have experienced, I can say that there is no solution to this problem other than you have to save as much as possible, and work harder than usual to have enough money to pay on time. Otherwise, your debt will grow larger as you try to borrow from other places to cover it.

Recently, I learned installment purchasing plans are not included in credit check financial network records. It could be possible to engage in monthly payment plans without it negatively affecting your credit score if you miss a payment. This good be a good method to accumulate debt, in a way which won't affect your APR rate on loans due to credit score devaluation.

It has also been mentioned many times that annual inflation being higher than loan annual interest rates is a good condition for loans. The funds which are loaned can devalue at a faster rate than interest payments. Resulting in less than the borrowed amount being repaid over time. To cite a gross example of this, imagine you take out a 15 year loan for $100,000 to buy a house. If inflation is 9% per year. By the time you repay the loan in 15 years, you may have repaid considerably less than you would under normal economic conditions. Where the principal value of the loan is not devaluing at roughly 9% annually, over a 15 year period.

Cost cutting is another valid method to compliment accumulation of debt. Some recommend going so far as to scour the internet for coupons, sales and deals. 20% or even 5% reductions in the base cost of goods can have a considerable impact over the long term.

Of course, the best way to maintain your normal well-being and get a good night's sleep is to not use credit at all. It is better to deprive yourself of something than, as you say, fall into a debt trap. But today there are a lot of banks offering their services, and people are tempted to want to get money faster, sometimes not thinking if everything is in order with how they will return it. Having a stable income also does not guarantee that everything will go as we would like. But life on credit is a part of our lives, and either you sleep peacefully without debts and know how to relax, or you are constantly under the yoke of debt, which, if it is impossible to pay on time, kills your health every day. Everyone has a choice.

It is a type of an addiction and there are certain people who like to take a loan instead of directly paying from their pocket even when they have enough money on them.

It is a vicious cycle unless that person takes back control in their own hands and clears off all their debts and stop this habit. I personally have seen some people who are always doing this and they dont seem to accept it as a problem - "you should do it too" is what they say when I attempt to snap them out of it.

Then there are those people who gamble with borrowed funds, that is defenitely going to go south. Their correction is through their gambling habit, not the habit of taking a loan.

I've also noticed a trend of taking small, unnecessary loans of a few thousand euros from a few people in my surroundings. The majority of people are easily tricked into thinking that it's fine to pay a relatively small amount of money on a monthly basis and are carried away, not taking into account the accumulating interest or accruing payments. This is also common with credit cards, which are way more convenient and quicker than taking a loan. Credit cards are practically a form of borrowing money since you're basically going into debt in order to purchase something, making it look more affordable to conduct purchases with money you don't actually possess.

It is a problem on its own if you take up a loan without paying it on time as agreed. Not to talk of taking up another loan just to pay up the previous borrowed loan.

In my country, you wouldn't dare take out a loan and fail to pay it back when it was due, and banks wouldn't harass you by calling you to make payments on the loan. When one of my friends failed to make her loan payments on time after taking out a bank loan, she was called names and had her life threatened

If you don't have the means to make timely payments, you should avoid doing anything like taking out bank loans for your sanity sake

Banks will always have way for debtors to pay them, some uses collateral like their properties and cars. There are also who have co-maker incase someone didn’t able to pay there is someone they can ask to to pay for that debtors. Banks are smart enough to find ways where they will still get interest at the same time assurance that debtors will still be able to pay them if not thru money but thru their properties. That’s why if we must be responsible when we ask for loan as we might lose more in doing it if we didn’t pay on time

Most people who go for loans do not do it because they want to but they have to because of pressing needs upon them. From your comment I perceive that you are still very young. You could be in your 20s and will not know what those in their 30s and 40s with depending relatives and family responsibilities or business go through. Just pray you do not have such situations upon you. Most debtors will gladly pay back but there are some who are quarrelsome once it gets to pay back time. We know that. They are bad debtors.

That's what will happen if we take out a loan to start a business, whatever business it is. Maybe it won't be a problem when the business we build is successful and advanced, but on the contrary it will be a very big problem when we fail to build a business or business, because it will leave debts that we have to pay every month. The impact is on our financial condition, because it will drain our wallets to fulfill the obligations of what we have done. So as much as possible avoid it, unless the circumstances require us to do that.

As they say, you can't correct a mistake by committing another mistake. Well, I'm not saying that taking a loan from an online platform or bank is not a wise thing to do, but those funds should only be taken and used for emergencies only or some other important things that needs urgency. But taking a loan just to get your wants even if that's really not important isn't a wise move because those loans got interests entailed with it and in every due you failed to pay will make the interests worse, and hence, why some people will borrow just to pay those loans and end up in debts again.

Yeah it is a vicious circle and many people are just like falling for it even in basic sense. It is not just loaning in bank actually. It also happens in many individuals that are really desperate to get what they wanted to get and they would do any means to get it and of course, loaning would be one of them.
This is why I do avoid credit cards and debit cards as much as possible.

You know what they say.

This has been happening to my neighbor. They will loan so they can put up a small business but they couldn't manage it wisely so they end up in bankruptcy while still having their debt unpaid so what they will do is find other loaning companies to borrow funds again to put up another business and to pay their previous loan and things will just happen repeatedly. As a result, they are now in a deep dept all over our community and since they can't pay everything, they are hiding from their debt collectors. This is ridiculous because they can't live in peace. As much as possible, we should not borrow money if not needed and if we don't have enough resources to pay for it. We should also don't live a lifestyle that we can't handle wisely.

I too don't like to loan money and never did any business with borrowed money... till last year. Last year, something happened and it changed my view on this subject completely. I realized that I can borrow money with very low interest rates in my country and the inflation rate is way above the borrow rates. So what did I do? I took every loan I could think of and bought every real asset that is producing income. The government is basically giving me free money. Why shouldn't I take it? The assets I bought create a streaming cash flow and paying my debt. In the end when I pay all my debt, I will the owner of them assets and have no debt. It is a nobrainer.

I think it's always possible to start a business using our own money and this business doesn't have to be big at first because it's only getting started yet. It's possible to lose this business but at least the burden that we feel is not heavy as if we have outstanding loans to pay. There is a solution to any problem including this one and you already gave a few of it.

Some people think the solution for this problem is to take another loan which is wrong because we can only fall on that said cycle and it will now be hard for us to get out of it. Other than that, taking a loan is truly addictive. I can prove it because my neighbours have been doing it for a long time now.

This is likely called like using another loan to cover for the old loan and some people live their life like that and it is nothing wrong for them that way. This is certainly a problem for some people though because they can not stand the feeling of not being able to repay their loan. One challenging thing about loan is that the collateral is at risk of forfeiture when you are not able to repay and this is why people do another loan to cover the old one.

it might be justifying to borrow money to invest on a business or because of emergencies. But borrowing to meet a need or want is not adviceable. One can borrow to start or expend a business and the profit can be used to finance or repay the loan. Also, there are times when their are unforeseen occurrences such as sickness, accident or other losses, one can decide to take loan to meets these vital needs.

But when one borrow to buy food, clothing, car, or other accessories that are used mainly for pleasure, their are chances that it might be difficult to pay. Borrowing is not a good lifestyle because it can lead to other issues such as gambling, corruption and health issues.

The best way to deal with borrowing is to spend below your means and look for alternative sources of income if your pay is not sufficient or meeting your needs.     

Taking a loan just to pay up another loan? You are just making yourself get drowned by interest and there's no way on getting into that cycle.If you dont have any other choice and it would really be that important for you to take up some loan then deal with those interest but as much as possible or as you could then you should really be avoiding on doing so.Better to live up on something that you wont really be involving for
some loans because if you dont able to get out with that cycle then you are just been milked out by those lenders but there are indeed situations on which it cant really be avoided
for you to step into this area which you do need to borrow money when you are short out of funds.

I don't think it's addicting but more of sort of getting used to borrowing whenever you have tried getting one. Once you did it once, you will always have the reasoning that I can just take money in advance, I will have money to pay it anyway before the due date. That is fine if you are responsible enough to pay all your debts on time, but what happens if you do not? That becomes a problem. Usually, those who end up getting huge amounts of debt are the ones who cannot control their finances responsibly.

As long as you keep your spending in check, you're fine to go ahead and take a loan IMO.

Loans are only good when you want to use it to boost a business that is failing,it is not good to take a loan from the bank or any loan company if you don't have a means of paying back. Loans app are like slow death as they will keep on messing with your reputation by letting your friends and family know that you are owning their platform.

When the time for the pay back expires,and you couldn't meet up,an additional interest will be added due to delay and before you know it,the loan that you collected interest will keep on piling up. In my county if you are collecting a big amount of loan,there must be a collateral which an agreement will be signed between both parties involved,so that when you can't meet up to paying back at a certain period of time,the property becomes theirs. I hate having it in mind that am to payback a loan,it gives me sleepless nights.

Taking loans is not addiction because a time will come when you will be hunt by the bank or loan companies for your arrest.

Sometimes most people don't take on debt because they want to use it for luxury or for something that can wait, but sometimes they do because that's the only option left for them. Let's say I'm out of money and the only way I can earn money is through my signature, which I'm wearing, and if I don't finish my post for the week, I won't get paid, and in the meantime, my gadget develops a fault that requires a small sum of money to repair, which I don't have at the time been but I have hope of funds if the gadget is with me, the option which will be left for me is to either the repairer to repair the gadget for me on credit and give an exact date of payment or i take a loan and fix my gadget when i get paid from my work i repay the loan. In cases like this to me it's worth borrowing for. 

There are really indeed moments in our lives on which we dont really have any option but to take up some loan which it isn't really that bad just like the rest been saying but be sure that you are really that paying

them on time because you are really that obliged on doing so.If you cant then you would be facing up some penalties and charges which is really that normal for those lending firm or individuals who do let you borrow.When you dont have extra money or funds or already had been exhausted then you wont really be having no options.

Its not bad to take some loan or debt as long you would be making yourself that responsible on paying it back.

It actually happens in real life, not to me but to my friend.  However, I understand their sentiments about why they do that because they have no option and many poor people did the same. It is a big mistake to borrow money just to pay for another debt, it becomes continuous, and couldn't get out of it unless you will increase your income. Sometimes we are too blind not to see the other opportunities around us, it is really a need for us to work hard and sacrifice ourselves from buying unnecessary things, instead to prior paying our debts. But if we can't do it, therefore, there is no way we can settle this thing forever.

This is why the rich becomes even more richer because they do really take advantage into those people who are really that in need and taking up some loans and make them do have the advantage.
Each of us does have their own struggles in life specially when you are an average wage earner where unexpected things do happen or emergencies which would be the cause for you to borrow
if there are no other choices that you could rely or depend on.Just like the rest been saying that taking a loan isn't bad as long you do obliged yourself on paying up your responsibilities
then you wouldn't find any problems.

If you wanna be happy and have peace and be happy stay out of debts. Sometimes it hard bit you but you have to try. Or rather still when you do pay back as soon as you get the cash. Also avoid loan sharks,
 they a vicious and would not hesitate to prey on defaulters. I do not think people get addicted to loan cash.

I guess its all I'll be talking about today because, I just saw a thread that focused on loan just a while ago although, it came with another context that centered on having to invest with loaned money.
It's okay to take loans, besides that's what the facility was provided for, to help you archive that which money serves as a limitation but, you ought to pay it back and with interest if it does come with one.

Well, in my nation, loans have been really popular and we've got lots of loan apps or firms out there and these guys have been cheated of there money many at times. The few that have got it right is the banks. They've got BVN  (Biometric Vertication  Number) to link accounts and it doesn't matter which bank was used to taking a lone, agree to the terms of deduction and you would get deductions whenever its credited.

For other financial firms, its just different. There terms are sly and people just ride on them all they want.

Before you could borrow money from the bank, you would have to present some form of collateral that has to be of some great value so if you at any time default on your payment to it, the bank would use your collateral to service the debt.

I would advise against taking out loans. And if someone already has, then it’s wise to get another or several sources of income and work your ass off to pay off those loans. Cause the bank doesn’t take no for an answer. Neither does the loan shark. Especially the loan shark.

It can be addicted only if you think of taking than paying because some people always think of themselves than the people they're owing and they say "is a small money, I'll pay later" that's how you impose yourself in deep problem without you knowing. Is better to live a free life than seeing yourself running from your fellow human being cause of taking loan that you would have cleared off all in the name of greed. At some point you sit down and say money is the root of evil, that's something I don't really buy in this case.

It's and I have experienced it first hand, I had a friend who was a serial loan taker, he takes a loan just to pay another loan and this circle continues and now he's in a debt that he can't even clear in years to come and that's exactly why I avoid borrowing this kind of people money instead I just give them whatever that I'll be comfortable if they can't pay back. It's circumstances that make people take loan but there are people's that are now addicted to it that it becomes a habit.

It doesn't really matter how much they earn as they're always running out of cash due to poor money management and then go asking even those who aren't earning as much as them for loans. I won't recommend anybody taking loans if it isn't that necessary. Avoid it at all costs it's never a healthy life decision. Always try to manage any little cash you have and prioritize the important things in your life and neglect the wants.

In this case we must first read the situation and what this debt is really for, if in business sometimes we need funds to increase our business capital and on average entrepreneurs take this, and of course business is not always smooth there must be ups and downs in income, so that when income decreases and cannot pay monthly bills in my experience it can be discussed with the bank because this concerns the smooth running of the business and cooperation.

But in the context of consumer loans, banks usually have no tolerance and even if you take a loan from another bank, I don't think it's easy because your loan data will be available at the financial services authority and all banks use it to review your profile or history in finance. .
Digging a hole to close a hole is not a good thing, in fact it will make your finances worse and a lot of problems.

Loan is always easy to collect and when its time to pay back, if you don't properly plan and strategies yourself you will become a debtor in all angles. I usually take loan whenever i know am in an emergency case and not only that also when i know i can be able to pay off within the period given because if you fail to clear off the pressure sinks in you and some people tend borrowing more loans just as you have stated to clear off and that entangles you in a loan circle.
Noteits better to always consider what the money collected is used for because if its for pleasure, you obviously can't pay back

I have witnessed a lot of people taking loans to banks. they use the money from the loan to increase their business capital so that they become more advanced. and their business has been running for a long time and seems to be doing well. But they said they were tempted to further scale up their business. well initially their business looks to be better. But after a few months I heard that they were having trouble paying loan installments to the bank. so they are forced to reduce their business capital and take the money to pay installments at the bank. but other problems arose in the following months. and now their business is even going bankrupt. it's as if their business, which was originally fine, has decreased after having a loan from the bank. and they even take other loans from loan services in online applications. because they want to keep their business going. and it seems many have experienced similar cases. i don't know the problem. But I think it's about poor financial management. and I hope we can avoid the temptation of borrowing in any form.

That's not so, for one thing because not all rich people are in the business of lending, far from it. They become richer because instead of having low incomes, as is usually the case in the cases mentioned by the OP, in which people get deeper and deeper into debt, they have incomes that exceed their level of consumption, so they invest the excess. If instead of going into debt and paying interest on it, you invest and receive interest, you get richer and richer, and as your wealth increases, as long as you don't increase your consumption level above the increase in wealth, you get richer and richer in autopilot mode.

That is the purpose of loan for emergency and there are things that needed to purchase but others are using it for their wants that is why some people can't pay it back because it was too expensive or its to big to payback. Having loan is not pleasurable also as you always thinking it everyday mostly if your salary is not enough and also you need to cut expenses to give way of your loan. We should stay away from debt as long as we can

I can attest to this but not for me but for the people that I know. It's true that it's a spiral trap and your debt will look like have no way of ending because you'll get used to it.
One perfect example is our neighbor. She's an old woman but kind but I've seen how tough her life is due to the situation that she's got, every day the lenders walk through and knocking her door because that's how she thinks about how to end her debts by borrowing again to cover and pay for the other one which is obviously not gonna help.

I am fortunate to have no debt in the form of a loan in my life and I also do not want to try it for whatever reason. I'm just afraid that if I can't return it for some reason, the lender could be disappointed and angry with me. But for those who borrow frequently, maybe they won't feel it because they've done it to many people and they can repay the loan. It was very difficult to stop because it had become a habit from a long time ago. And if they want to stop it as soon as possible, they must have the money to pay off all that loan debt and be determined not to borrow money from anyone else.

Now it's easier to take a debt, the many offers of applications that provide loans with easy terms make many people trapped with debt, moreover the debt is only used for pleasures such as travel, culinary, hobbies and so on, and it can be said that debt is now is an addiction.

Taking loans or debts is an addiction that banks have created. As well as global development. We have usually one or several sources of income, but too many things we think we need or could get. This is the lust to have more or curiosity to try something. Loans are easy money, the way to get something fast and easy now, instead of waiting.

Loan/debt is an addiction that can be stopped easily, despite other addictions. Sometimes it is enough to go through 1-2 loan, to resist from taking a new one. There are people who are addicted to take loan all the time, to live on credit. Such addiction can be cured with sudden receipt of a huge amount of money.

It's because the profit there is a lot and they can easily take collaterals that have a higher value than the requested amount. But if it's a non-collateral loan, they are getting the information of the borrower and its relatives that will be signed through reference.
So, if ever the loaner defaults on it, they will chase them and will have some words that the loaner will certainly don't like. That's why it's a trap, those that have tried it before won't be doing it again not just because of the rates but the shame that they've got.

Getting a loan from a bank is a very risky activity.  The bank loan will need to be repaid (in this case, not only the body of the loan, but also the accrued interest payable). 

Therefore, a loan can be taken only for very important purposes (for example, for business development or for the acquisition of promising real estate).  Some borrowers believe that it is acceptable to take a bank loan for the purpose of obtaining higher and secondary education (however, in my opinion, this is a controversial point of view). 

Refinancing does not solve the problem, as it only increases the credit burden. 

In my opinion, you should try not to resort to a loan of credit funds in principle.

Taking a loan is a risky move, but the risk varies depending on the reason you're receiving the loan. I've had acquaintances with unstable jobs take an expensive car loan at a young age because they want to show off with their car; I've had others who wanted money in order to afford a vacation, and paying a loan with monthly instalments was their way to go. These two examples both show an awful approach. The only reason I'd be okay with taking a loan would be for investment purposes, such as repairing or renovating a property for personal use, renting, or selling.

Not exactly a loan, but one more use of credit cards is to pay for stuff you can't avoid, such as insurance, taxes, etc., in interest-free installments, making it more affordable to pay and usually earning cashback points depending on your card.

To start with, I would want to believe that for anyone going into taking a loan to do anything, that thing or investment should have to be something that is capable of generating the payback money for the loan you have taken if not 100% but at least to a reasonable amount but not to collect a loan to buy what can not or will not generate profit to pay for itself somehow. if not in this line, then a loan for me is a no-no.   

If you're not going to stop the cycle you will end up neck-deep in your debt, so stop the cycle you will not only lose your reputation but you will end up penniless because of the interest, it's better to sell whatever assets you have there, so you can stop this vicious cycle you will eventually land in prison if you will not stop the cycle, you can file for bankruptcy and let the take bank that whatever assets you had and find a good job to repay the bank.
Sometimes things like this should happen for you to understand that taking a loan is not always the answer, but saving little by little goes a long way.

Getting a loan to start up something meaningful, that will profit you something by the end of the day is a very good idea. You can get profit from there to pay back your loan.
And it will build your reputation more and after paying back your old loan you might even get more loans.

I don't think taking a loan is a bad idea, but when you are taking a loan, make sure it is used for something meaningful. Also if you are taking loan, make sure you borrow the amount you can afford to pay back at the given time, don't loan any amount which you can't pay back, so you won't endup taking loan from other places just to payback for the loan you borrowed and you haven't paid back. If you keep on taking loan, anywhere you borrow money from will definitely add their own interest.

Borrowing and loaning money will be a lifesaver and a big help to those who want to start up a business without enough capital but it should be handled and managed well. Loaning must also be accompanied by a proper lifestyle where we control spending too much on unnecessary things so we can save and prioritize paying our debt first. If we are responsible loaners, then borrowing will never be a problem that we could face in the future.

Yes, it all depends on us too, don't be easily tempted by debt. Stay away from the habit of being in debt, all those who are in debt certainly want to have all their needs fulfilled until they finally dig a hole to close the hole because Debt Debt in the end has a lot of debt.

Therefore, before going into debt, we must have a steady income to pay off the debt that we will borrow. If you decide to go into debt, use the debt to help productive finances.

I will say that I am familiar with such a case and in fact it is a very terrible addiction, in fact it is not even an addiction, but a real disease that a person is not able to cope with on his own.

I knew a man who constantly took out loans, he made good money, but spent much more and that's why he took out loans. At first, he repaid the loan when received a salary, but then this was not enough as his debts grew and he had to take out more loans to cover the debts of previous loans. It was like some kind of horror, but he could not stop.

The debts reached some unrealistically large values, and the banks started blacklisting him, so that he could no longer take loans.

As a result, his friend saved him, he paid everything for him so that the banks would not take away his housing, and this man promised to give everything, it's just luck that they helped him, he still repays him every month. But I will say that I do not believe that people can change, only qualified help is needed here, otherwise sooner or later everything will return.

Taking loan isn't dangerous nor an addiction, and we generally take loans for our financial needs but most of us mismanage the loan funds and fall into debt, borrowing from someone can avoid the defaulting but it doesn't give a permanent solution so first of all for what reasons we are taking loan is important, for something which is not really productive then you should not take a risk with it but if you are sure it can be a life changing when you have the money then its worth to take.

And importantly loans builds the credit line so one who pays the loan on time will get less interest loan than defaulters.

Loan taking is not an addiction but it's addictive and those people that see this coming are so few and the number of people that would be affected is also few. It was still better when only commercial banks give loans where you will have to go through some tough/strict conditions and have collateral before taking loans.

But things have revolutionised, nowadays, you can take loans as fast as you can imagine, and this is mostly done without any collateral. This is where the addiction starts, and to be sure of what I am saying, I was getting addicted to loan apps between 2021-2022. I would have money in my account and still be craving for a loan to show how bad it was.

I am not sure taking loans is necessarily an addiction, as someone may continue taking them out of necessity, out of being unable to get out of the constant owning of money. If a person gets out and can cover basic needs without a loan and takes one anyway, even though it will lead to another circle, that might be addiction.
I'm not from a country where taking loans is considered normal, and I don't remember ever taking one myself. But I do know that some countries have this whole thing about having a positive credit history, and about it being typical to take mortgages, student loans, as well as use credit money once a bank account runs out of salary... I also feel like it's a very dangerous path, excluding perhaps mortgages.

Taking out a loan from the bank for a good cause(mostly something that would give you good profit in the long run) is okay. You could always find the money to pay back the bank.
Banks are the first financial institution people go to when thinking of taking out a loan and they’re famous for getting their money back from their clients. As a business owner, It’s always good to build up a reputation especially with the bank so you could get huge sums in loans whenever you need it. That could come in handy when you need to make some immediate payments or purchases.

Not everyone that's taking loan is having intention to start a business with, anyone taking loan is always having personal reasons for doing that, so the best thing is that always take loan that you can pay back easily and make sure you don't waste the money anyhow, have seen someone that have taken loan to celebrate birthday before which I believe that's rubbish, I don't really think things like that really make any senses, if you are taking loan, then make sure you are using the money for something reasonable.

I think debt needs to be understood first and understood the benefits and drawbacks and how we can react to it so that we don't get trapped and enter into a vicious circle. Especially if you owe it to invest in crypto it is very risky.

Debt according to our ability can motivate us to work. My father said that debt is also not a loss if we can really make our debt productive. we can make repayments and we can make ends meet for our daily needs. I myself have cash but I also have debt for business capital.

This is definitely a way that goes on to create a very bad life. My parents were like this, and they screwed up really bad in the end. If you are taking a loan, then make sure that you can pay it back, if you have to just get a big bag of rice and just eat that until you have enough money to pay.

I literally mean living as cheap as possible, just rice, ramen, noodle, water, and barely minimum of anything else, no netflix, no disney plus, nothing, just spend as little as possible, do not even drink coffee. I did this, I had debt for four months, and I lived as cheaply as possible and spent nearly nothing, and paid a huge debt back, which should have taken me 3 years in normal situations, took me 4 months and I am now debtless again.

It depends on how this is done, if the interest rates you have to pay are very high for the loan you took but you can restructure your debt and ask for another loan with lower interest rates, then this is the one instance in which it makes sense to ask a loan to pay for your current debts, as this will reduce the money you have to pay and the overall burden towards your finances, but this is rare and the majority of those which engage on those practices have some sort of problem managing their money.

There is only one good type of loan to take for most people and that comes in the form of a mortgage. People might take a small loan when they're younger and inexperienced, or simply have limited means to support themselves through tougher times, however it is better to stick to positive balances than go into debt. I don't think people get addicted to them at all, they are mostly taken out of ignorance, greed or desperation which is usually connected with the higher interest rates. The best way to avoid it is educating yourself about financial matters are early as possible and trying to build up some form of savings if you can, which act as a buffer against financial shocks.

Actually i had able to experience this on which i do have several loans on different lenders but decided up to take a huge loan and pay up all those small ones.Why? you could lessen up the stress because there are no lots of due dates on which you would be finding ways on how to repay them.You could only have 1 date for you to mind off which i could say its less stressful but still i do still make out those list
considering for some possible back up solutions if ever i do need up some money.Also, im trying out to take a loan to make some records and histories which we do know that they
might be useful someday when you are in need.

I am not experienced in lending but the solution from the statement can be a solution to cover many small loans from new loans, but the situation has not changed much that you only face 1 borrower but the loan payout is bigger, but the stress of mind decreases because we can avoid 1 the problem is if the situation is urgent to postpone the loan for one month, but after all being involved in the loan there is no comfort in doing activities.

There is nothing better than starting a business with your own savings, without borrowing under any circumstances, because we never anticipate the difficulties we will encounter. So I generally disagree with the idea of borrowing money to invest in bitcoin, it's 100 times more risky when you borrow money to open an outside business. Many people have never experienced the feeling of having to save or starve to pay off debt, so they think that borrowing money to invest is not too difficult. It was a misconception until they faced it, I still haunt it every time I remember that loan.

Yes, of course these days it's easier to borrow the money we want, especially for the things you mentioned, namely playing, shopping, traveling, culinary and other things that might be consumptive in nature. It really can make us addicted to borrowing money like that, but it's not a good thing for long-term financial health, especially if you can't pay, as the OP said, looking for another loan to pay off the loan will certainly make financial ruin later. but it is true that the easier the lending mechanism makes us want to continue borrowing so that we may not realize that we are trapped in a banking trap.

When one person borrows, this can be a habit, especially now that many applications provide convenience to owe, with capital identity and video call, in a short time 2 or 3 hours the amount of loan that we propose will be accepted in the account, even many people are Making online loans as jobs, they borrow in many places and when it is difficult to pay, they immediately block or change mobile phones.

Exactly as your stated. It's such a misconception that taking loans can be a solution to whatever financial needs. Most people don't even think about this until they are trapped in debts. I think nowadays banks and any loan lending institutions are also to blame because they know most of debtors are unable to pay their debt on time but still they would lend the money to make money. Keeping away from loans/debts as far as possible is the best way to avoid the trap.

I've seen some people around my community doing this type of thing and I saw one common thing to all of them.
They are struggling to budget their monthly salary. All of them are the same.

I mean they will get a loan not on banks, but for a specific person (P2P loan) and then if they can't pay that on time, they will borrow again to another person (P2P loan again) and the cycle goes on and on and on until time comes when no one wants go give a loan to them because of what they are doing. TBH it's very unfortunate to see people doing things like this, but on the flip side, I can't blame them at all because their monthly salary is just enough for them to cover their daily expenses. They don't have any emergency funds at all thus, they are forced to borrow money.

How would I deal with that problem? 3 ways.
1. Have an emergency funds
2. Add income stream.
3. Don't do it at all.

Having an emergency funds that will help you whenever you need of something will be a big help and you will not force yourself to borrow money because you have money already to cover whatever expenses you have.

Adding income stream will help because like what I said, you will not forced to borrow from other people or banks since you have enough money to spend.

If you don't want yourself to be on this vicious cycle for your whole lifetime, don't do it at all. Those 3 ways are kind of connected with you get what I mean. :)

if we have a debt and instead borrow again from another party to pay it off, it is tantamount to endless. In my opinion, if we have debt it's better to focus on paying off the debt without having to borrow again from other people, we can find additional income without borrowing again from other people. if you continue to borrow from others it will be difficult to pay it off, like a chain that is always connected, it is difficult to find its end

Well, borrowing money is too easy but paying it back is somewhat hard. That is why we could say that it can be an endless debt. But it seems to happen if we are not financially educated because many people think that borrowing money is a solution to pay for other debts and it is coming back again and again.

However, I would say committing debts is not wrong provided that it was not too much that we can't repay without borrowing from another person. And a reason why we should think about it multiple times become applying for a loan otherwise, it compromises our finances for the whole life.

    -   Most people's problem is a lack of finances and most of their solutions to that are debt or they borrow money. That's why in my country boom-bays are rampant because they lend to people who love to borrow and then charge you every day.

The others have become a vice, even though they don't need to, they still borrow. and the others using credit cards where the interest is more severe and large. So the result, in the end, is in debt.

So the good solution here is to pay off the debt and then not go into debt again if you end up in debt.

In my country as a borrower, you have to pay an extra percentage on the amount you borrowed and if you fail to pay back in time your percentage will start to increase, it will get to a point where cops will be on the hunt for you if you vanished or the lenders can't reach you on phone.

I have seen friends and families getting addicted to taking loans for businesses and some doesn't end well, they took loans and it turn to massive debt. When you take a loan to invest in a business you can't be sure that the business will prosper because everything is risky.

Borrowing money to pay up a loan does not solve any problem,  the problem is still there unsolved.  The only option to solve this problem is to look for away to pay the debt without taking another. It is a very bad habit to take loans to pay or loan , and it is not going to help financially at all. The only reason to go for a loan is for a business that I am very sure I can get profit to pay back or get money from somewhere else to settle the debt. If I'm not very sure I won't go for a loan because I hate going through financial stress to pay money that does not belong to me.

The trend of online loans is increasingly widespread and we can easily get them on smart phone applications, unfortunately online loans provide very high interest, but those who are used to being in debt don't care about high interest, the most important thing is that they can get pleasure from loans even though it will be a problem later because of difficulty paying.

I have made loans to banks several times, but all ended in disappointment because I didn't use the loan money for productive things, such as starting a business or business. I advise you not to make loans to banks to pay off debts, buy luxury items or eat food because you will definitely regret it and get stuck in a vicious cycle of debt.

Hmmm this is what happen to last year and actually it affects me until now. I am hoping to get my salary to my part time job last year that's why I made a loan online because I knew that time that I could pay it fast since I am working and eventually it will give me money but the thing is Ieft with nothing. My client kicked me and my debt increases each day, that's the thing That I don't want to happen again, it teaches me very painfully.

Most of the time this is how loan amount gets wasted. Finally the purpose for which loan is being taken doesn't gets done. If not half the amount gets used for some other purpose and everything will be in half done situation and we once again look for ways to increase the loan amount with some process involved. As majority suggested it is good not to get into these kind of loans. Go for loan only if you're strong enough to use it for the right reason and pay it back correctly.

Loan is good for something like buying a car or home with our income being assured for the next 7 - 20 years. So that it'll be easy to repay as well as have our car/home in our name just paying the initial fund whereas it take years for us to save the entire amount and buy it.

Taking a loan isn't addictive, it is that you take another loan to pay for your earlier loan and it go a cycle.  It isn't addiction but rather a circumstantial need to pay off earlier debt.  The only way to get out of this endless loop is to have extra earnings.  If you have lots of time, you can look for a side job.  Earning from this side job can help you greatly to get out of that endless debt cycle.  And be thrifty but not to the point you are harming your health.

Op, what you just described is very irresponsible way to deal with debt. One should not even borrow money if one is not sure about being able to pay back, that being said.

The only scenario I would see someone doing that if they found someone to borrow money from, at lower interest and better conditions in general, but still.

I have met people who get debt so they can push themselves to work harder. Instead working to get a new phone, for example, they borrow money to buy the phone and then, they are forced to be responsible to pay.

Does not sound very healthy either.

Everything should be in balance specially when earning money.Yes, we could have multiple sources but we should also mind and prioritize our health too because we know that on the time that our body is ill
then it would be still useless since those money that you are earning would really be just going into hospitalization on which thi isnt something that we dont really like to happen.
Taking up some loans just to pay up another loan is something a very common scenario and even myself is really that able to experience this one because there are really moments in life
which you cant really be able to avoid to take up some loan just because you had been shorted out on your budget and some unexpected situations or  circumstances.

Taking a new loan to pay off some old loans is not a bad thing because the economic situation is difficult will require someone to do that, I have seen several of my friends do the same thing because they do not have a steady income to pay off loans on time, another reason that he Uneasy with lenders because of their too harsh characteristics and snapping when collecting loans, so he decided to take a new loan from someone else to pay off the first loan.

even though taking up some loans just to pay your other loans might become solution for temporarily but I'd say it's really quite harmful against the well being of your financial condition since you simply gonna pays more as a side effect of prolonging your loan payments.
of course there's nothing wrong with it if you have no other solution and your income is delayed but just don't get too holed up in loans since there's always more money that you gonna pay everytime you're dealing with it. that's just how loan works, it's just more money and money.

when it comes to addiction, I don't think so either, someone who takes out a loan in the form of debt, be it at a bank or a cooperative, of course, has collateral that can be trusted by the giver, whether it's land or a shelter.
With this guarantee, the bank can trust the borrower. As for people who become addicted to taking loans or getting into debt, it is caused by great desire so that they have to look everywhere until in the end the debts and loans cannot be settled. I think before the onset of "addiction", it is better to avoid loans and debt to the bank if unable to pay off the payments.

Well, sadly in my coutry, most personal loans don't require any collaterals and even let's say, you earn $1000 per month, you can get a loan as ten times or more what you actually earn. This is one of the reasons why so many people can easily get loans. The collateral you were talking about, such as land or a shelter, only applies to companies that intend to borrow money from a bank for business use.

Once a person is in debt and can pay it off, this will make him think that debt is an easy thing, many people are stuck with debt so they have to look for other sources of debt, of course this is the wrong thinking because debt will make us only think about settling debts, immediately leave the habit of debt because this will get us in trouble.

if so it is very easy in your country to take out a loan. may have different rules in my country, if we don't put collateral for taking a loan then the loan is not provided by the bank.
well, if that is the rule in your country then it is very possible for many people to take loans for other purposes.

I wouldn't call it an addiction, I'd characterize it as an inevitable cycle once people begin to start compounding loans on top of each other.

Most people that start stacking loans have no idea how the interest rate will end up effecting them down the line. And if the penalties hit, the interest will increase and your credit score goes down so that future loans are at higher interest rates.

There are plenty of predatory loan companies that will make their businesses by having people pay off their debit with insane interest rates over the course of years.

It can be like that because when we try to borrow and succeed in paying the specified timeframe along with the interest, you will try to do it again with a larger nominal, and so on because when we have already tried, we will continue more daring to do it again and again which is not very profitable for them.
Not making loans is something that is actually very good regardless of anything as long as we are able to support our lives then why should we do that.

Loans that don't require collaterals have also flourished in my country over the past few years. But I assure you, it can't be addicted because, with those types of loans, you will have to pay very high interest rates, even 2, 3 times the bank interest rate. I have a cousin who was in a similar situation, he couldn't even pay the quarterly interest, let alone the principal borrowed. Many times he tried to flee the homeland because he thought he would be unable to repay the debt. If he does, he probably won't go to jail, but after this, he will never be able to get a mortgage from any bank again.

there are several conditions or reasons that make people take out a loan. there is a reason for being forced. such as meeting the necessities of life which are increasingly difficult to fulfill due to inflation which makes the price of daily needs increase. so that the monthly salary that was originally sufficient becomes insufficient. and well this one condition seems to happen a lot today. And they are forced to take the loan. and they may even forget that if their current condition is very difficult to even make ends meet for them. so when they take out a loan maybe they will be helped at the beginning. but then they will find it even more difficult because after taking a loan their income will be divided into two, namely to pay loan bills and to meet daily needs. and obviously this will make it difficult for them to escape debt bondage. and conditions like this are very prone to making people return to take another loan. we must avoid loans at all costs. because after being involved it is not easy for us to get out of debt bondage.

I'd only ever consider borrowing money to pay my initial debt if the situation was another emergency, e.g. emergency 1 you borrow money, then emergency 2 comes while you're still paying for emergency 1. Ofc if negotiations about trying to extend the duration is possible, then go do so, otherwise, it may be time to increase the number of sources of income you can get. If possible as well, go to the family if needed, at the very least, the time limit for paying them should be much longer compared to banks (but don't pressure them into giving you, if they can help, then they can, if they can't, then just leave it).

Best case scenario is just to never go under debt really, but life ain't that easy for some of us.

This is not healthy to do, you can easily become addicted from how easily you can borrow money from bank or another person. It's really a dangerous cycle when you are trapped inside this cycle, you don't know where to get the money due to how much you take the debts and you might be get in jail because of that situation. I wouldn't recommend that, if you don't think you can't repay the loan then don't bother to even make a request.

I think I can say something about this due to the fact that I myself have collected a few loans when I was paying for a money that was kept in my possession and got stolen from and to hide the fact from others I had to collect loan from my bank and replace the money without anyone noticing. And during that period I felt the urge to go for another loan whenever I'm short of money. So I can say those that have collected loans more than once or twice can get addicted to it and it also gives this feeling of laziness since you can just collect thes loan anytime you want without having to go through any stress at all.

Obviously taking debt to repay debt can be called as a vicious circle especially if the loan you took was for personal purposes not related to construction/ creation of an asset or if your non payment is due to your excess expenses not due to some urgency coming up. I think in such a cases it's a vicious circle but if you genuinely didn't had money that month because of some urgency and had to repay the debt using a loan the. Obviously it isn't a vicious circle we are humans and we do face emergencies.

Yes, there will be a certain time that we really need to ask someone to lend us money because just like people like me or us we don't have the unlimited number of money, everything may come to a limitations, that's why even though I don't want to to lend but I don't have a choice, I really tried another way for me to create money but this pandemic and inflation really sucks.

With conditions like this it makes us even more losers. Regardless of anything, looking for a loan that was used to pay off previous debts, didn't this make interest more and more than before, of course, if something like this continues to be done, it will be like a ticking time bomb that will make it even more difficult for us.
I think as long as we are still able to do without debt then don't ever touch it.

The best thing to do is to try and stay away from debt, which is not that possible or easy, but for one to have that peace of mind is to avoid taking loan to do the wrong thing or solve the wrong problem, taking a lone to invest in a business that is to bring return every now and then is not that bad, but anybody that owes is not always comfortable because all that person will be thinking of is how to pay back the debt he or she is owing. And another mistake one can ever fall into is by taking loan to pay up another loan, that is a very bad or wrong thing to do, because it will just be holding you back financially or let say putting you into more debts.

Everyone has different needs and how to react to them. there are many cases where someone takes out a loan, just to meet their needs. Many also take loans from banks to develop their business. The point is, everyone has a different case. Sometimes, we are faced with an urgent situation and need a loan for some reason. inevitably, as you asked in this thread. Let's just say I took a loan at the bank, because of the urgent circumstances and conditions. at least, I will think of a solution beforehand and how can I pay my installments on time. believe me, debt is nothing fun. we are obliged to pay according to the time specified, and if missed. of course there will be a fine.

But in your case, at least you can negotiate with related parties or banks. you can ask for relief, to postpone payments temporarily or you can ask for relief in terms of payment installments. So, it would be nice if you never take a loan if you are not choking. try not to owe anyone, at least life will be lighter than people who have debt.

Taking out loans and debts from people or entities like bank is surely a little addicting, but not for the reasons you think. In essence, taking out loans aren't that addicting, but that could be a good thing or a bad thing, it just depends on whatever you do with the money. For instance, if you take out loans to make fund your portfolio and increase the levels of your investment, that's good. But I advise that you only do this if you can afford to pay it out, otherwise don't. But if you keep on buying liabilities with your loans, such as cars, strippers, or things that won't hold value in the future, and you maintain this lifestyle and way of thinking, you got a problem on your hands.

I think choosing the right time to take a loan is more important than the loan itself, and that depends on the long view and understanding of the world's economy. Loans have been an important tool for business owners to develop their business, so we can't judge them the worst way, as successful and experienced business owners know how to leverage the loans to increase their wealth. In the same context, I have seen a lot of crypto traders managing to make profits out of nothing by just taking a loan and investing it in a good project during the bull market. However, risk is always involved when it comes to loans, but we can mitigate the risk by making analysis and researches to understand where things are going.  

I wouldn’t exactly say choosing the right time to take a loan is more important than the loan itself. I think the purpose of which the loan was taken out is what’s important.
If a loan is taken out from the bank at the “right time” and is used to go on a spending spree buying irrelevant things and gaining more liabilities. The loan obviously won’t be paid back to the bank at the specified due date even though it was taken out at the right time.

The aim in which the loan was taken out beats all other reasons. Only assets could bring in money. Getting luxury goods aren’t wise cause they’re just more liabilities.
Business owners who take out loans to invest in their businesses are in a better position to pay back the loan and continue to have a successful business.

I've got a friend who used to take loans and continue to invest. He's working in Bank and this gives him the loan for the best interest. Another thing he knows well about how to get loans for lower interest which we people doesn't know. He takes loan and mostly invests on properties. Further used to settle the loans at the shortest selling the property for specific percentage of profit.

There isn't easy way out of this situation, but the individual has to raise his income, earn more money without contracting more debt, so he can finally finish it forever. Finding side hustles is a possibility, but in the worst of the cases I think I would live like a homeless in collective shelters until liquidating the debt, so I could nuke expenses with energy and water bills, and probably rent my house to get more money to pay the loan back, or to not have to pay for the rent, in case the property I lived belonged to the landlord.

I personally know someone who take a loan to pay her existing loan from other bank. At first, it's effective because she can still handle the situation, having a business is a big help for her to repay the loan. But the problem started after she got sick and hospitalized. In the end, she had to sell her house in order to settle all the loans.

For me, there's nothing wrong to take a loan as long as you're responsible and capable to pay it on time. But don't make it a habit and do your best to set yourself free from all these loans. It's better to not have money rather than having it but you acquired as debt.

I am confused. In the beginning, I already stated that I have zero loan/debt and all discussion is based on the loan examples I have seen. How come you explained "But in your case, at least you can negotiate with...." ? It seems like that we are not on the same page but anyway, thanks for your comment.

There are really things that we are not in control of, like needing money for hospitalization, but if we have emergency savings for this, we won't end up taking a loan to get money to pay the bills. There is nothing wrong with it, but if we can prevent having to pay our loans monthly and in a situation where you lose your job, you'll have a hard time paying them back, Saving is the key, but if we are still earning minimum wage and enough for our daily needs, it is still difficult, and we still end up having a loan.

If a loan was taken in consideration of true income of a person and they entered in that circle it can be not a worst situation. Most times first step will be just to step back and calculate income and expenses. Is it possible in theory to start paying and how much, which expenses could be cut. Then make a plan and try to deal with a bank with that plan. Most important is not to panic and try to stay calm, mostly everything can be solved. Even bankruptcy is not the end of the world, lots of people went through this process and improved their life after. Worst decision is to worsen the situation with new and new loans.

If a loan like what you mentioned seems to be only provided by agencies that do not have a legal system, namely online loans, it really doesn't need any collateral except for the identity of the lender who is asked to complete it. in our country also available loans like that. but these online loans are very burdensome for the borrower.

You are a good person. Otherwise - I have met 2 people in my life who would take loan from people ( they are habitual they just do nothing and plan how to find people they can get money out of them) once they would get it they would go buy designer stuff.
These are the people who are mentally sick and have might be victim of inferiority complex. I pray I would never ever meet people with bad intention ever in my life again.

There are the tricks (above) we can use to avoid debt and possibly pay off the debt by opening other debts. even if you owe moneylenders, they will give you extra time so you can pay off your debt, so negotiate as best you can.


even a country has debt to be able to move the wheels of their country's economy, in essence the ability to manage debt is very important, everyone must learn how to manage it because we are getting older, we don't know what urgent needs will befall us, so that's the majority of adults must have debt.

Taking a loan to pay off debts because of ever-increasing interest is what most people do because they have no choice and also because of circumstances, and the most important thing is to be free from ever-increasing interest and maybe why they do it, because of that factor. And the desire to pay it off as soon as possible.
and there are friends of mine who are like that with the reason that paying installments with interest is very troublesome, but if that's the reason and you can pay off new debts so you don't pay late, I think that's the solution. And with the excuse of planning to have a job or side income before doing it so he can pay off his debt on time with the agreed amount, and most importantly after it's paid off don't do it again and he succeeds.
Debt is indeed very troublesome, especially if our income is mediocre, we should not be in debt, especially with debts whose interest increases if it is past the due date. There are many other ways to avoid debt and at this time we have to be good at managing money and also have to have a side job to live in peace.

It is good for one to try as much as he can, not to be indebted, then talk more of when one make it a habit.

If you are to take a loan the reason should be reasonable enough. And before you take the loan also plan how your  to pay when it will be due.

There is one teaching in my religion that discourages people from taking loans; it says, "Borrowers are slaves to the lender." That's the reason I don't take loans; the last time I tried it, it never turned out so well that I had to borrow again for repayment of the previous and also entered into debt again. Someone once told me that taking a loan is the process of spending money that is yet to be earned, and by the time one earns the money, it goes into loan repayment, while there are other needs to settle at that time. 




A friend that I am aware of could not repay his loan because of the interest rate that had accumulated due to too much postponement. He has to sell some of his properties to pay off the loan.

It is good to manage one's budget so as not to go into debt; even if one must be in debt, it should be so small that the person can afford to repay it without being too troubled. Just my opinion though.

today's lifestyle is increasingly consumptive so that it makes anyone want to follow trends that are currently popular, when income does not match expectations, the easiest thing is to get into debt, especially now that online debt offers with easy terms make many trapped in debt, it's natural that many say that taking loan is addicted.

One of my friends has a similar experience as yours. He has been a restaurant onwer for many years and generally made a lof money. The problem is that he took loans to purchase two apartments and one car and has constantly paid monthly installments to the bank. Months ago he asked me for $10,000 to pay his debts in advance because the interest rate on real estate loan is too high and he wanted to apply for another business loan which is with much lower interest rate to help him pay less. I lent him the money. After he received the business loan, he paid me back and used the rest to do business. According to the bank, he is supposed to pay everything off with a total of $100,000 within the next five years. Well, if his restaurant business is going smoothly, the loan will be paid on time but if anything bad happens, he'll be buried in debts. I am not going to judge him cause that's his life. For me, taking loans is never gonna be an option.

Aside from addictions, those who take online loans or get into debt to show their lifestyle in public are the ones who will fail in their future. Because they don't use online loan capital to make their business go forward or open a business to rotate capital so they can make a profit even though they have to keep paying off the loan in installments.

I think it's very unnatural to do because going into debt just to improve your lifestyle is a way to kill yourself before you die. This is something that is not worth emulating because it is very self-defeating and also very unreasonable in my opinion. In addition, their mistake is not being able to stop themselves from following the trend of an excessive lifestyle and being grateful for the income they get so they don't go into debt.

Conditions like this are quite reasonable when indeed the era is getting more advanced, technological developments are increasingly being renewed, so indeed we will become increasingly consumptive regardless of anything.
But when this happens it doesn't mean that our prestige continues to increase over time because basically if we continue to increase this prestige it will only add to your difficulties regardless of anything.
Prestige has always been a major problem, but on the other hand we must also be aware that if prestige actually brings us into trouble, then why continue to force something that is difficult to do.

The sad truth is that, many are making it as if it's needed to be done thanks to social media. Where the lives of everyone have been visible publicly and they're making their friends as their main audience to show off the way they live.
You'll see the broke people that are making lies on their virtual lives but in real life, they've got tons of debts that are needed to get paid and yet, it seems that they can still sleep well at night without thinking about it. The surroundings and modern technology has been affecting our lives and make us want to forget about the truth of life and its simplicity. Those that are affected, even if they don't need to take a loan, it seems that in almost everything, they want it.

A thing that you should really be avoiding as much as you could on where you are trying out to buy something which it is out of your budget or something that would be in line on what you are earning.
You would be putting yourself into a huge debt hole if you are really that too careless when it comes to your decisions.Its not bad to take up some loan but it would be much worth if you do loan up something specially if its attached with investment or other potential things that could benefit you.Its not bad to buy up some wants or from your wishlist sometimes but
making it as your primary considerations or give importance then it would be definitely wrong.

Someone very close to me was in a situation like this. He took a loan and then was using loans to pay loans. He used his salary to pay debts and then took another loan. It got much worst later on when his salary could no longer cover the amount of debt he owed. He was struggling with this for about 5 years, but we close to him didn't know how deep in debt he really was. I mean, we knew he was in debt but we didn't realize it was this bad.
He came out of it eventually, but with a lot of discipline and determination. It was really hard for him. Last month he told me "March would be the first month in the past four years where I will be getting my full salary".

He hated the idea of me taking a loan, no matter how small it was. He kept saying "that's how it starts until you're in too deep'.
What I understood from him is that, when you're accustomed to taking loans, you'll take it at every opportunity you get. Borrowing becomes your first and only option even in situations where it should be your last.

In the end, forcing one's will obviously won't have a good effect on our condition which will make it difficult and more difficult in the end.
Prestige is always there, but in the end we must also be aware that it is this prestige that leads us into an unavoidable abyss.
At present there are many examples of this, with the prestige we have, we will indeed look very good in the eyes of other people, but when we have difficulties in it, prestige will not help in the end.

Prestige is a double edged sword which may harm you when you are in difficult times. I don't believe that people who follow any trend are able to keep pace with their uncontrolable desires. Whatever we own for now or the furture, the first thing we have to bear in mind is not to compare what you have with others. Once you are content with what you have, you'll be happier in life in general.


Your friend is correct about his lesson. I think many people should learn from that. "Borrowing becomes your first and only option even in situations where it should be your last" is the sign of being addicted to taking loans. I have seen many people around me like this and end up in deep debts. The only way to avoid the abyss is to stay far away from it.

It all depends on the circumstances. Taking out a loan can also be a good way to invest in a business opportunity or an investment that would offer long term benefits. There are several risks to consider when taking out a loan from the bank. If you are unable to make your timely payments, you would then default on your loan and that would obviously come with some additional problems.
A loan is only useful when taken out for a good cause. In this case, a good cause is something that would bring in huge profits later on.

I see this as a credit deliberately taken on a company. For example, someone who takes out a motorcycle loan to open a small business, in which later he will repay the motorbike through the profits earned through a business or business. I think it's also good to do as long as you are able to master certain business fields that can help him pay off any loans he takes from a company or bank as you mentioned.

Failure to repay a loan will obviously cause a very serious problem because wherever someone lends money or in whatever form it is, there is always a benchmark for paying it off. So it is better to think several times before making any loan because there is no way to run from paying it off later on.

There are two types of loans
 1. For Good Purposed - like investment, starting a business, or making use of it to make more money
 2. For Unnecessary Things - like party celebrations, hangouts, or what we called 'leisure

It is a need for us to think wisely and do some priorities that could give us a fortune. If taking a loan is for a valid reason like #1, I don't think we shouldn't. As long as we can manage to repay the debts, then there is no problem because it was more regretting if we miss opportunities.

The temptation for ownership today is very easy to get, I often open YouTube on smartphones and most advertisements are offers for online loans and with very easy requirements, only licensing identities or driver Loans on more than 15 online plans and the result is that everything cannot be paid off because of the very high interest.

well, there are many reasons and purposes for someone to decide to take a loan. some are caused by compulsion and some are caused by seeing opportunities to get bigger profits by using bigger capital. so taking out a loan was an option at that time. But yeah everyone should know the risks that will be taken. and must be able to measure our own financial condition. whether we will be able to pay installments every month or not. because it is true that if we fail to pay installments then other problems will arise. and it will worsen the economic condition of the borrower.

A loan is not always bad, if we can plan everything, calculate the budget correctly and see that it will not be difficult to pay it, if our earnings allow us to pay without any problems, then this can be acceptable in many cases.

These can be completely different needs, from buying a home and ending with a car, or a business loan. Many people around the world use loans, but this should all be considered and we should see that repayments are within our reach and represent a much smaller part of our earnings.

But if a person does not have a home, and he takes out a loan to buy a phone and gives a significant part of his earnings for payments, then this will be a very stupid loan. Therefore, you need to be able to distinguish between when it is permissible and when it is not worth doing.

Taking out a loan to go into investments is not advisable. Individuals should only go into Investments with spare money and not money borrowed from the bank. If, due to some stroke of ill luck, you lose out completely on your investments, you would have lost all your money and even worse be in debt to the bank. The bank can be merciless when coming for their money.
It’s also wise to consider how deep your pockets are before investing so you wouldn’t have to rely on the bank for a loan or a bailout

Loans from banks must be deposited monthly to pay off loans with high interest rates, the first loss of the loan must pay interest rates of up to 15-30% of the total loan and every investment is not necessarily profitable for a certain period of time and if the market conditions are worst then you have to hold coins for long term, another solution is better to save monthly from income/salary money every month to invest, the main priority is to invest using reserve money without any connection with other money so we will focus on investing for the long term.

Well first off I would make sure I take most of these replies in this thread with a grain of salt.  As a financial advisor this is the exact type of thing that I deal with on a day to day basis.  Really what it boils down to is making a monthly budget for yourself, and include in a part of it to be a portion that goes towards paying off debt.

Lets say you don't have enough money at the end of the day to pay that debt off, then one thing to consider, if it applies, is taking a loan from your retirement plan, like a 401k.  Often times these loans don't cost the borrrower much more than 50-100 bucks and when they pay it back they're simply paying themselves back, and not some company that loaned it to them plus a bunch of interest tacked on. 

Bottom line, come up with a plan to pay it off and stick to it.  Even if that means no vacations of any sort for a while.

Actually it doesn't really matter if we follow the existing trends, but things like that must be accompanied by conditions where we balance this prestige with the finances we have. The problem is that many of us can't keep up with this but force this as if this has no real impact on them and this is what becomes more difficult.
Even though sometimes all people's thoughts are different about this because there are those who think more about their ego and prestige without caring about their finances, for someone who has further thoughts about the future I think things like this must be thought through carefully about the positive and negative sides.

If you are doing this then you are doing it with no margins which means if you fall ill and cannot work you have dug yourself a hold that you cannot get yourself out of. If you MUST take a loan then you should only borrow an amount that you can afford to take some time to pay off because you can never predict your health. Most loans are for more then a year too so the chances of falling ill or having issues is high. Borrowing money to make a investment in btc that is very volatile is a horrible idea though and I do not think anyone should do that. btc has been down many months and if someone borrowed money to buy it 6 months ago they would be in a world of trouble because they would be 6 months down in payments and they would probably need to start selling things that they own before it gets really bad. 

It can be very challenging, if you are in in a situation where you are unable to pay your loans and debts. I would suggest some steps that might help you break the vicious cycle: First of all access your financial situation and try to figure out the root cause of the problem. Is it due to temraory financial setback or more persistent income issue? Knowing the exact cause can help you addressing the issue more effectively. Prioritize the repayment of those loan with high interest rate & penalties. Repay your debts by cutting unnecessary expenses.

Seek professional help if your situation is very complex, it can provide guidance on managing your debt and creating a plan to become debt free.

That is the reason why loans were created, but then banks decided to give it to people for smaller things as well and it became a trouble. Normally the whole idea of a loan is to grow, and the banks give it to you because they know you will grow and be able to pay them back as well, but because there are some people who use credit cards and smaller loans for liabilities, they became in trouble with more people defaulting as well.

Even if you fail to pay your loan back as a business, they could just take your business and that will be considered your debt paid, but when you do not have much, it's bad for you and also for the banks as well since they won't be getting their money back.

It depend on what kind of investment one is taking loan for, like if it is taking loan to invest in cryptocurrency it is never advisable to take a loan because volatility and how unpredictable the market is. But if it is a loan to invest in a physical business that has no high risk and well profitable one can go ahead to take a loan that he or she can afford to pay back. It just depend on the nature of investment that will determine if it is okay to take loan or not.

Head on don't avoid it.  What I mean by that is to look for more work amd pay that loan off as fast as you can.  The longer you delay it the more of your limited money you have you lose it in interest.  It is a vicious circle but the best advise I ever got was just that, don't avoid it.

from the people around me, they owe it sometimes for the necessities of life but not infrequently also for lifestyle.
debt sometimes becomes an addiction for people in need, but when they are in arrears for some reason they will never be given a loan twice anywhere, whether it's a bank or a non-bank funding company

And since we are here in this community, then the obvious is that the loan being taking out is for bitcoin investments. But still though, for me it's not even cross my mind to take out a loan and then invest on it to bitcoin and or crypto.

How are you going to pay in monthly in the first place? when for sure you are going to invest that money and sleep it for over years in crypto in order to get a huge gain. So it's a bad decision to do that recourse in crypto.

I also don't have this kind of experience but at least I have friends who have been in this vicious circle. Loan money from a bank, when payment is overdue and he doesn't have money, he will loan money from another person or another bank to pay the bill, so he has 2 current bills. How to get away from it? I have 2 suggestions that might be considered:
1. Selling assets, whatever it is. Whether it's land, vehicles, luxury goods or anything that has a high selling value to cover all bills.
2. Loan again from the bank with a higher rate to cover the 2 bills earlier, even though in the end you still have bills but at least only 1 even though with a higher number too.

In as much as personally, I do not buy the idea of taking loans, I'll rather avoid whatever it is, than take a loan.
I understand that certain situations and conditions can push us to take up loans and be in debt but our ability to pay up is what makes us stand out.
If you must take up a loan, it's necessary you take up what you can comfortably pay up in no long time, do not take loans when your means of pay back is uncertained.

I always make sure that life doesn't give me problems that would be heavier than my pockets, sometimes the people we see often as loan takers don't do it on purpose, sometimes life challenges them with problems that are more than they can chew and as result, they don't have any choice than to accept been a borrower. You see health challenges is one of the biggest that can ruin your financial ladder; when your health consumes more than what you earn, you will be left with nothing, trust me.

In other ways, there are these sets of people, they are the very lazy types, they would rather borrow money than work their way out and that's how they move from one lender to another place until when they couldn't borrow more and how to pay back becomes a problem for them which is regarded as an addiction.

The two types of loan taking are true and I agree with you but my topic here was not intended to discuss the cause of taking loans but rather how to deal with the problem and simply stop the vicious circle. The bankers/lenders will never care about the reasons why borrowers need money, instead, they only focus on how to expand the loan businesses and get the payback on time. I feel like you are a kind and honest person but in reality, especially when it comes to finanical issues, kindness does not really work. You are welcomed to look at the issue from a different perspective and share your views.

I think what you are expressing is very appropriate, because often I see around my environment there are very many people who have difficulty paying off loans that they make based on their own desires. Even though they know that before making a loan in any form, what they have to think about first is how to repay it after the loan is taken by them.

That's what some people who take out loans often forget, because they only see how easy it is to take a loan without thinking about how to repay it more easily and not make it difficult later. And what I can't stop thinking about is that there are some people who make loans just to fulfill their lifestyle without making the loan proceeds rotate to get a better profit.

I must say some people are loan addict - yes - they are always on the hunt to get new target.
These people are targeting old aged - these kind of people are abundantly found on matrimonial sites those who would like get money out of them at every cost.
I would always pray to God to keep me away from these kind of scammers 

And there are people who would make you small and make you realize that you are a piece of garbage
The worse of all are those who get money from you and then ignore and give you bad names when you ask for the loan you have given them

There are really people who'd apply for loan 'til their salary or monthly income gets occupied 'coz for them, they won't have a burden paying those things since it would be charged smaller than actually purchase it on one time purchase. That's indeed true but will never be financially advised. An individual should be as well futuristic with their funds such that there will be times wherein you'd need a money to pay what's important. And this is where debt would occur. The idea here is to have somewhat of savings or insurance in order to cover you up in a long run and to avoid being in debt only because you prioritize things which are not considered a necessity.

I totally agree.  I am also a borrower to buy a house, in fact, I am personally very afraid of debts, if not in a dilemma, I would not borrow.  I see some people, they easily borrow to play cards.  Maybe for them, the conditions and circumstances, means and equipment to repay the debt are very normal.  They don't even hesitate, don't think much, don't feel the debt is a pressure.  and they are willing to continue to borrow when the debt is repaid, they will borrow anyone when needed… ns can also be an addiction

These people are everywhere. I remember once having dinner with a bunch of fiends. Acutally, most of them were not my friends and only the host was. The dinner banquet was for the celebration of my friend's newly born son. Anyway, we had sit arond the table and everyone began to talk after a few drinks. To my suprise, half of them were bragging about how much money they could lend from banks and/or lending institutions and how lavish their lifestyle was. I realized immediately that I was not one of them so I kept quiet. Many of them had dozens of credit cards to cover each other but the debt grew bigger and bigger like a snowball. They did not feel bad but excited, like being addicted to drugs. I was becoming more aware of who I am after that dinner. Step away from loan/debt and never be an addict !

Let me start from the subject or topic. I may say yes from the experience of my two friends one male and another female. The female took loan from me since last year and she has not paid it yet she was disturbing me to give her another loan again and she has taken from others too and she is still seeking to collect more. Make is another addicted one. He is always on loan. So people can be addicted to loan.
Then coming to the content of the OP. Banks only give loan with collateral so that if you could not pay the loan at the stipulated time they would claim the property. So that is your own concerned. And for me, personally I don't like loan, in fact I hate loan.

Its their mindset in what they are doing they prefer to be in debt. There are really people are doing this just to show off and also they cant see any problem of it as they can still able to pay their debts and can sustain their lavish life which is true but they are wasting their money and time about it since for sure even they are able to pay it they will regret it later on and thinking that the money they spend on useless things should be like bought appliances or items that you will needed in the future as well as investing to business.

If you are going to take a loan then make sure you plan to way way ahead of the time. You must note down everything from expenditures, savings, what goes into EMI and what is leftover. You will have to break it down in your accounting to make sure you dont get stuck into that vicious cycle at all.

Like you will have to start with these:
1) Whether you are a business person?
If yes, then what is your current valuation, profits, income and will have to take employee salaries, business expenses, cost to company in consideration. Then after calculating exact EMI's and loan tenure you can decide whether it is feasible for you to pay or not. OR at least you can have exact figure up to which you can pay stress free and take only that much amount of loan.

2) In case of employee person you will anyways get the loan based on your salary income. That will have recalculated figures yet you will have to see what expenses your house is making. Sometimes there are always unwanted expenses in the house which your bank will never know about. So be careful while taking the loan and understanding what amount is being sanctioned to you.

I have been there. And I have also taken parallel loan amount. This means I over took the loan above my salary but it was emergency situation and I managed to repay my loans in very short period of time so I never had problem. But this happened because I did it calmly and planned everything properly.

There are people who can continue taking loans and even not yet been done paying they will try to seek for another,
I know some people who have this attitude personally.

I don't deal with them after letting them barrow some amount and not pay me back, I'll let them but
never to allow them to barrow again so it won't added to their debt.

Well, one thing am so sure of is that, I can never borrow money that I can't pay back, I've never borrowed money from the bank, but I've borrowed money from family and friends, and some times, even on this forum, though during the time I owed some of this loans, like the last one I experienced, I ran into problems which tried to make me not to be able to repay the loan, but I still fought my way through and repaid it all.
One mistake I've always avoided is, borrowing to repay another loan, thats a very bad habit and shouldn't be encouraged anywhere.

Borrowing, as you said, will of course be different, because borrowing to buy for interests or needs that are really needed is of course very wise to do, because there is no other alternative. but it is very wise to borrow from a bank whose credibility is very well tested, not to institutions that are easy, but the interest is high and it will be misleading later.
but borrowing for dishonorable actions such as playing gambling is definitely not recommended, because what makes addiction is not just borrowing but gambling which actually drags the addiction.

Borrowing and borrowing is a very common thing as long as we know that the reasonable limit that we are able to pay is legal.  What should not be done when borrowing is exceeding the specified limit because when borrowing money from a bank or any institution, the interest we pay increases, which makes it difficult for us to pay it.  as much as possible we should be able to manage it well and when borrowing we must have income that must be paid for the loan.

I don't really see it as addiction but sometimes it can been laziness, not willing to take fully responsibility of life. I know things are difficult this time but that doesn't mean one needs to sustain his/her self with loan. Instead of looking for where to take loan why not look for something that will bring a penny and adjust the way of spending money just to meet up. It is only someone who is not willing yo struggle and take responsibility that will be comfortable to take loan with having fear of stress on how to pay back.

Indeed, it is. Firstly, no one should take loan if they are not in any extreme situation. But if you are in a debt already, then there are some way you can get out of it. But it will be a long journey for sure. Taking from one and paying the other creates a mess. But if it's already done, then you should focus on the highest interest loan first. The more you drag it, the more you'll have to pay. So make a list of everything and choose which one you need to clear first. Then create a budget on how you are going to spend and pay back depending on your budget. Also, if you're struggling with debt, there are resources available to help you. Consider seeking the advice of a financial counselor or debt management professional, who can help you come up with a plan to get you back on the track.
And I am saying this again. Don't rush, it will take time, but you will eventually get out of it some day. And before taking any loans, consider discussing the payback amount which you can afford.

I would not consider getting loan unless it was an urgent situation. I won't even consider installments when buying anything I want because this will just be a burden that I have to bear each payment period. Loan can help in times of need, but I'm not at all sure it would become an addiction were it not for some utterly dire need.

There are those who can make loan to build their businesses, there are those who succeed and there are also those who fail. So there is no dependence on making loans of any amount, but usually banks can offer more loans if you are a customer who is not in trouble and is smooth enough to pay off the loan before maturity. The best advice is, don't make loan if you don't need the money urgently, you should have better options than making a loan like selling some valuable assets or something.

First never take a loan you can't pay back within a stipulated time secondly  the fastest way to pay back debts is to start making instalments as early as possible that way it will reduce the borden of paying bulk money and also help repay back those loans before the due date.

The most awkward loan is when it is above your income and the said loan isn't meant for investment of any kind. Loans are sweet when they are been taken but becomes a trap when it becomes difficult to pay back. Loans of this nature will either result in losing properties staked as collateral or taking up more loans to offset outstanding loans.

It is not very good if after making a loan the money is not used for purposes that can generate income more effectively. And what's even worse is deceiving people who have given loans with a thousand illogical reasons and starting to disappear when it's due to pay. Yes, such addicts really deserve to be shunned and there is no reason whatsoever to be close to such people.

It really hurts when it happens to someone who has provided assistance and I can't imagine it because it has never happened to me and wish I had never had to deal with loan issues in any way with anyone. Besides, I very rarely give any loans to other people because I myself never want to take loans from other people, but if there are people who have been helped sincerely but instead badmouth the maid. It really hurts to imagine.

Not really addictive and not a kind of vicious cycle that others are expecting because that depends on the reason why you are taking a loan as that will just mean that you have to pay for it for a matter of time including its interest. So, that just means that you have to think clearly before doing so because that kind of act cannot be undone even if you wanted to especially if you're just taking a lone just to feed your wants and not the needs.

Also, I've learned as well that loans are actually helpful if you only know how to use it because the government cannot charge a tax on it. Interests are much cheaper than income tax, but I guess that depends on a certain country. Simply to say, it's a tool.

Taking a loan from any financial institution is never an addiction. It only becomes an addiction when you take the loan and don't have the means to pay it back, so you go to another financial institution to take another loan. It is always advisable to take a loan from a financial institution and invest. As it will help to recoup the initial capital, which is the loan you took. I, for example, am usually scared of taking out a loan. Not because I have never been in a situation where I was compelled to take a loan, but because paying back a loan is usually a difficult thing to do. So I always devise a means of getting out of any situation that will require me to get a loan because of the fear of not paying it back when it's due. Moreover, taking out a loan frequently leads to its addiction. Loans help solve emergency problems such as hospital bills, school fees, house rents, and so on. So it shouldn't be an addiction.

And maybe it depends on the purpose of the loan, if it is for the good thing or bad thing. We all know that there is a good debt right? but if he want to take loan just to expense his unmanageable expenses, addiction and some other vices then it could be a bad thing. He will soon can get another addiction and now it will be in too much spending and getting frequent loans without thinking to pay it.

The definition of debt is good for emergency purposes or for urgent needs, if taking a loan to cover other loans is not recommended unless the lender asks to pay off the loan before the payment agreement period due to an urgent need, but if you play with loan problems it will harm yourself because you have to pay interest from loans and finally he will not be trusted anymore even if he asks for another loan when he is destitute.

You are really making yourself getting drowned because of the interest on which you are trying out to clear up a debt via a debt and this is where these lending firms or businesses flourish out because people do continue up this kind of behavior.I wont deny that im really guilty of this on which i have tested out on repaying a loan to clear up a loan because im on a  situation on which i dont really have any choice but to take up that step to solve out some problems.This is where you would really be realizing on how important on having a savings could be because you would really be that prepared in case if there are emergencies.If you dont have something then you would really be ending up on getting loans as your last resort which it isnt something that could be avoided when you are already that desperate.

Exactly. Too many people believe that taking loans is nothing serious and it will be easy to pay back until one day, they find everything opposite. By the due date you can't pay off the loans and having no time and other resources leave them only one option: start another loan with high interests to pay back the old one. That's the vicious circle officially starts. I guess the true lesson they can learn from is that actions have consequences and never underestimate the small problem that you think you can fix. Over the course of life, we all need to develop a few good habits and this is one of them.

Your story surprised me too, I have never seen anyone brag when they have huge loans. It can be said that borrowing money can be the last solution when we have no other choice, the borrowers are the ones who are having the most difficulty, they have nothing to be proud of but to close themselves and keep quiet. I also had to take out a loan because my business failed and it was the hardest and most embarrassing time of my life because I had to save money to pay off the debt. Nothing to brag about or boast about.

Most people say that taking a loan is easy, but paying it back is difficult. That is why people who are going to have a loan to pay off another loan wouldn't be successful in life because they are very busy paying back their multiple loans and couldn't save at all. That is why it is better to strategize first before you take a loan. Can you pay it back? Can you do the installment without having difficulties in buying your needs, and what's the purpose of the loan? If it is a useless thing, then don't do it.

Most of the people take loans from banks for their business purposes or to build houses and banks give loans to those people who have sufficient ability to repay the loan and have a fixed source of income. So even if it is difficult for the borrower to repay those loans, he tries to repay them on time. If the borrower is not able to repay the bank loan on time, he borrows money through some other channel and repays the bank loan and in the meantime he gets some more time to repay the loan, but if the borrower does not follow these strategies fully, then  Instead he has to face a great danger. In that case, he often has to sell a necessary item to repay the debt, in which case many people sell their house as well.

This kind of cycle must be avoided, we cannot live by closing and digging holes. There have been many stories that I have heard about someone who lives this way, and it is not uncommon for them to end their life because they can no longer pay their debts every month. This is a story that should be a lesson for those of us who are not trapped in a circle like this.
If we are already trapped, then the choice is to try as hard as possible not to open new loans, and if we can negotiate so that we can repay them according to our ability.

Sounds very familiar. One of my friend just literally done this to survive financially, I never heard of him since he last approached me to borrow from me, which I refuse coz I knew he's really deep into his debt and paying me back may take time.
I can say, it's not addictive, but it will tie your hand in it because you are trapped into that situation and that cycle will go on unless you decide to make changes. First step should always be, cutting your unnecessary expenses.

yeah that's right. However, there are still many people who underestimate debt. and the real fact for those who already have debt is that they are very difficult when they want to stop. they are not addicted. but their circumstances and conditions did force them not to be separated from debt. then the only way is to avoid getting into this vicious circle. avoid a loan as long as we can avoid it. it's better to sell the valuables we have than to take out a loan. and avoid wishful thinking to develop a business from a loan. because it is very rare to be successful with capital obtained from a loan.

If we are to go by the rate of individuals needs in life then I think almost everyone will want to opt in for taking loan, but things were not as we expect sometimes, most people taking loan and finding it difficult to make refundment would have exercise a little more patience before taking it by adequately planning and taking time to invest something of value unto themselves which may later turn to a sellable idea that could bring food to their table, rather than taking loan that will shark up their neck.

Business or housing needs can be met with a bank loan. However, borrowing entails obligations. According to the comments, borrowers must have a stable income and be able to repay the loan on time. However, unexpected events may make it difficult for the customer to repay the loan. I wonder if taking out another loan is the only option to reduce debt payments stress. If a borrower is having problems repaying their debt, they should be bold and seek for help. They could lose their home or possessions if they ignore the issue. Being honest and working with the bank to find a solution is ideal.

when someone has fallen into debt it is difficult to get away from it, especially when borrowing from a bank, online loan or any agency in lending and borrowing and does not have sufficient ability to cover bills, this is a complicated step, you should not do it when your ability is not adequate, but what I know from the bank, in particular, it does not allow making loans if a person's establishment does not meet the criteria for a separate bank.

But letting go of the habit of borrowing, of course someone will look for other parties to cover one party's first loan, I think this is difficult to straighten out when many parties are involved in terms of debt / loans that must be paid immediately, it's better not to make loans when the ability will not be able to cover the bill. I think this is a bad habit when you are involved in a loan from any party.

And that's why it is so important to teach basic economy at school. And even household economy, because, like you say, many have no idea how to draw up a family or personal budget. If they don't know themselves they hardly can teach their children and a problem will go further through generations. Taking a new loan to repay an old loan they can't afford usually shows that the one doing so has some problems with basic economy but to get yourself into a debt trap is a really bad idea. And yes, we can see lots of people doing so, unfortunately.

What you are expressing, I think, is very appropriate because if someone borrows money to cover other loans he has taken from different people, then the problem will never be finished in his life and that is not a very good option to do. except as you said, where someone has to immediately pay off all of his old loans because he has been asked by the old borrower. But if it weren't for that, I don't think it would be right to make a new loan to cover his old one

Some people are in habit of taking loan. They are used to it and they are so selfish to put other in trouble for their own sake.
I know some people who would find victim to get loan from them and then blackmail them

I have a horrible experience on granting someone with some loan and ending up on getting stressed due to continuing on asking for them to repay their loan but ending up where those people do get angry or even
trying out to blackmail or something.It is really just that sad that there are people who are really like that where they are really that degrading up themselves just because they dont really like to pay up those loans.
It is really that a bad habit on taking up some loan just for you to pay up the other one on which you are really that making yourself that getting on huge trouble because of debt.
This is why as much as possible you should really allocate some amounts for savings for you to save up yourself on times of financial trouble.

Well, the reality is that it was too easy to get a loan from people but it was to repay it on time. The idea of taking a loan in order to pay another loan is not really the best thing to do as it only multiplies your debts and later on, it totally compromised our finances and it reaches the point that we can't pay them back as it was promised. It was hard to find a solution if we are just reliant on single sources of income. In this case, we need to look for a side hustle otherwise, we can't get out of debt anymore.

People like that are very annoying because I usually call people like that are loan sharks who are deliberately looking for people to offer loans for several years and make installment arrangements every month with the interest they have determined. Even though in this case there are some people who are used to taking loans, in the end they will also be very bored with the loan installments that they always have to pay every month.

I also think like that because when someone already has multiple debts in his life, of course it will be very difficult for him to get out of the problem even if he tries to solve them one by one at a time. After all, more time will have to be spent on this and he will never find other developments within himself except to only think about paying off existing debts.

He will be stuck from paying and that will be his focus. I mean, for people who know how to pay their debts, they will keep on trying to pay and they will end up adding additional loans when emergency things happened.

It's really not a good idea to keep asking for loans, better to b contented with what you have and not
to aim for something that you can't afford. Be practical and wise to save up spare and limit your finances.

In my opinion taking loan for making more money by using it is wrong idea because if you didn't make profit then how your will return this loan. There are lots of people who takes loan for the purpose of trading so instead of multiplying they lost their own money too so I will guess that never take loan for such purposes as there is no guarantee about its success or decline.

People can addicted with loan taking from another person but they cannot addicted with the loan taking from the bank because bank save the history and they never provides loan again until the costumers return the pervious one.

If you need money and you have taken loan then instead of putting this money into new or other coins which have no future just put it in Bitcoin and leave for some years so in this way you will be able to return loan and also your financial system will be okay after getting benefit from bitcoin when market rises.

I have a friend who had to separate from his wife because of a loan. I will tell you a little, he (my friend) did not know that his wife was secretly borrowing from one of the cooperatives that provided loans, even though he was actually fine financially, even if he did not borrow, his daily needs could still be met. Now I thought what would make someone take out a loan when he doesn't have to do that? I was wondering whether this has something to do with a person's character (maybe my thoughts are too far). So what do you think about this kind of thing, like I said that actually he's fine even more than enough without having to borrow.

Honestly taking loan and addiction has got nothing to do with each other. It’s simple, if you want take the loan then you take it based on your income and repay it. Loan is blessings for those who are not born with silver spoon in their hands for example a guy like me!

I have taken loans 2-3 times but that doesn’t mean I am addicted to it. I had loan because I had some adjustments with my funding for particular stuff. I did repay 2 of them and again took another when we had some renovation to be done and required some extra cash for disbursal. I believe if you use loan system properly then it can help you with your life at certain phases.

Yes it would be a very self-defeating addiction if someone foolishly took out enough loans to run a business in any category. taking a loan is not a good thing but it depends on how the needs that come to his life.

At my place, many stories have occurred from various people who took loans online, where the interest rates were high, which in the end prevented them from making payments. i really stay away from loan rates for my life even though it is in a crisis which is very important because in that it can lead to severe addiction whenever we face difficult situations in the future.

maybe one good side is saving early for things to come. well, last season during the Covid 19 pandemic, for example, at that time there were many of them out there who were having financial difficulties because of the difficult economic turnaround at that time, so if we have savings that have been saved from a long, that's what we can use for  face such a crisis.

I personally take loans for two things, personal growth and survival. Personal growth is when I wanted to expand my portfolio, so instead of wasting my money away, I take out loans from banks or whatnot with my investments set as my collateral, and then pay them with eventually. At times I go beyond my budget and are in short of cash, I take out loans from friends and family which I immediately pay as soon as I get a hold of the funds. Thus far I don't think I'm addicted per se but with investments it's become a habit of mine, and as I say even though it's a loan I could pretty much afford paying it tenfold if ever, without ever going under, so I'm good.

This your explanation looks more critical to me and I don't really think I have evee been in this show before. I have onced borrowed money from friends even from companies and I make sure that I paid back before the due time. I don't like owing people because I see it has a bad omen for me to owe people. Even though I don't have the money to pay, I will always feel guilty of myself and try as much to make sure I paid back and soon as possible. Borrowing is not the best for us but we can do that to solve little problems we  might have that need urgent attention.

Well, it is definitely a personality issue with your friend's wife that makse her to borrow money even when she does not really need to do so. This reminds me of a fictional person from the classic American drama Breaking Bad, in which Marie ( Walter White's sister in-law) always loves shoplifting even she got caught up many times. Her husband, Hank, is an DEA agent and surely their income is stable and all daily needs can be met. In reality, I have also seen people like them who are always in love with someting weird or abnormal.

This is also what I feel, even though it is pretty normal for us to take out loans or borrow money as we need it in our family to purchase things and food. Mostly if you have a family, your salary is intended to cover food and basic needs, and you don't have spare money to buy things like appliances. That is why we need to borrow or take a loan (this mostly applies to people like us who just have enough salary). Though still, it is better to save, even if it is a small amount.

we will realize this when the problem has come, before when there was an opportunity to take a loan, of course there is confidence in ourselves that it is not difficult to be able to pay it, but it is just a whisper of the devil for us to fall into a vicious circle that cannot be resolved.
there is nothing to do except pay it and walk away from any kind of borrowing or debt.

I've been in debt with low interest to high interest, at first I thought I could get through it but what happened didn't match my expectations, so I decided to sell a little of my assets / savings to cover it all without thinking about the losses I suffered, for me it's not a loss only about money but the problem that keeps popping up in the head is a problem or a loss for yourself.
until finally, until now I don't want to have anything to do with borrowing or interest-bearing debt.

And who will be paying off a debt during these some years (and usually there some years are all the time you can take a loan for) when you wait until bitcoin will go up? What if during all several years you need to pay off bitcoin rates will be lower than you bought? You will be repaying your debt and see that you could have more just buying with those money all the time? Of course this situation is not what will definitely happen but it could be so. And that's one of a main reasons why a loan for investing is a bad idea.

nowadays there are indeed very many money lending services and many people are involved in the problem so a lot of drama occurs you borrowers and the service party, there is even a fight in both of you because it does not go according to the agreement that has been set, for me to solve the problem usually directly tell them the party concerned because they cannot pay on time and usually they always understand and give time to pay off  and they also know that there are certain problems that happen suddenly and our financial problems are constrained.

Taking loans and debts might be a tradition. Take a look on the US. Credit cards are used more often than debit cards, credit scores, credit history. I would not say that Americans are addicted to loans. I would say that it is dependable from the place you are. In poor countries loans are the only way to survive. In other places loans is an indicator of trust. I think only few people take loans due to addiction. Probably such people are simply shopaholics.

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Taking loan is not a bad option. But it becomes an addiction when you make it a habit. For instance, someone may want to invest in business and dont have money to invest. He can decide to take a loan to invest in a business which will be profitable and viable. I would advice if anyone want to take a loan it should be for investment because it will be very difficult to re-pay a loan that is not profiting and that may cause you to take another loan. But if its for investment, you will be quit assured that even if you dont get the profit as at the time of paying back the loan, you are sure of the initial capital.
So, taking loan is not an addiction.

A loan is not a problem. This is one of the thing Kiyosaki got right: There is bad debt and good debt. Debt that makes you poor and debt that makes you rich. I will explain: You take a debt to buy fancy clothes, you wear them for a little while, your debt is there to pay. Bad idea. You buy a basic car to go to work, you finance it and pay with the salaries. Good idea. You finance a property at 2%, refurb and sell it and repay, earning 30% in the process. Very good debt.

Apart from tradition, the times are also very influential, let's just compare it with the past now, there are many lenders, they even dare to provide loans without collateral. Around me, there are even those who offer door-to-door loans. Maybe people who don't need it won't take a loan, but if there are people who happen to be in need of money at this point, they won't think long about accepting the loan offer. Now we can see the various types of loans.

You are right, you can apply for a loan based on the purpose of the loan as potentially profitable capital for the long term, but if you need capital for the property business then it requires very large capital and is not recommended for loans because you have to pay high interest costs, you must be able to achieve income. higher than the loan fee every month, so loans are still at high risk even though you have experience in the property business because we don't know if we can build a property business to achieve the targeted profit.

Nowadays many people think it is easy to get into debt, even when they have completed 1 debt and then get a debt offer with a greater value, they don't think anymore and immediately take the opportunity, when bad things happen, for example, when they get a sudden need, they can't pay the installments debt so that debt becomes a serious problem.

In my opinion, debt will only solve the problem for a moment, but big problems will arise in the future if we are not able to manage finances properly. There are quite a lot of people I know who are in debt but have had a tremendous impact on their lives.

It is undeniable that everyone, when they really need something that is considered important to expand their business, will definitely apply for a loan at the bank and I think that is normal in the business world.

However, what makes debt a problem is when a person is unable to control his personal needs, for example taking credit at a bank only for consumptive purposes, meaning that he is willing to take on debt just to fulfill a desire, not a need. And of course you can't imagine how to cover the installments with just one source of income, of course it's very burdensome.

The only reason that makes it difficult for people to manage their finances is to take loans, because people will be involved in new problems after taking these loans, while those who provide loans will do many ways to influence people with the services they offer.

Taking a loan is tantamount to making a problem, if it is used for capital it is also not certain that the business we are in will grow, while we have to deposit monthly expenses every month, regardless of whether our business is growing or not.

At this point taking a loan is not the right step because the community's economic condition is not yet stable, so that it will be increasingly difficult for the community to make a decision to get out of the loan trap.. For people with low incomes, taking loans is not for business needs, but rather for fulfilling a lifestyle to buy some items, at least this is what I found in some of the closest neighborhoods and they are still putting themselves at risk. I think managing finances well is very difficult, but taking out a loan is also not the best solution for some of the people we mean.

For me, a loan is a debt and debt is indeed a problem that must be repaid according to existing procedures, so making a loan for something in life is something that will indeed put pressure on ourselves. So it would be better if we could still avoid a loan in life, because usually a business built with borrowed money will take a long time to develop. This is caused by business owners who have to provide money to cover debts at the end of the month so that business development will appear slower than those who use their own money that is not tied to a loan.

Those whose income levels are still medium or low will be very poor in paying off loans at this time if their income levels do not increase. Because taking a loan to show a luxurious lifestyle is a mistake, but if they take a loan to grow their business or expand their business network to several different places, I don't think that's wrong as long as their business is more advanced and known by many people. But if you take a loan just to enjoy it without turning it into a business, that is very inappropriate because they will always find it difficult in their lives due to being in debt.

Here is an example that is of great value. About two months ago, in the city where I live, a middle aged man was reported to rob a bank nearby my workplace. The police got called and went to the scene quite soon, like within five minutes. It was said that the man was holding a gun so snipers were also prepared to shoot. Unfortunately the negotiation did not go well so the man was shot dead on scene. After that, we heard about the causes of the criminal act. That man had three loans from that bank for business use but due to the unexpected economic conditions, no money was made and that man suffered a severe loss. He was initially going to the bank for a late pay-off talk but that was not successful. Out of enormous pressure from the loans, he just used a gun or knife to threaten a manager. Then that came the story at the beginning. He may be an exception as a murderer in his situation but he is definitely one of the many people who have the same loan problems. What about them ? A loan or debt for business is a good use ? I don't buy it.

What a very sad story. and this story should be a lesson for all of us to avoid a loan. whether for capital or for other things. unless you are in a position where you have no choice but to borrow. but as much as possible we should avoid it. and the stories of people who are forced to commit crimes we have heard a lot and sometimes behind these crimes it turns out to be due to pressure to pay debts that are due. and the person has no other source of money. so that someone can be reckless to act beyond common sense.

Personally I don't like taking a loan because I knew the multiple effect of defaulting can cause and If it's becomes necessary to take loan I wouldn't obtain huge sum of money. I believe that was the case of the person mentioned above probably his inability to pay on time resulted to massive accruable interest on his loan whose repayment had become a burden, infact I had read a story of another loan defaulter who committed suicide after obtaining a loan from multiple sources and was unable to pay the loan after a failed investment and everything went wrong consequently all the invested funds vanished into thin air

Of course, taking a loan is not a solution, instead it creates new problems. How many people ended their lives because they had a loan they couldn't repay? a huge amount. It comes back to ourselves, if we can think long and hard about what will happen in the future with the risk of the loans we take, then we will avoid as much as possible so that we never take loans occasionally. And if we have such thoughts, then we will be stuck in the wrong circle. before doing something we have to think about it carefully.

It is in many steps from taking a rash loan. Because even if you took it you can try to restructure it with a help of a bank. Even if it didn't help you can go through bankruptcy proceedings, lots of people did so and started a better life after that. Even if it didn't work we can remind ourselves that lots of people live with much less than we have and are still happy. So its not a time for suicide at any time, especially because of any money problems! Of course we should not make even a first step taking a reckless loan but even if we did so everything can be okay if we stop making next silly things at any time.

In my country there are currently more than many online loan options, even according to financial expert analysis there are around 780 online loans, the majority of whom have no certification from the Finance Council, some time ago there was someone who borrowed more at 50 online loans and total debt of around $ 175K, Surely this is a trend today because of the ease of debt makes a person a lazy and debt addict.

No one likes to borrow money, but because there is no other way, a lot of people have to borrow money, or things will get worse. I have also borrowed money before because my business failed, it was a terrible time of my life, interest rate pressure, daily expenses. Luckily, I paid off that debt last year and I swore to myself to never take out a loan again.

As long as we are able then it is better not to do that. Even though in the end the last option is to borrow, I think that can still be done as long as you don't get too carried away. but the current conditions, mainly reflecting on some who have already done it, when we borrow once and manage to pay it off, the conditions will continue to be carried out because the assumption can still be returned and even with an even bigger loan. Wasn't so naive I used to do that and in the end it just got to be a burden and I stopped doing it.

Taking a loan/debt make them addicted because they can't control their emotion to spend the money, many people take debt for buying something useless in their life although not everyone like that. I already see many people doing something like that borrowing from other channels, so it's better if we take a loan/debt we should know our capability to pay it back, and saving money is better rather than taking a loan.

The problem lies in monthly income when someone is forced to take a loan, how is it possible to pay off monthly contributions while the income earned is not stable every month, while monthly contributions are no exception and must be deposited every month. Especially for those who take loans only to meet their needs and lifestyle, this is much worse and very confusing mindset.

In contrast to people who take loans who already have a business that is already running, they take loans as a form of business expansion and additional capital, so the decision to take a loan must have careful consideration and at least if something bad happens they have considerations and choices as steps to be taken to get out of the worst thing.

That's why every decision you make must have planning, both in the long and short term. Taking a loan for business purposes is not a problem, as long as you have a plan for the problems that will arise from the loan. Calculate the ratio of business profits to long-term prospects and after that, just make a calculation of the loan needs, if you have a match and the risk is not too big, then make a decision to take a loan or not.

Taking a loan for a business must also consider a number of basic things, so as not to get a risk for the borrower or the business being managed, because this relates to business continuity and the ability to pay off loans. Many business actors are involved in loans from banks and most have the ability to minimize risk.

There are countries that are addicted of taking loans and there economy is entirely dependent on loans from IMF and other donor bodies. In the long run such loans are disastrous for your economy and eventually such economies collapse. The long term solution lies in decreasing your imports and increasing exports and that is only possible when we cut down our demand for luxury imported items. Loans are just a temporary pain killer tablet and not the permanent solution.

Yup, such an attitude not to have a good control when spending money pushes people to take loans, and with such kind of overspending they will be forced to continue asking for more to the point that they are unable to pay for it.

If you don't have good limitations in how you will use those loan money, you'll see yourself to continue asking
for additional loans and it put you in a place where you will ask for more.

I know people who like taking loans and do so all the time. It is about their style of life. And until they do it with full understanding they have no problems with that. I prefer never taking any loans and for me other style of life is comfortable, but it doesn't mean everyone is the same. A friend of friends tool multiple loans until banks stopped giving them to him. Then he tried to avoid communicating with banks, after that he lost cases in courts, then went through bankruptcy. I'd become mad somewhere in the middle of that and he is still okay with all that! So what is possible for him is hardly possible for me, because I'll even hardly start recklessly take loans as he done.

but there is not a single country that does not have debt, and the more advanced the country is, the more debt it has. what makes the difference is the level of debt security to a country. if GDP meets the requirements for taking debt safely I don't think it will be a problem. on the other hand the designation of debt that needs to be questioned. if later the debt has economic value, and will have a greater effect in the future, then debt can be taken into consideration for the development of a country, for example for infrastructure purposes that support the wheels of a country's economy

Indeed, there are many ways to improve and pay off debts and live a better life in the future. But not everyone can get through it well, because their mentality will be disturbed if they are in a state like this. They choose to end their lives because maybe they can't stand the pressure anymore and they will surely be embarrassed when many come to their house to collect debts. Money is a sensitive thing in life, because it can happen very fatal things.

I have witnessed this incident from my neighbor, he is a person who always borrows money, not even just online loans or banks, but many people have borrowed money to cover debts that he could not pay before, and I think this belongs to the category of people who do not pay debts, yes, even though there are many solutions but he can't do that because his mentality and mindset due to debt addiction causes his mindset to be short, and for this incident many parties are harmed and his family has to bear the burden he left behind, while those who have debt on this day who knows where he is.

I'm actually very afraid of loans because I'm very afraid of debt.  For this situation, I think in any other way or form it is advisable to contact the agreement/interaction negotiation with the borrowing bank or the borrower about your situation.  If there is cooperation should be presented in writing signed for the delay in loan repayment accepted by the creditor.  Before thinking about rotating money, add another place to offset this debt.  Then the cycle goes on and on, which is certainly not a viable and efficient solution.
Next, if it is not possible to negotiate with the borrower's bank/creditor, contact his/her acquaintances/relatives/family friends to help and explain to them in detail.  It will be better than borrowing many other channels just to settle one debt.  On the contrary, it is really difficult to get out of debt

A very common question that might produce answers depends on their respective countries. The loan will face two things, namely agreements and rules applied by the government in a country. The agreement is related between the borrower and the owner of the company, while the rules are something that is applied by the government related to consumers and the company owner. When a person is unable to pay the loan, of course it has violated the agreement adopted by the borrower company. But the government also applies rules to protect consumers from violence in billing, so that company owners cannot collect arbitrarily against consumers. Maybe in this case benefit the consumer.

But other things can also be detrimental to consumers when delays in paying, because the company or capital owner applies the rules of late interest. They even calculated the delay interest in a matter of days. A company applies the rules or interest agreements for late 0.5% of total installments. If the installments $ 100 in a month, if one month is late, of course the interest from a fine of $ 15 and added monthly installments. But if it is late for a few months, of course guaranteed goods will be confiscated by the owner of the company or the owner of the capital.

My advice, if someone needs money and there is still another way to get capital, then avoid such loans.

   I think there are many loan addicts, I met someone who loaned me 150$ before because he got my trust I allowed him to lend me this amount, then he only partially loaned me about 30$ once after that nothing happened after that, it took a few months and I went to his house and found out that he had moved. I asked his neighbors if anyone knew where he had moved to. I found out that he had a habit and a disease of borrowing and hiding. he owed it.

   But if you pay well, there is nothing wrong with borrowing repeatedly in my opinion, because you owe responsibly to what you borrow, and you value the creditor's trust.

Taking a loan goes beyond a mere addiction at my side. I could remember when I used to take loans, hardly could I save up as about 90% of what I earned did go for repayment every week. My advice to everyone is for investors to avoid loan taking as it ruins the investment.

What I'm confused about in your story is about who borrowed it, because when I read in the first sentence you seemed to say it was the person who gave you the loan. But after I read everything, it turns out that you are talking about someone who, after lending some money, then moves where it is a bad habit that he has done repeatedly.

But you also need to know that people like that usually get fed up with constantly moving where they live after lending money to other people, and what I wonder is why you can immediately trust people who you don't even know what their true nature is. For me debt is the initial trigger for hostility if someone does not pay it on time and debt can also break someone's good relationship with his friend even though they have been friends for a long time.

Borrowing repeatedly is not a problem, but what is a problem here is whether the person who borrows can be responsible repeatedly? Because you will not know what is in his heart after borrowing money from you and the responsibility for timely payments, not everyone has it when it comes to money.

And that's why I remind in this topic that everything can be solved. Because if someone will come to this topic with suicidal thoughts to learn about how to overcome their problem they should know that there is light at the end of the tunnel. A lot of people went through it and started a better life, no money problems are as important as our lives. It is better not to make these problems be realized because a problem is anyway a problem, but any problem with money is solvable.

The impact of debt is indeed very bad and will create psychological pressure if you are not smart in managing your finances and the tempo for solving them. But if someone has been trapped by the tempo, then there are other, wiser solutions, one of which is to sell assets to cover it. Apart from that, if you have extra savings or an emergency fund, of course you can use the savings you have provided you don't use the savings as a whole for pay off debts. If you use all your savings for debt, it will be difficult to get additional funds and have the potential to have debt again during an emergency.

You can say that, this is because nowadays it is very easy to get a loan, if 10 years ago we had to be embarrassed because we wanted to borrow money from friends or family, but now there are hundreds of online loan applications that have become a trap for us, I suggest avoiding online loans because the interest is very high.

Taking of loan is inevotable when we don't have alternative, that is there importance as an emergency solution when we encounter problems and nobody to help with instant money when you are in need of it but what some people take previlages when they see generosity and it is very bad, why would anyone turn their self to addicted borrower everytime, there is nothing bad in taking of loan but when it becomes a daily activity, then it is nonsense, most people who do that always turned out as loan defaulters that don't pay back their loan again.

I would say people are less "addicted" and more trapped in the cycle as you said. The kind of people that take out debt, beyond a cheap mortgage rate, are the kind of people who would rather spend money now and worry about the consequences later. Living within your means when the celeb culture and world is constantly trying to sell stuff to you can be hard to do. On top of that people often get on a rollercoaster that they cannot get back off, rolling debt into new debt while interest rates can tend to creep up and instead of paying the debt you end up just paying off the interest. If it's a credit card they can often charge extortionate rates like 20% per year, it's very dangerous territory if you don't pay them off immediately and often the poorest suffer most because of this.

If the one has assets they can sell to repay a loan it is usually not the worst situation. Many take loans when they just want something and they not think about if they have anything to cover a loan. And usually if you have liquid assets to sell to repay a loan you can restructure a loan as well as usually in such case your average income gives you an opportunity to repay it without a radical solution. And many have no such option but even then they can solve the problem, it is not the end.

Yes, this can become a vicious circle, and it's important to take proactive steps to break the cycle of debt.
List all your debts and prioritize them based on interest rates, penalties, and due dates. Try to pay off debts with the highest interest rates first and then make a budget and stick to it. Identify unnecessary expenses and cut them out. Use the money you save to pay off your debts.

This is the problem of modern society, when every day advertising from everywhere tries to sell us something, and if you don’t have money for it, then they are ready to sell it on credit. It seems affordable and convenient, you can get the desired thing now and pay for it gradually. But in reality it is a trap, because today is a thing, in a week it is different and thus the sum of loans is summed up and it turns into a burdensome debt. For whom it will become an addiction, and someone will understand how stupid it is.

Taking a debt could be addictive but only if you use the money for something addictive, like drugs or gambling for example. And furthermore you must have an addictive personality for the addiction to become a real problem. But yes, essentially it could be very much addictive.

I imagine that the good feeling of receiving money is also something which could give a person a dopamine rush. Just like anything that makes you happy.

If you abuse that dopamine rush too often, it screws up your neurochemistry, therefore leading towards addiction.

In today's society, most people used to taking of loan find it very difficult to stop, because it's very easy to have access too loan.
 Sometimes they may not even think of the high interest rate due too the desperation toward the challenges facing them, time too pay back it will become an issue and  most of the resources they have will be use to service debt.
I always tell people that are close too me not too get involved in debt, because once you are into it, an financial challenge you have then you don't have money, the first thing that will come too your mind is who can borrow me, which is too bad

and most it is almost impossible to get approved your loan, so before you could only borrow money from those people that were lending it, but with a high interest rate, and you had no choice because you were in need of money, but now there are applications on your phone that you just need to install, and then money will be sent to you; it is really easy and tempting, which is why others right now can easily take a loan as it is easy to apply, though it is not an addiction, but they just got easily persuaded on getting a loan and just buying useless things.

If I even think of taking a loan it would be that I have a business that I intend to kick start or boost an existing one that will enable me to pay back that loan without stress or I have a job that can also aid by paying back the loan quickly without stress. I believe the problem would be people taking loans when they don't have the means of paying them back and investing in something that wouldn't yield ROI  and I wouldn't go for that cos it would play out as you have explained.

If we are to go by the rate of individuals needs in life then I think almost everyone will want to opt in for taking loan, but things were not as we expect sometimes, most people taking loan and finding it difficult to make refundment would have exercise a little more patience before taking it by adequately planning and taking time to invest something of value unto themselves which may later turn to a sellable idea that could bring food to their table, rather than taking loan that will shark up their neck.
If we are to go by the rate of individuals needs in life then I think almost everyone will want to opt in for taking loan, but things were not as we expect sometimes, most people taking loan and finding it difficult to make refundment would have exercise a little more patience before taking it by adequately planning and taking time to invest something of value unto themselves which may later turn to a sellable idea that could bring food to their table, rather than taking loan that will shark up their neck.

Taking a loan for a project or an emergency is not a bad idea, but once you get comfortable with the whole thing it becomes a big financial problem you begin to struggle because you take a loan to cover another loan that is when the whole thing has become addictive then its a serious problem, a lot of individuals have lost their properties to banks and other financial institutions all in the name of collecting loan and paying back its not nice at all, no matter how little savings is not a bad idea at all, at least you always have something to fall back on when you in  financial crisis than always taking a loan.

It doesn't have to be gambling or drug addiction, consumer loans can be just as bad. I wrote in one of the topics about the case when a person just buying all sorts of junk, really unnecessary junk, got into such debts that he almost lost his home.

The consumer society that is being propagandized today wants to buy, this encourages buying on credit. I am against this, because these are deferred payments, you still have to pay for this thing, only with a delay and with a significant overpayment.

So true. it is better for us to always prepare ourselves financially for our future as always routinely setting aside money for savings. small nominal is not a problem. the important thing is we consistently do it. This is done so that when we have an urgent need, we don't need to take out a loan because we have money in our savings that we can use when we really need it. it's better to avoid loans so that we avoid the problems that come after.

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

It's the first time am heating that someone has never had to loan money at some point in a continued life. I have my doubts on that as, you might not necessarily have to loan money from the bank or some financial institution but, from a friend or relative might as well count for loan. Anyway, that won't solve anything but then,
Taking loans ain't a cool idea. It's something am not okay with and so i don't. I might have had to take quick loans from a couple of friends and that might be in times where, ive got a pending transaction that needs to be cleared out or due to some network failures to have disrupted a payment process and whatever the case might be but, you don't take money when your not 100% certain of paying off in a given time. You ought to have had plans, all the elements to its attainment within your control and then, you could have a go at it if you must. Otherwise, keep off loan, its not a healthy habit.

Your explanation here just applies to the case of one of my uncles. It happened last night. Yesterday was my father's birthday so I went to dinner with him for celebration. In the midst of the meal, he got a call from one of my uncles, to be precise, this uncle is not my father's brother but an extended family cousin. Anyway, he called up saying his daughter has been admitted to college but he is  short of money for paying the tuition fees now. He is encountering some financial problem and has not been paid for months. Considering his daughter's education, he had to ask for a loan from my fathter, $5000. My father said yes and would prepare the money within a day or two. Well, my father and i both know this uncle will pay back so this kind of loan is acceptable for him.

Borrowing many times can make you addicted and from there will form bad habits. I have no problem with borrowers if their economy is really in trouble, and that is a last resort. But if you regularly take out debt, then you are addicted to it, and when that happens will make you lazy, making no effort in life. Every time you run out of money, you will not think about getting a part-time job or looking for ways to make money, but will immediately think of borrowing to use.

Having extra spare when there're unexpected emergencies will allow us not to worry that much, unlike if we don't have any available money, the effect is really hard for our finances.

To the point that we will be needed to barrow/lend money that will lead us to be stuck in paying either in a
weekly or monthly basis, which will be an additional expense which will add up the burden to our finances.

For some it is a different style of life: they always use credit cards, take loans, etc., but they always have enough income for all that and if they didn't take loans they'd anyway lived with not less purchases. As some countries with a high GDP and high income which always borrow money anyway — they can work without loans but prefer to use them. Just other style of life. Not suitable for me, but I can understand them. :)

Easier said than done because saving is kind of situational in my perspective. I mean, well, if you're earning quite well for a daily basis then you do really have some spare funds to save so that you have something to take whenever you need some emergency funds. But how about those people who barely afford to eat at least twice a day as they cannot even get themselves some food to eat as much as thrice a day and then there are some bills that they need to cover monthly. Saving is quite impossible for them even if they live cheap because their wages are not enough.

Having an outstanding loan and taking another load so as to pay for the outstanding one is more like running in circles, and there's this ugly side of debts/loans the more you find it difficult to clear it the more it piles up with steady interest. I don't fancy taking loans to use in executing my projects, if the needed amount for it is not available it's left for me to apply some breaks and work out ways to get the money other than loan.
I don't have experience with handling loans payment as I haven't taken any before and even the interest rates for loans in my country is something that should scare me from thinking of taking one.

Running in circles and you are really that making yourself getting drowned because of interest but this isnt really that a bad idea considering you are taking some loan from a bank which interest isnt really that big compared into those lending firms and corporations out there which i could say that its never been that worth. If you are making use of that loan amount on applying it on a business then i would say that it
is really worth it but if you are taking a loan just to buy up something like wants or going travel or simply with expenses then you are really that putting yourself into a big trouble.
We cant really just make ourselves that be like this forever, try to find ways on freeing up yourself from this shackles.

You're right, everyone doesn't have the same income and some people with a low class economy can't even have enough food 3 times a day, so saving is optional for them because they have to focus on their daily needs and they only work extra to get extra wages, but for people who already have a fixed income it is advisable to save for urgent needs because we never know when we need large funds for treatment or other important needs, but we already have some funds to use whenever needed.

It's true that your just repeating your situation whenever your taking a loan/debt just to save your situation for a day. From my experience, I needed to have some money to pay my needs due to covid-19 I lost my job for a month because the company doesn't want to implement work from home. So I decided to take some loan since the company started to open up again so my work came back. I realized that all of my income went all to pay my loans thats the time that I know I needed again money. Yeah its a loop so I had no choice but to survive just to end the loop. Don't ever try to loan just to survive it will worsen your situation.

So far, you are the only one that has no loan/debt in this forum and I am glad to hear from you. As the same type of person, I have known this feeling of debt-free so well and it is such a blessing. Please stay who you are and continue to live a life without any loan/debt. Cheers.

The thing that can lead to addiction is taking a loan, especially now that it's easier to take a loan because of the presence of an online loan platform, only the terms are easy and in less than 24 hours we have got the loan we submitted, the risk of online loan convenience is of course very much from the interest is very large and can reach hundreds of percent in a year especially if you fail to pay there will be lots of fees or fines.

This is the opposite of what the OP wanted to cover in this topic. Accumulating capital is what every person who knows how to handle money should do, but it is the opposite action for those people who are used to living on credit.

I know that people can change, but I find it hard to believe that a person who has never saved money can just start doing it. To do this, you need to change your thinking, and this is a very difficult and long work.

There is a type of people who simply do not understand why this is necessary, they want to live here and now and do not want to think about what will happen tomorrow, in a month or in a year.

Debts that are being paid by debts is a suicidal cycle that will only take away opportunities of your lifetime. Other people doesn't have any choice because they doesn't have enough privileged to earn money by being employed or being a freelancer, so that is their last resort. A cycle like that do exist most likely in a third world country. It's hard to have a life like that but that is the only way they can think of to survive.

The important point that you are expressing here is saving, because everyone cannot predict how their condition will be in the future and even everyone does not know when they will get sick. I also think that saving is very important so that everyone needs to allocate funds for several things in their life before they save as you suggest.

Because everyone needs to think about the basic needs in their life and also the need for investment for their future and the need for savings for difficult conditions when they don't expect them to come. So saving is the third important thing after allocating funds for the two main things I mentioned, although everyone also needs to prioritize their body's health.

I agree with you, it's best to try not to owe/credit so that our lives can be calm without the burdens of life. Debt addiction is usually a symptom of a deeper problem within you. Maybe it's ungratefulness and greed, poor self-image, or a lack of self-love to blame.

I, with the existing income, maintain or have the discipline to live in moderation so that there are savings or excess that can be saved for further investment, which later after retirement is investment income or passive income.

Some people mindset try how to get challenge with their life after having loan because they can push up working well how to pay loan interest every month, but not good financial advice when taking loan and used it as trading capital because not promising when investing or trading in Bitcoin will earn much profit later.

Life without paying loan interest every month make us freedom, but not wrong when some people minds get competitive have challenges with debts that must be paid every month, moreover being used for trading capital makes them more enthusiastic at work.

I'm not a borrower at all times but I have experienced borrowing for some time and it's freaking me out when I'm thinking of the deadline. I've chosen that and I've placed the burden and responsibility on myself so that I won't be damaged in front of the lender.
That's why as much as I can, I am avoiding borrowing and that's what I'm trying to achieve because I just can't take the emotional impact that it gives me even though I have no intention of defaulting a loan that I take from the banks or even to my relatives where they're on the business but they're not loan sharks. The importance of keeping some savings from your income or profit from your business is very much important, so in times of need you've got something to take and if that's very urgent, you can just pull it off on the banks and withdraw it as quickly as you can.

I definitely agree that this is indeed, a vicious cycle.

In order to determine on why this is considered a cycle, you have to understand why the person is loaning in the first place. Assuming that he has a stable job that provides income, he/she might have prioritized in purchasing other resources than meeting their obligations with themselves or their family. To address this issue and to pay the billables, they would resort to loans and other various loan shark channels.

This becomes a cycle especially when a person cannot afford a credit card to pay for it. With this cycle, the problem of paying the loan continues until the person is able to pay it. From this example, it can be gleaned that the problem stems from the person managing his resources and money. With proper financial background and support, this cycle can be broken.

to be honest I do not justify someone to be in debt but everyone's circumstances are different. do you know the proverb dig a hole close a hole, now the picture is like you owe it to the bank but can't pay it and look for another platform to pay it so that the money we have runs out to pay the interest on the loan.
when you are going into debt, you should think carefully, there must be potential money to be paid so that the cycle does not spread.

We have to leave the bad habit of taking a loan because debt will waste our time and opportunities to do other things, especially now that it's too easy to take loans so it tempts anyone, in my country it's very easy to take a loan from a smartphone application, only with a smartphone and sim card which contains at least 20 friends or family and then they will confirm that we will receive the loan amount immediately.

If you don't need to take a loan for emergencies, then it is good for you. We do have our own perspectives, even mine. If ever I have a chance not to take a lot, I will not be taking it because it is very hard to pay it back and you are struggling at that time, but I don't have a choice because I need money for emergencies and also because there are other things that I need to pay. That is why I only take a loan for emergencies, not wants.

Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.

One should be very careful taking loan - it can be very harsh on your friendship incase you are taking loans from a friend or family
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.

If the one takes more and more loans to repay old ones and other previous financial obligations it is usually not a problem of only financial support. Usually they need help with financial literacy and they can reject it being frustrated with their bad conditions. To escape that circle first they need to understand what main problem is, and in the case of growing loans it is usually not just money, but planning and possibility of calculating a personal budget. And we unfortunately can see that some can't escape that circle...

nowadays there are very many people who borrow money to open a business whose business has not fully run well, so with a courage, every time the bill they borrow there is always a way to pay it, even though they have to borrow from others which will also be paid off later, and most of them can end this difficult time until they can run a business without having to borrow money from others, Until now, success can be felt, but there are also as they also cannot pay off their loans and eventually all the assets they have will be taken over by the borrower.

Yes, it actually is. Loans give You a hidden shadow, impression, that You can afford it. But taking a loan actually means You can not. Also we do have to seperate two different type of loans. If u take loan for new TV, PC, or fridge (without having enough cash in Your bank account), then that's the stupidiest thing human can do. But if You take loan, for the thing You already can buy with cash (but You do want instead to invest that cash), then You are free to go. Discussion what that money should be spend on, what kind of assets, is a completely different story.  ;)

I totally agree with this since I believe that being financial literate would ease the burden of taking loans. Having loans isn't really the problem, but it would escalate to be a problem if you don't plan and think of it further. Taking it requires taking consideration of everything, and if you found yourself in the verge of being addicted to it, you should have a plan to get away from it. Cycle would always seem to be unending since paying loans is not the only thing that we are considering every day. We have to live, so personal expenses should be considered and that would make the situation even harder. But I also agree that for some this cycle is not getting any close for it to end, which is very unfortunate to think, since we could have done something before you put yourself on that situation.

It's a bad financial decision to borrow to pay a loan. The cycle never ends and you may never really be debt free because the money you're borrowing isn't going into something productive that can yield profit but rather to pay another loan.

If you feel that you can become addicted of something wrong the main thing is to try to avoid it as only possible. Solving a problem is usually much harder than avoiding it. And as we talk in this topic even if some found that they are fall in the problem of a loan they can't afford they should stop taking loans and try to solve a problem any other way just in the moment they realized they can't handle it. They should ignore feelings like shame and pride and ask for help. It is really hard but when they'll see some light in the future they'll feel much better.

And as I see it we try to motivate people not to start taking loans if they don't know how to deal with them and not to give up if they found this topic in a search engine and want to know what to do if they have a problem with loans.

The problem with balancing loans and your daily expenses, if you know how to limit yourself and know how to find additional ways to earn, taking loans and use it for business is something that you can control.

But, those who are taking loans and can't handle their finances, they are prone to keep finding additional loans
since they needed to pay the first one and the cycle will just continue to do that, they will ask for more to the
point that they are just only working or doing business just to pay for the loans.

The point is that you want business capital, whether it comes from a loan or your own money, if you manage it improperly, you will definitely lose.
so if my view is not wrong the debt is wrong but the business plan is wrong so many people cannot repay or repay the loan. Try occasionally not to blame others for your own mistakes. Loans are okay as long as we are able to target to pay on time. Don't borrow money to splurge.

As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.

And it is usually not a good idea for an entrepreneur to take a loan for their business when it is struggling already, because they get another problem with paying debt while everything is no longer okay. Loans for business usually can be a good idea when everything is growing and they want to scale their business and increase their income, when their business has no problems with money.

So now we can see why many people can get into a vicious circle of loans, they think that when everything is no longer okay it will be good to worsen their position with obligations on loans. Sometimes is can help, but not in most cases.

Also, only take a loan when you have the capacity to pay it back. Especially for credit or installment loans, only borrow money when you have the whole amount with you and the only reason that you loaned is because you want to maximize the time value of your money. It is also important to pay on time so you'll a good credit score or impression. Discipline is highly important so  we can enjoy the money we have and the trust we built.

Lately, there have been many applications that offer loans quickly and easily. they talk about low interest but not too much time period. so that it will be difficult for the borrower. because they don't have enough time to find money to pay off the loan.
many are stuck with this.

and well, in the end, they work only to focus on paying off their loan repayments. and it does make financial management difficult to implement. so it is difficult for them to escape from the debt bondage that they have entered. so we should really avoid things like this.

Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.

Loans aren't for wimps. It's a major decision that might affect your finances and social life. If you're borrowing from friends or family, think broad picture. Research show that money problems may undermine even the healthiest relationships, causing anger and conflict. Hence, you must handle the matter carefully and discuss the dangers and benefits with your loved ones. Now, loans might help you realize your dreams. Smart loans might help you launch a business or return to school. There's risk, but don't let it stop you. You can succeed with a good plan and attitude. Self-confidence is key!

To back up your loan, aside from the possible earnings from the business that you'll going to put up, you also need to have other sources of income that will help you to pay your loan.

If you'll going to take everything out from the new business that you just started, the chance that it won't
survive for long, unless the business is really good and really producing a decent amount of earnings.

"Now, loans might help you realize your dreams..." I agree with you in general but putting self-confidence in loans will lead to disaster. You have clarified that it is better not to borrow from family or friends, with which I totally agree. But "smart loans" ? I don't really think so. All loans are designed to make profit out of borrowers and there is no exception. The only part that may be called "smart" are small group of people who can take advantage of loans such as banking managers. For average people like us, there is no way we can outperform the whole debt system. I would never be confident in handling finances. Just live within my means.

a businessman who takes speculation with careful calculations, of course takes a loan in a safe way, I know this from where I work, where leaders take a maximum loan of only 25% of their assets, so that if something bad happens, financially he stays strong. instead of taking a loan because of a lack of capital, but this is more to maintain a relationship with the bank, until finally trusted by the bank because it has a good track record, because he is committed to carrying out new projects does not want to use personal money to run it

If someone has experienced the ease of taking a loan then he will continue to take a loan for pleasure and lifestyle, nowadays people take loans not for needs or important things but mostly for fun and lifestyle, this is because social media makes everything possible. chaotic.

Well you should take a loan and pay it back on time or early.

Loans and taking the proper amount of them is fine.

I had a 30 year mortgage in 1992 I paid it by 1999.

I have borrowed over 200,000 on credit cards since 1986 I have paid a total of 25 -50 in interest and earned over 4,000 in bonus points.

So that is proper management of loans.  Are they addicting for me no.

Do I lose money doing this no.
I have well manage good credit

see image below.

I could get that card and have 12 months to pay it back no interest.
At the moment I am not buying gear so I won't use this offer.
I have been doing these offers since I started my ebay business in 2003.


https://i.imgur.com/nAvdyOJ.png

Only short-sighted people take loans for fun or to satisfy their lifestyle. Because it is very unwise to make a loan, unless the loan is used for doing business or it could be that such a person has a monthly salary where he works so he dares to take a loan to buy luxury goods which he then pays off in accordance with applicable regulations. So it's not always bad, although it would be very wrong if someone who dared to take out a loan didn't have a steady job himself.

I go with those wise people who use loans as a source to support their business,

not exactly use loan to start up but to use this capability to add some fund to support the business and to explore for more,
people who are good in controlling their finances which can generate them good success.

But, to those who uses this privilege just to satisfy their lust in buying luxurious things or use loans for personal expense,
most of the time they are the one who got problematic when they can't no longer balance their finances as they will keep
trying to add more loans to cover the previous debts.

It's essential to have a clear plan in place for paying off the debt and to stick to that plan as closely as possible. However, unexpected events can arise that make it difficult to keep up with payments. In those cases, it's crucial to communicate with the lender and explore all available options for managing the debt, such as a payment plan or loan modification. It's also essential to avoid borrowing from other channels to pay off the debt, as this can lead to a vicious cycle of borrowing and accumulating even more debt.

I think the factor that makes people too easily in debt is a luxurious lifestyle, many people compete to show off their luxury on social media so that many people want to follow them, unfortunately most people do not have the ability to buy in cash so they rely on debt, and also nowadays it is increasingly easy to owe in the online application.

That is really the problem with some people, as they always want to get famous, they always want to flex and show off, even if they are in debt. There is nothing wrong with flexing your expensive things, but if that puts you in debt, then it is useless because it means that you can't afford them. Though we all have our own opinions about it, others will say it's okay to be in debt as long as they can pay it off on a monthly basis, and others, like me, don't want to be in debt. 

You are right that borrowing money to pay off debt can create a vicious cycle that can be difficult to break. It's important to have a plan in place to manage your debt and make payments on time to avoid accumulating more debt and interest.it's important to be proactive and take steps to manage your debt, rather than letting it spiral out of control. With patience, determination, and a solid plan, you can work your way out of debt and regain control of your finances.

After taking the loans for pleasure and lifestyle hope they have the means of paying them back because we cannot forget that part of it and with interest too. If someone is going to take a loan for investment knowing fully well that it will pay itself back or there is a source of paying it back before ripping the earnings from the loan later is ok but just taking a loan for pleasure, I don't see a sense in that.

Smart businessman know how much percentage loan taking and invested on their business depend with their assets having, I think very smart when getting 25% loan from their assets and they know when getting risk or out predicting ability repaying based on assets they have. But contrast difference with trader or investor getting loan without have any assets yet and some of them brave getting 100% loan and use all for investing in Bitcoin.

Not smart ideas when Bitcoin drop and should holding until unpredictable time how possibility repaying loan and interested every month due not any income having, there are not any assets ability for selling except have to cut loss and actually many people don't realize when taking loan how much percentage possibility depending assets having.

To me being honest is very important - having a good finance dealing with bank and with the people is very important
There is no harm in taking loan but returning it timely and being thankful to the lender is not possible for everyone. People forget after taking loans. I have even seen people who would threat when they ask for their own loans

Take a loan from other channels to cover other loan is not effective solution. Before taking a loan, you have to do a calculation between your income, assets and debt that you will take. Don't let your debt exceed the installments you can pay each month or even exceed your income. In addition, you have to think prospectively, that when you take on debt, you have a plan with that money to increase your income. for example, creating a small business to increase your side income. at least it will be enough to cover the interest or more

Everything can have sense. If they have a good job with a good income, if they have some good investments which are not good to sell at the moment and they want to take a loan for leisure at the moment then why not? If they can afford that I think it is their business how they deal with their finance.

So finding a sense in a purpose of a loan is not a problem, the problem is when a loan is taken without understanding of how to pay the debt. And the reason of such a reckless loan is not always so important. Of course if you need to save life or health it can be a good reason, but in most other cases we should think about paying the debt before taking a loan.

too concerned with a style will indeed make someone dare to do anything to still be able to fulfill his desires. because such a person always wants to be praised by others. and indeed not a few of them turn out to be on social media always showing off luxury goods but it turns out that these items are obtained from credit results. even though the main thing we should avoid in managing finances is spending money on things we really don't need. and only buy what we can afford to buy. don't push yourself by taking out a loan. because if it has become a habit, not a few people will go bankrupt because they cannot pay off their debts.

Start by taking a hard look at your finances and creating a budget. This will help you understand your income, expenses, and where your money is going. Once you have a clear picture of your finances, you can start to identify areas where you can cut back on spending and redirect that money towards paying off your debt.

It is not about living luxurious lifestyle alone, anyone can live that lifestyle if they are comfortable but I think the main problem is they try to live to impress people, this is where the problem comes from. There are people that think they need validation from other peoples and their views and when you buy into all this society peer pressure, you will become broke and keep borrowing until you exceed your limit and after you look back into history of what you have used money for, they do not worth the time, it is better not live to impress people and avoid extravagant life.

Most of the people are addicted. And those who are addicted will keep searching for the people who will use them for their benefit.
There are people who are very bad in returning their loan.
And these are the people who are never trusted.

Yes, I think so because taking loans makes you lazy as you know you work at a place and you get paid a specific amount and you have finished your current savings on some useless stuff and now you are interested in taking a loan and then paying back on the Monthly salary this is not a good habit. Avoid the conform zone for some years if you want to really live like a king. Bear some hard times if you pass it then you can save a lot of money which will help to establish a better future. Say no to Intrest  

many people who take loan from the bank invest and earn good profit on it.
These are the smart and talented people - on the other hand there are people who are addicted of getting loan from the people and they never pay back - they are the losers and lazy people as you mentioned

It is a survival bias: if someone succeeded in a risky enterprise it doesn't mean that everyone can do the same without any risk. We know stories when someone fell from airplane and survived but this is still statistically very uncommon. Some people can earn on investing even using borrowed but it will hardly work for majority. As i won't recommend anyone a gambling as a way of earning I will never suggest anyone take a loan for investing. If you lose what you have it is frustrating already and if you lose for what you have to pay for years it hurts much more.

My brother working at bank. He said if you have any debt make sure you pay it or never pay it late. The bank will black list your name so you probably hard to get another loan. For some people loan can be addicted i know some of my friends like to take a loan for something useless.

Taking a loan is fun, we can easily take a loan, especially now that there are many online applications that offer large amounts of unsecured loans, I have friends who like to borrow in applications, even though the interest is high.

Dealing with debt can be a challenging and stressful experience, especially when it becomes a vicious circle. It's important to address the problem as soon as possible by communicating with the lender and exploring different options such as restructuring the loan or seeking assistance from credit counseling services. It's also important to develop a budget and prioritize expenses to ensure timely payments and avoid accruing additional debt. Seeking support from family and friends can also be helpful during difficult times. Ultimately, the key is to stay proactive, stay focused on the end goal of becoming debt-free, and seek help when needed.

There are levels to the habit of taking loans. Some may take it to meet up and complete a project that would eventually brings a profitable ROI that would be use as source to repay the loan in due time, while others just find it normal to taking loans at every little financial issues that necessarily doesn't demand taking loans to solve it only to end up taking another loan elsewhere to repay for the previous and gets addictive that they end up using their valuables as collateral and this is very bad

If you don't have the money to meet up a pressing demand, project especially for one that ROI is not sure , it's best to hold on look for other avenue to work your ass to earn money within the short or long period to layer meet up with such project or demand instead of putting oneself in unending chain loans.

if your friend has a job it's still not a problem, if your friend doesn't have a job it might be a problem. because there is no monthly income to repay the debt, if otherwise you cannot repay the loan maybe your friend will be terrorized by the bank to pay off immediately. I prefer to live without a bank, which is risky and calm

Exactly, I guess it depends on the people who take the loan. Loan has its good benefit specially if you are smart enough to maximize it, just for example you want to start a business and you dont have capital to use, you can loan to start it, which may lead to something big if it become successful. On the counterpart of it, there are also people that I know who get loan just to buy their wants or to travel. Its not bad to be honest but I just dont see it as a profitable action cause its only satisfy you for a short period of time.

From my own understanding nobody intentionally get loan from any angle but I understand that why people get loan or have low because of problem they are into and that causes death to them if they are not able to meet up the target of refunding the loan it have course adept them so nobody have it in mind to be having no from any other person except problem Hai

And taking a loan can actually affect the borrower psychologically. sometimes those who have a lot of debt in their lives become restless. they find it difficult to find peace in their minds. they are constantly being chased with installment deadlines that they must always pay without being late. so they constantly feel uneasy. but those who have debt also sometimes work harder because they always say they want to pay it off as soon as possible. many even say that they are tired and don't want to take out a loan again in the future. but when the loan had been successfully paid off they turned out to have changed their mind. and they really seem addicted and take loans back.

Once a person's debt problem becomes a vicious circle, seeking support from family and/or friends will be causing more trouble because usually family/friends already know that you are unable to pay the loans off and if they lend you money, chances are that the money won't be paid back and your relationships will be greatly affected by the money issue. Believe me, this is not fun. From my point of view, the best way to avoid debt/loan is to never initiate a loan. Always live within your means and try to be financially independent as soon as possible.

But when you take out a loan, make sure it's being used for something meaningful. Also if you take out a loan, make sure you borrow an amount that you can afford to pay back at the appointed time, don't lend an amount that you can't repay, so you won't just take a loan from somewhere else. to pay back a loan you borrowed and you haven't paid back. If you continue to take out loans, wherever you borrow money from, it will definitely add up to their own interest.

Nah, I've seen people mostly boasting in social media about buying those recent versions of the Iphone, which they are proud of. They can buy those, but in the later part, someone will say it is an installment. I am not against those people as they can repay it, and I am not the one paying it, but the point is that it is a waste of money to spend it on your wants unless you bought it for vlogging purposes that you are already earning from it or for photography. But again, it is not my choice, so let them be.

As long as your friend has no problems in terms of returning it, of course it will always be fun for him to continue taking loans. But the problem here is when a person cannot pay off his loan when it is due, because now it has become very easy when there are many online applications for borrowing money. But there are still some people who just like to take loans, but it's hard to pay them off, so it's highly recommended for those who still have trouble paying them not to take loans from any party if they still want to live a more enjoyable life.

What you say is exactly right, because I also prefer to live quietly without being burdened by the bank or any application party in terms of debt. Maybe for some people this kind of thing is really fun, but for me personally that kind of thing really weighs me down in life because I prefer to live freely without any debt with any party.

Don’t underestimate the financial system and financial loop holes. They can flush back really hard if not managed properly. Managing the funds which are taken on the loans is not easy job. The main reason is you are tied with bank officially, your profile and social security number gets linked to every financial move that you make. Every time you miss an EMI or bounce any you can get punished in the form of bad CIBIL score. This in turn can make your defaulter and won’t be good in future perspective. So whether talented or not, one should not underestimate the financial frauds in the long run. Yes peeps do it, they take loans on low interest rate and spare them to other higher but once peeps start failing to repay it creates cascade of events making it hard to recover yourself. So be careful when it comes to managing funds.

The purpose of buying an iPhone is to flash and take good photography.  It is a trend of this time. But yes social media is now a big source of earning.  It is possible to earn a good income by creating content and monetizing your account.  So buying a good phone at a high price is not a bad thing in this case.  I dabble a lot on Bitcoin and am quite active on this forum, but I use a Fluxip phone for that as well.  But it doesn't matter because I am doing a lot of work with this phone which is helping me to earn

As long as we can afford not to do that (indebtedness) then why are we doing it because indeed, as you say, this will only make things difficult for ourselves.
Looking for debt that we really don't need is the same as making our life more difficult because what are we in debt for if we can still support ourselves and our families.
It's just a matter of actual determination, I think, because sometimes borrowing only starts with desire, even though it's something that can be said to be not very useful at all if we are not pressed for life and can still live without debt.

Obviously it's a vicious cycle that never ends if you keep doing that.  the impact of the debt is getting more and more mountainous as much as possible avoid things like that, usually borrow money from parties other than the bank, the interest is bigger and just as terrible if you are in arrears you can't pay the loan money, you can deal with collector services and your goods can be used as collateral then your name will be blacklisted  lists from other banks are even more terrifying if you try an online loan, all your personal data is at stake

It's true, taking a loan is a serious problem that can become an addict, especially now that it's easy to take a loan from an online loan application with only a mobile phone, phone number and ID capital, in just 3 hours the loan amount we submit can reach the account .

the only way to overcome it is to pay off the debt. I know several people who are stuck in that circle. it's like digging a hole to plug another hole. sometimes, the people who do this are people who make a business with a loan, but the business is not doing well, then he looks for a bigger loan to pay off their old debt and tries to start a new business. However, it is highly not recommended because it can be fatal if the plans we have fail.
However, if you are in that position, I suggest trying to pay off the smallest debt first. maybe we need extra work to make our income able to pay off all those debts. but that's the only way if you don't have a rich family or a very trusted friend to lend you money to pay off all those debts and you can repay the money without interest.

Most people are opportunist and can take the advantage of it. They look for the options to get money out of other people pocket and just vanish
I have witness many people who take money and then try to supress the lender for more money

yes, I agree with you, most people who come to love to collect their rights back are sometimes harder on those who are in debt.
Usually people who like debt but find it difficult or don't want to pay the debt back. This person will always be in debt and his life will be filled with debt. My advice is never to give him a loan.
But those who want to pay their debts back are usually only in debt when the road is deadlocked, meaning debt is their last solution.

In my opinion, taking a loan can lead to addiction because people think instantly and are lazy. It's only natural that currently many companies offer online loans because most people will make loans that don't require difficult conditions, but the consequence is that they provide high interest because of the risk of consumers not paying. very high.

Laziness is a trait that exists in some humans and it is very bad if everyone continues to maintain it because it is a behavior that can make everyone spoiled for work. Actually, if you think about it more broadly, the companies that provide these loans are for people who have regular jobs with a monthly salary that is always there.

Not for lazy people who don't work because they definitely won't be able to pay it and the company won't give loans to people like that even though the conditions for taking a loan are very easy. And those who usually have an addiction in taking loans are also lazy people who don't have a steady job because they always prefer convenience in getting money easily without doing any business that can increase income in their life.

It depends what type of loan we're talking about and if there is proper financial regulation in your country to stop finance related companies from over extending credit to you, that would be impossible to pay back. If you're taking a loan from a bank and have good credit, you might be able to get an interest rate in the 4-6% area which - while high - is about the best that the average borrower might expect to get on a short term loan. However if you're borrowing from companies like payday loan or credit card providers, then you can often be paying in excess of 20% which is an obscene amount that leads to the type of snowball effect that you describe. Many naive or uncaring borrowers skip right past these expensive numbers because they only have the lump sum in mind, not the extortionate repayment amounts.

I have also same record in my life I also never have loan or debt in my life although I don't know if it will be need in the future, But I also think taking a loan is not a bad thing if it is used for a good purpose, like a loan can be taken to start a business. But I hate living on loans or debts or taking a loan to buy something that he can't currently afford. I believe in simple living and high thinking, if one is hardworking and lives simply then there is no need for a loan. I think if you take a loan without any valid reason then you will have no choice but to bankrupt yourself later.
well said mate, Your words coincided with one of my relatives, he currently ran away from his home after defaulting on his loan a few months ago. And his life has become a cycle of taking and repaying loans and debts just like you said. His habit was such that he would take a loan from one person and pay off the loan from another person, and when he could not pay back, he would run away. He has done this several times. Since the loans are without documents, the relatives or friends who gave him the loan are in trouble now.

Sometimes we also don't know when we will be hit by a disaster or whatever problem will push us to take out a loan in the end.
We may make a loan, but we must really place the option or choice to take the loan for the last way we take it. And never cover a previous loan by taking a new loan elsewhere.
Because actually it will increase our debt burden and the more money we will pay to pay off the loan in the end.


Yes, you are right, taking a loan can have a bad impact on our habits and mindset, because when we are facing a deadlock in a problem that involves finances, it will be easy for us to take out a loan because currently applying for a loan is very easy and fast.
Of course there will be high interest if those who make loans cannot pay it on time, which is why actually taking a loan will sometimes add to the problems for the person taking the loan.

besides that, another thing that makes people always borrow is a lifestyle that exceeds their economic capacity. they borrow for uncertainties, or for items they want, until they realize they cannot repay the debt without taking it elsewhere. well, maybe because of an excessive lifestyle, or because they want to take risks from businesses that shouldn't be taken, people become addicted to debt. however, we can borrow if it is necessary, but we need to think about how to pay off the debt.

I think calling that an "addiction" is rather incorrect, because it could be better described as a personal or even mental disorder.
If we assume that someone could have a home, food and health without having to borrow money, then realistically that person could work in order to improve their personal situation and save money.

But in a person who would rather to take a loan for frivolous things instead working does so in a regular basis, we could say such person is someone with a problem of seeking immediate satisfaction or even in denial of this economical context.

An extreme example are the so-called "Congo-Dandies" men from the DRC in Africa who spend a fortune in fancy clothing in spite of living in poverty, their clothing is worth more than their houses.

https://www.youtube.com/watch?v=DXUq6TCfHvE

One approach one could take is to contact ones creditors and explain the situation. They may be willing to work with you to develop a payment plan that is more manageable for you. You could also consider consolidating your debts into a single loan with a lower interest rate, which may make it easier to pay off your debts over time.

Another approach is to take a close look at your expenses and find ways to cut back on unnecessary spending. This may involve making some difficult choices, such as giving up certain luxuries or finding a more affordable living situation.

Finally, it is important to develop good financial habits that can help you avoid falling into debt in the future. This may include creating a budget, saving money for emergencies, and avoiding unnecessary borrowing. With time, discipline, and patience, it is possible to break out of the cycle of debt and regain control over your finances

I don't think debt is something that can be stopped easily. Addictions, no matter the kind of addiction cant be stopped easily. People who are addicted to debt don't borrow because they are broke they borrow because they're addicted to  it. There are people who are in too deep in debt to an extent that they need to borrow to survive, these are the kind of people that can stop borrowing when they get a huge amount of money.
People don't just wake up and find themselves in huge debt, it happens slowly. They can take a loan for something and when its time to pay back they don't have the money, now they have to borrow to pay back and so the vicious circle continues.     

In addition to what you have already mentioned, most of these lazy borrowers do not return their loans to their lenders, and these lazy people will even stab liars just to get what they borrowed to the creditor.

Also, whoever lends money will not agree that there is no source for the borrower. It's just that sometimes even though the borrower has a source of income, they are always delayed in paying and usually they are unable to pay the lender because they are also running away from it. That is sad and also a risk for the lenders as well.

There's different kind of people for sure, there are those who got addicted as they are using those loan money to finance their desire luxurious things in life, while others are taking loans because of hardship in life.

We don't or we can't conclude the reason, but most of the time those who are addicted to taking loans
just to finance their vices are the ones who can't really control it.

Saying that addiction can be stopped easily is indeed quite wrong because if something like this is easy then we can also stop gambling addiction or addiction not to drink alcohol and smoke. In fact, when something like this is categorized as an addiction, it indirectly means that this is quite serious and clearly cannot be stopped just like that.

But even if it's like that, that doesn't mean it can't be stopped either, it's just that it does take time for that.
The problem is to stop addiction like this, of course we have to be really serious and need support from those closest to us but sometimes there are always several factors that are not there when we try to stop addiction.

as long as we have a source of income that can cover installments, there is no problem. but the problem arises indeed when the ease of making loans is present at this time. people find it so easy to get loan money that they are used to borrowing whenever they need more money. and if this becomes a habit then it is a very bad thing for their finances. because they have to continue to pay the loan along with the interest. and the beneficiary is the lender. he continues to benefit from the interest charged to the borrower. And yeah, it's true that most people have lifestyles that are high above their own income level. and such an imbalance is very dangerous if left unchecked.

What the OP is trying to define is called debt consolidation. Debt consolidation according to Investopedia (https://www.investopedia.com/terms/d/debtconsolidation.asp)

Ain't nothing wrong with debt consolidation if the debtor has an excellent plan in place. Which involves developing a repayment strategy. This will include developing a budget sets aside the amount of money to be repaid each month. The most important thing is to stick to the plan and reject the urge to collect a new loan when you already have this plan in progress. The goal must be to ensure that the old loans is cleared off before a new one is requested.

Most times people borrow relatively for the very wrong reason and at the end of the day get stocked in their debts
And end up wanting to borrow more.
Answering your question, I really don't think taking of loan especially for the right purpose is addicted especially if debtor has a good repayment habit and I've gotten loan in the forum for the third time and I always make sure I clear up my loan and the major reason for the loan was for my treatment and since I don't want to ruin my account or have a reoccurring interest to pay, I always make sure  to clear my loan as soon as possible even before the due date if possible.

A serious problem if not managed carefully or if used improperly. When a person borrows money, they are responsible for repaying the borrowed amount along with interest according to the signed contract. Failure to pay your debt on time can lead to serious financial consequences, including increased interest rates or late penalties, reduced credit lines, loss of property, or facing legal consequences. However, when borrowed/debt is used properly, that is when used to invest for a beneficial purpose or properly managed by paying the debt on time and not beyond one's financial capacity, then it can be a useful tool to help expand the scope of a business or personal fortune. In short, borrowing/debt is not an addiction, however it can lead to bad consequences if used improperly or managed carelessly.

There is nothing wrong with a loan if not abused, many billionaires today one time or the other had to take a loan to finance their business as a source of capital for start-up businesses. Only if the loan is to access things that had no value for example buying new clothes just for a party or show up.

Actually there are 2 important points for the decision to apply for a loan, the need for business capital and emergency needs because of the need for large funds, besides that if applying for a loan to improve lifestyle then he must be prepared to pay high interest and the fatal risk of losing property or the borrower / bank will make foreclosures of expensive items equivalent to the rest of the loan, never get involved in a loan if there is no important need because you have to consider high interest payments and have to have a passive income higher than loan payments every month.

This work will always follow someone's every decision, it's true that if we often take loans this will continue to make them addicted to this, and of course with the current options that are easy for them to make loans easily and the terms are not too complicated, some individuals will be tempted by this, and they give it in a practical and easy way, because this will continue to cause them to be addicted to this, and maybe that will become a problem later in terms of the interest they will face.

That is because they are on a better state. The banks are the ones that are even offering them loans without even the need to apply and that kind of treatment is because of their status and their success.

They can actually use their money to finance their other investments and businesses but they have known the trick over the years without using any single penny to finance it.

And that's the cashflow that they're proven into their businesses and the banks are hungry with those that's why they want to take a slice of the pie from these billionaires. The banks are also aware if something messes up with their loan to them, they can easily pay it whether with cash or with their assets.

I think borrowing money repeatedly won't be a problem if you pay it on time, but the problem here is whether the person who borrowed can be responsible for what was promised? Since we don't know what goes through someone's mind after borrowing money from you and the responsibility to repay it on time, I don't think everyone has a conscience when it comes to paying debts or repaying loans he has borrowed.

Well, the bank have some responsibilities too. If they gave you a loan that you were never supposed to get based on your income, then there are ways were you don't have to pay. For farmers in Norway you have to take loans if you want to upgrade your farm, the loan will be so expensive so they are not able to pay it back with their income because the prices of their goods are decided by some big players in the industry. And the farm is worth less then what they have in loan so that is also not a good option, but usually many farmers have secondary jobs. That is also a solution, work more, work harder, freeze in the winter (don't use money on heat), go in the forest and pick berries and mushrooms, fish in the ocean etc.  >:(

But the it is really like you said, it is a vicious circle the banks put us through with all the loans and to pay with credit. Vicious people and the worst pyramide scheme ever, Bernard Madoff is nothing compared to these guys.

Back again to each individual, whether the loan is taken for business support needs or just to fulfill a lifestyle. When an impact has been carefully considered and adjusted according to needs, then a loan may be something that is needed for business development, for me this case is not bad. Loans have two alternatives in my opinion?

1. Active Loans
Active loans are usually taken for business needs and they have considered the number of needs with an adjusted timeframe, usually this form of loan has very few problems and most importantly loans like this can be used for something more useful.

2. Passive Loans
This kind of loan usually won't help people, because the purpose of taking a loan is not for business development or anything like that. More precisely, loans like this have no direction and purpose, only for non-urgent needs and following lifestyle.

I classify two forms of loans that I often see, of course there will be many references to loans and everyone may have their own perspective. In my opinion, we can avoid one form of loan and it also doesn't hurt to try if you have more Good goals.

Yeah, I get what you're saying. There are people that takes more loan from other to pay their current loans and then they get piled up by different loans, ending up drowning. Loans and debt can be a real pain and stress in your life if you're not careful. So, when borrowing, you got to make sure you've got a plan to pay it back on time, or it can get messy. If someone's stuck in that nasty cycle of taking loans from different sources to pay their current loan, they should stop and start making a budget, figure out which debts are most important, and try to pay more than the minimum amount when they can. Talking to a financial experts might help too. It's tough to break free, but with some discipline and a solid plan, it's totally doable.

This totally depends on the individual taking the loan and the purpose of taking the loan. A business loan that will be used to assist a business and potentially increase the chances of that business bringing in profit or been successful is not a bad loan and you can't say the loan is making the business or individual that took the loan lazy. Instead it'll make them more proactive to be able to pay the loan.

When loans becomes bad or addictive is when the individual taking the loans wants to make use of fo it for their immediate financial problems and not as an investment or capital to their businesses. This set of individual with this mindsets could become addicted to the loans commonly in cases when they're easily accessible.

Also here in our country, most of the farmers that I've known have their farm land in a bank because they took a loan to just plant crops as they don't receive any help from the government, so they took a loan and are having a hard time paying it back. What's saddest is that if they hit with a storm, they are having a hard time getting up, which is why others lost their land, and they tend to work as construction workers as they don't have land to plant on anymore.

Well, if it's borrowing money to pay off other debts, it's unlikely it's an addiction, but it's probably stuck in the cycle. it happened because they borrowed more money than they could earn. finally, they will continue to borrow until they can pay off the debt.
maybe there are some people who are really addicted to borrowing because of their necessities of life, but I think this can be solved by increasing the income we have, or being really honest with the owners of the money so they replace it slowly. Cycles like this will be very difficult to stop if we have very little income.

Lending money to start a business is not a bad idea, but before doing so, keep in mind that you will have to pay the lender interest. People who borrow money from banks to start businesses typically have a plan A and a plan B or are aware of the type of business they will need to run in order to turn a profit and repay the loan before the specified deadline.
Some people believe that borrowing money is a bad thing, but in my opinion, doing so is not bad because many people have borrowed money to launch successful businesses. Therefore, borrowing money from a bank to start something worthwhile is a good thing.

Before we take a loan, we need to consider the needs for taking such decision beofre proceeding, also we nust not let taking loan be our priority or habit that we always do and get into us, those that often take loan make business with it and take their profits from it after repayment, this same people were not new investor or a business start up, they are people already in the system that need extra fun to push forward business bids on particular aspects.

We need that to acknowledge the needs and not just to use the money in spending into something that's not that important. Taking loans is a responsibility that we need to pay back.

If you use it just to buy something that's not really necessary, then expect that you needed to spare
portions of your salary to pay it back, else, you will keep repeating by taking more loans just to cover
that first loan that you did.

If we return to the first post in this topic and then look through entire topic we'll see that the problem we discuss is exactly about if some take loan, then have problems with paying it off and then take another loan to pay the first one and so on. If someone has no problems with loans, pay in time and supposes he is okay with taking loans all the time it is just his choice. But what can the one who has problems with his debt do? And we try to advise at least not to take new loans not to get into a debt hole even deeper and try to negotiate with a bank or go through bankruptcy proceedings.

It is so easy when you have no problems, but what if you have?

There are really stupid loans where a person has 11 iPhones and they take out a loan to buy themselves the latest model and they don't have the money to buy it, this is what I call stupid loans. But sometimes there are really difficult situations when a person is forced to take a loan, because he does not have money in order to solve the problem that has arisen. And although I am also against such loans, but in a certain situation you don’t have to choose.

It is necessary to try to have some kind of savings in order to have a safety net for such situations, not everyone thinks about it.

It is impossible for everyone to think the same way. Moreover it is bad for society in general as diversity gives our species lots of advantages. So there always will be people who don't save for a rainy day, they just have a different type of temperament. But it doesn't mean they will necessarily fall into a debt hole, they can know how to deal with their style of life. And those who have savings can be caught in the loan trap as well, and moreover they usually have less clues how to get out of it and are less prepared to the situation.

If it is not a matter of literally life and death it is usually better to try to solve any problem without a loan. Loans can be not so bad when everything is great and there can be more development, and you can easily pay up.

I think so, nowadays it's too easy to find a loan because of the presence of online loan applications, in my country to borrow $2,000 worth of money, just send identity and selfie, and within a maximum of 3 days the loan amount will be accepted, but with the ease of the loan, interest must be paid very high.

Actually there is a problem of loan addictions, it's like gambling: people get what they want to have, then they pay properly, then they take one more credit, and so on... And at some point this person experiences problems with money loss (either problems with job, or other problems which need much money to solve), and then in order to pay the debts he or she needs to take actions in a hurry, which lead to even more money loss: they start selling houses/cars/business projects in really short periods of time, which makes them get less money for selling their belongings and property. This economic activity makes people gamblers, though most such gamblers don't even understand it and think that everything is stable.

Right some people use loan as their coping mechanism for stress because they wanted to buy something they can't afford. They continue to take out loans even when they don't need them or when they can't afford to repay them that leads to a cycle of debt and financial instability.

It is somehow the same with credit cards, it provide a sense of instant gratification and allow people to purchase things they might not be able to afford. Credit card companies also often offer incentives and rewards for using their cards which encourage people to use them more frequently. Tho I think borrowing money and credit card are different things because credit card addiction tends to involve smaller, more frequent purchases, while loan addiction often involves larger, more significant purchases such as a home, car, or personal loan. Regardless, those are both borrowed money. We should only borrow money if we are already expecting something that we can pay for it or we are just maximizing the time value of money.

We have that kind in our country. So many ways online where we can borrow money and just have to provide IDs. I usually doubt its fast approval that's why I haven't tried it yet asde from the fact that I don't feel the necessity, but a relative of mine tried once. She borrowed money and then the next  week she paid for it, now she is allowed to borrow greater amount.

It's true that they charge higher interest rates than traditional lenders, particularly if you have poor credit. And since online loans are so convenient and accessible, it is easy for people to overborrow and take on more debt than they can afford to repay. I even think that some online loan is a fraud, so it's important to do your research and choose a reputable lender, and only borrow what you can afford to repay.

Putting too much addiction on loans will also not be too good for yourself because living with always being filled with loan pressure will also not make every individual feel comfortable. Now don't just think about the ease of taking a loan, but also have to think about the ease of paying it, because when someone can't easily pay off a loan that he has made, it will actually make his life more difficult because he already has additional obligations to pay it off besides primary responsibility for the necessities of daily life.

That's the accurate explanation with stupid loans, something that you really can't afford, but you wanted to look like you can have it and only taking loans is the way to have it.

With a kind of mindset and without a stability of having a high-paying job, the chance of making more loans
to cover your debt is the next thing to expect.

You need to be more practical in terms of your lifestyle if you want to avoid being attached or addicted to
having loans.

Probably so, but those who do not save much less, and most likely these are those whose income is so low that it does not allow it, or those who are used to living on the principle that everyone buys a house, car, and so on on credit, in this case, monthly payments will require spending most of the income. I agree that all people are different, everyone sees the same situation differently, and what is good for one is already a problem for another.

I have seen people who experienced these and it is kind of sad that some who already have existing loans have no choice but to take a loan again just to pay those existing charges. It is not good to do this as you have the tendency to be stuck and be forcefully be in the loop of unending series of loan. But its still depends on the person doing this as I believe there is still way out. For those who have no choice but to sell their assets, it should be a wake up call to do something in order to stop their addiction with loans. So to answer the main question,  I think it depends on the situation whether you can consider one to be addicted to loan/debt since it varies based on how one pays the loan and how they managed the situation that they are into.

Establish a budget and stick to it consistently to end the debt cycle. If you're having trouble making payments, make debt repayment a priority and get in touch with your creditors. There are many financial institutions with possibilities for people in need. Discipline, preparation, and open communication are necessary for cycle-breaking.


Although it is now easier than ever to apply for a loan online, there are still some risks, such as high interest rates, that should be considered. Read the terms and conditions of any loans thoroughly, and only take out what you can afford to repay. Before turning to loans, look into alternate financial options. You may keep yourself out of a debt cycle by being proactive and aware of potential threats.

Well, is the theory that must be known before getting into a loan, then it is useless just when you say (very well) "it is drowning".

So the reality is that some need to go to the doctor because they are compulsive to get into debt and the solution is to take medication and pay off the debt.

In any case, it is always a very complex situation, in case TDC, there are statistics that say that 50% of debts are in innocuous things and that in themselves accumulate more expenses.

A classic is the purchase of a car, it is not only the debt of the car but also its maintenance, so, people have debts and decide to buy things to accumulate debt, instead of making new loans profitable. You do not need financial advice, but rather common sense.  :)

It actually depends on the characteristics/nature of the person about how to deal with the loans. Those who only think instantly to deal with their loans, probably take new loans to pay their existing loans. They assume they will be able to pay off all the loans someday when they get a lot of money. But the problem is that they don't know how and when to get a lot of money. They just take some loans without clear plans for repayment in the future. These types of people will easily get addicted to the loans and never get out of the debt/loan cycle.

But for the people who prefer to sell their assets to repay the loans, they won't get addicted to the loans/debt because they know that the loans don't give advantage for them. It just becomes a burden and potentially spends all of their wealth. So, they only take a loan if it is in a very very urgent situation.

Not only taking a loan to purchase a car, having enough savings to buy cars can also be irrational. Take me as an example, I bought a new SUV two years ago, a classic vehicle, very reliable and comfortable, paid with cash, one-time payment without any loan. This year I was thinking about purchasing another car simply because I thought it might be cool. However, considering the additional costs on maintainance, insurance, gas and others, I think this would be a bad idea to buy another car which I don't really need, although I can afford it. I am glad to be able to reflect on my unreasonable thoughts once a while, which helps me live a better life in general.

I agree with this, there are lots of people who borrow without not having a payment plan and they seem to be relying on luck in their lives who are not sure when the money will come to them and I have encountered that mindset a lot in my environment it is very sad and I don't know how to deal with people who have a borrowing mentality like that. No wonder every day someone comes to the neighbor's house to ask when he is paying off the debt and every day the debt collector is different, in other words the person borrows from more than one lender, which is very sad.

The mindset when borrowing should be like what you said, but most of those who have a dismissive nature don't care and let everything go under pressure from debt collectors, and what's worse, people who are already addicted to loans when they are billed for payment, they even scold their debt collectors.

Personally, I will set aside income to pay off the debt even though it is not paid off directly I will repay it even though this takes a while, if we do not get out of the vicious circle, the debt that we have is not decreasing, but increasing

Loans related to urgent needs for necessities must be prioritized and not to buy something unimportant, wise people will avoid loans/debt in any way unless there is no other way because of a financially critical condition but they will repay as soon as possible even though gradually. However, there are some people who are always in debt/loan because they are not trying to pay off the debt but apply for another loan to cover part of the previous loan, don't imitate that behavior because your life will always be tied to other people, so increase savings from work for future needs .

Of course you should. because the debt still has to be paid either slowly or quickly. And I hope you can immediately pay off every loan you have. In the past, I also had a loan and I struggled to pay it off. and last year I managed to pay it off. and when I am released from a loan I feel great freedom. In fact, I have become more passionate about working to make my business more advanced and growing rapidly. because sometimes when we have loan bills it can make our minds a little stressed and we can't think optimally. but when we have paid off everything, our minds become clear again and have a positive impact on everything we do.

yes, I agree that if the method used by someone like you mentioned is a vicious circle, he will never be separated from debt or loans.
someone who is addicted to debt, he will do anything to fulfill his desire, so that whatever he wants to do, he always thinks about how he can get a loan or owe it from another party. this is my friend's experience.
when he is unable to pay, he will stay away from the person who gave him a loan.

Thy say the borrower is a slave to the lender, so if you borrowed up to two to three  place you are  increase stress for your self.

Wont really be that stressful if you are really just that responsible on paying it back.This is why when you do took a loan then you should really be sure that you should have put it up on the right place or making use of it on something that would generate income but if you do take a loan just for the sake of buying something or speaking about wants then you would definitely be having a problem later on.
Its never been not that advisable on taking up some loan specially if those amounts arent really be used on something useful or really worth but if you do have the money that you are
expecting and able to pay it up on time then youre good but if not then dont tend to take up a loan or proceed on.

It depends on the reason why the loan was taken at whatever time it was taken. However, taking loans continuously to clear old debts or should I say, bad debts sometimes is not at all a good practice and should be avoided at any cost because it's never easy to get out of this cycle once you get stuck in it. If you have less money, you'll think that how will I repay and if you've got enough money to repay, you'll think that now I'm earning enough, so I'll repay slowly. That's not how a borrower should do, and at most try to clear his debts whenever he is capable of doing so, in order to get out of that situation and should also not take back a loan for whatever reason if he thinks he can manage the funds anyhow through any channel but not loan.

There are something we don't need to joke about. Taking loan and not paying back can be addictive and someone can inherited it from the gene of the parent. We need to know the root of our problem before trying hard to solve it. There are poor who would have inherited the spirited of owing debt and they will always seeing themselves taking loan and borrowing money without the urge to pay back even though they ahve the means and the source to pay back. People that are addicted to getting loan and not paying back are at there doom day.

Indeed, taking new loan to pay back previous ones, is a vicious cycle, however this issue can be resolved by preparing and implementing a long term workable plan to overcome this challenging situation. The following measures can help to address this issue:

- Cut down un-necessary expenses and prioritize to pay back loans.
- Negotiate the terms of payment with your creditors.
- Seek professional help to work out a payback plan which cab be implemented keeping in view your financial resources.

Indeed, if we will not take care of that debt, it will keep increasing as there's interest and without proper planning before you take that debt, you will end up loaning more to the point that you cannot pay it anymore.

You have to allocate portions of your salary to pay little by little to avoid loaning more to cover your first loan it
will not help but will be an additional problem when the loan generates corresponding interest.

Basically not all loans are bad, but I agree that if someone is trying to make a loan just to fulfill a lifestyle then that is the worst choice. Apart from all that, good or bad really depends on each person, but if it were me then I would not make a loan as long as I still have better options to choose from.

Due to the current economic problems, I tend to see some people take out loans to fulfill their luxurious lifestyle. I'm sure things like this will only burden their economy, especially if their income doesn't match their lifestyle needs. But I agree that loans can be made as long as you are in an urgent situation but you have a safe way to pay them off.

Loan is a curse as when you take loan you  are just frustrated as it's easy money and toy will spend or loose it more easily than hard money. So that's why I never take loan's etc. And also there are high interest rates on these loan's too. That's why I avoid them.

You can do that if you are in debt with someone who is not involved with any company. But if you are in debt with the company, you will be given special rules in terms of paying off your debt because the company will usually set a time for each person who is in debt to pay it off. Even though the way you are doing it also looks pretty good because it really can help you get out of debt problems, because you have been trying to get out of debt problems.

Once we are entangled with debt problems, it will be difficult for us to get out of that circle. Many people end up having to dig holes and close holes, even though that will be even more devastating later, because we can't get out of that problem when we keep taking new loans to pay off previous loans.
And when we are entangled, then there is one thing we can do, which is to take a risk by being honest with the company. Maybe we will be ashamed of other people because usually companies have field people who will come to our house to collect the clarity of our debts to them. What must be prepared here is a strong mentality, with good explanation I think the company will understand as long as we have good intentions to try to pay off our debt, even if the amount is not in accordance with the agreement we were able to pay beforehand.

Personally, I think the situation you described definitely seems like a vicious circle. Constantly borrowing money to pay off existing debts can lead to even more financial stress and potentially worsen the problem.

So, that one way to deal with this issue is to create a realistic budget and stick to it, so that you can better manage your finances and eventually get out of debt. Additionally, seeking professional financial advice or considering debt consolidation options might be helpful in breaking the cycle. Remember that, communication is key – talking to your creditors and explaining your situation may lead to more flexible payment options.

Right, good loan management is vital in avoiding loan loops. In some cases people are able to stop themselves from taking credits after income loss while being in need to pay the debts. While others rise the stakes... Also it depends on personal features of a person: if someone has no family, no children, so noone to be in charge in the end, then stake rise is really possible even after financial failure. And married people with children, with many relatives are eager to stop, since they risk not only their own finances if they get into troubles with loans.

This is a common problem to those who are addicted on loan, i have many neighbors here who do this kind of loaning, they make a loan everywhere and there is sometimes that they can't pay the interest of thier loan and they hide in other places, and in the other day the problem is becoming more bigger because the local government units will call them  to answer why they don't pay the loans, that is why before we decide we need to think if loaning for no reason is right or wrong.

Specially on talking about loan cycle on where paying up your previous loan with a new loan which is something that would really be putting you into big trouble.Honestly i did really be able to experience
on the same stuff on which i dont really have any choice because i do really need up to pay up something or specially when emergencies.There are really moments in life on which there's no way that
you could be able to avoid some conditions or scenarios where you do have no choice but to take up some loan which i dont see to be bad as always but make sure that you
would really be that responsible on repaying those amounts in time if you dont really like any further problems.

Yep. It is always difficult to deal with people who rely on luck to pay the loans. Sure, this type of people have no clear plan for repayment. I ever experienced it, my money never returned to me until now because of this type of people. Because of this experience, I become a bit traumatic to give loans to people. I prefer to give some money for free than give loans to people.

If you know someone who already borrows money from some people, be careful to give him loan money if he asks for a loan from you. It potentially becomes difficult to get back your money because he is stuck in a debt cycle. Just give him some money that you are willing to give for free.

As You said, you never had any loans in your life and that's so unbelievable (no offense) but AFAIK every single person at least borrows a pencil from another person and sometimes forgot to return it (it's also a type of taking a loan) what loan actually is? Borrowing some assets or goods to meet your emergent needs quickly. I hope you are considering these types of loans too. Plus in my life, I have taken a loan a lot of times, but never took a loan from a bank because I know they will not go easy on you in any condition, and in the economic condition we are facing, not a chance of mercy in delaying returns.

But i do take loans from my friends and relatives, mostly from friends because i know if i am at some point not able to return my loan then they can wait. But i have seen many people taking loans from friends and not returning them even after the end date. this really makes me angry that's not because they have less money, because they never make effort to return them. The best practice to deal with the debt cycle is

First-->to not take debt because this is an addiction and at the start, we take it lightly as I said borrowing a pencil is also debt and we should avoid that too.
Secondly-->we should take debts from our loved ones so that we don't have to worry about deadlines,
Thirdly-->always take a loan from a generous family even if they have less money but they will go easy on you because they know they can bear to lend their money.
Fourth-->you should not use loan money in any type of trading, investing, etc. actually there was a topic already discussed here that, Taking loan for investment can be life threatening (https://bitcointalk.org/index.php?topic=5445132.msg61921829#msg61921829). but i think using loan money in investing is much better than using it for personal use. But that depends on the need.
Fifth-->you have to get knowledge of how to break out of the debt cycle. How? By reading some books and making some strategies. following are some recommendable books but the overall result will be the same like every book will have the same result which i think is covered in My survival strategies in this harsh economic conditions (https://bitcointalk.org/index.php?topic=5441842.msg61841982#msg61841982) by Die_empty

• The Total Money Makeover: A Proven Plan for Financial Fitness" by Dave Ramsey
• Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence" by Vicki Robin and Joe Dominguez

there are many other books on the list but these are enough to get a progressive mindset plus if you follow every tip of Die_empty guy, then boom you are out of Debt cycle. (well, i hope so).

This is where people do make themselves get fall into debt pit on which they arent able to get out and making themselves put on huge trouble which it is really that a waste for you to keep on paying up interest just because you do keep on taking up some loan and paying it up to another and the thing continues round and round until you would be realizing that there's no way on getting out.

You should do your very best on avoiding loans as much as you could as long it isnt really that needed or necessary then it would be ideal you should skip out on getting one.
Always deal up with things according into your own budget and wont really be going overboard beyond on what you do have, with this then you are avoiding yourself into some potential problem in future to come.

I did it once and I regretted it, so the first loan I did became a valuable lesson in life not to do it again in the future.
The reasons people make when borrowing are certainly different, but most of them are due to an urgent need, so with the belief that they will be able to pay it off in the future, they choose to take out a loan, but in fact what we think doesn't always go according to what we plan.
I took a low interest loan with a short time, long story short because my loan resulted in a lot of my valuables having to be sold because at the time when I was due I had money but had other urgent needs so my finances were very messy.
it made experience for me not to make interest-bearing and maturity loans again.

We can't predict what future will bring us, even you think you have a secure job and you can pay your loans if there's something happen and the good example is the pandemic.

You will lose your job and even there's a extension with your loans you still need to pay it and without any
income it will keep increasing because of the interest.

It's hard to get out of that zone, debt can make a person change significantly. They always use the same way to pay off their debts, debt to pay off debts is not a way out, but only a temporary comfort zone. I agree with you, it's better to give for free than to have to lend it, because this is bound by a promise and if someone can't keep their promise to pay their debts then we will feel disappointed, so there will be no one else to trust.

I generally don't like bank loans. Because I know that once I get involved in debt, it will be difficult to control. Moreover, if the loan is not paid, the debt burden increases. Which can make people's lives more miserable. If someone is in such a problem, he should by all means borrow money from any other source like friends or relatives to collect necessary money and pay off the bank loan. When the bank loan is paid off, he will gradually become normal. However, before taking any loan, the borrower must consider whether he has the ability to repay the loan. Otherwise no one should take any loan.

First of all, unless I am in too much danger, I will not take the loan because it is very difficult to carry around with this debt burden. Borrowing is my last resort. I will borrow when I realize I have no choice but to borrow. And after accepting the loan I will try to repay the loan within the time given by the lender. Paying off the debt will require me to focus on more work and work longer hours than before so that I can pay off my debts on time. Because if I can't pay the loan on time, I may face a lot of pressure from the lender or the bank, that's why if I ever have such a situation, I will definitely try to pay the loan as soon as possible.

Never that i took loan if not for emergency purposes in which only takes place in family loan from office.
But if for other? Nope and never matr.

For me? This is addicted and yeah so many people that comes for loan and not keeping their living because of debt.

If you take a loan for positive things, I think it doesn't really matter and whether you are addicted or not it all depends on the needs you need, as long as it is used for important things.
but if you take a loan for things that aren't important, I don't think it will be addictive, quite the opposite, because there is a very heavy feeling when paying it off.

so far I have also taken loans for urgent needs and I have tried hard to avoid that, as long as I can handle it, it is better not to be in debt.

That's right, I myself will only make loans when I experience unforeseen things and need fast funds. But it's not uncommon for me to find those who like to be in debt, then their lives depend only on being in debt. They feel comfortable being in that position because they can get money easily just by being in debt, most of them pay off their debts by taking on more debt. They are already stuck in the zone and the cycle will continue until they realize that the debt has accumulated and stress.

I thought that only gambling could be addictive, but it wasn't. Having savings or starting to save will actually really help someone when experiencing unexpected things compared to having to borrow because there are many negative factors that we will feel when we have a lot of debt, one of which is that the mind will always be depressed, life will never be calm and the environment can change, people are reluctant to make friends because they are afraid that we will borrow.

It's a never ending cycle if you don't have any method to actually pay the "actual debt". The closest you can get for getting loan is probably from your close relatives or your family, so you won't get any "big" trouble. But still it's mandatory to actually pay the loan as a normal human being. If I was at that position, I would borrow from only one person so I can manage my financials. It's not really healthy to be in debt to multiple person.

It should be remembered that even though this can still be done, when things repeat themselves, because it seems like there is a handle when something is urgent and you immediately borrow money because the previous thought was like that, gradually this is still a big risk, I think.
It's not to be blamed either if there really is an urgent need and it's the only last resort to save them then they can still borrow money but if this keeps happening isn't this the same as not learning from previous conditions.
I still feel that as long as I can not borrow, whether it's important or not, then why not do it like that instead of continuing to force myself into loans which in the end make myself miserable.

Maybe taking a loan can be addictive but there is no proof for this if actually it leads to addiction. I think this can be linked to spirited effect where someone will be inflicted with the spirit of borrowing money from people without having the curiosity to pay back. People that like borrowing and that don't pay can be linked to spirit influence maybe as a result of the mistake there parent might have made before they are born. Normally get loan can make us indepted to the person that we get the loan from, which can urge us to quickly want to pay the loan without crazy excuses.

Taking a loan can lead to addiction but not in all cases, there are so many investors today, who borrow money to finance the project after that they will pay the money and keep the profit from the business. The loan itself is not bad, what is been taken or used for is what matter.

It all really depends on what goals you have when applying for a loan. If it's for a business where we are sure of the level of success of the business to be run, maybe taking out a loan can actually help the business more and get maximum profits. it's just that if the initial intention of making a loan is only to fulfill desires such as buying luxury goods or the latest car or the latest cell phone and the like which are actually not for business needs and other urgent matters then all of that is really not good and it's better not to take a loan for all that. so basically it all depends on the particular situation.

There is no case that justifies a loan addict, and not all debtors are addicts. Because I take a one-time loan today to finance my need doesn't make me a loan addict. You can call someone a loan addict if the person is already in the habit of taking loans often without control. Every now and then they just walk up to someone and take a loan even for things that actually aren't worth it.

Their are some form of investment that taking a loan is actually highly discouraged, because those loans can be the beginning of your entire business down fall. In a fresh business which one is still starting with little to know idea on how the business works, in such kind of business the owner is not suppose to take a loan, because you as the business owner all you have is a believe and some form of untested business plan and assumption to repay back a loan, and when this your plans fails you, you then become a loan defaulter, before you know it, you are already looking for a way to pay back the loan, is either you shutdown your business or you borrow form someone else to pay back an existing loan.

Come on guys this isn't gambling...Loans don't get to addiction if you are going to pay them back, besides you need to have a plan on how to payback before you even plan on how to spend it!

If anything, loans are for disciplined users and not everyone, undisciplined users who get loans and dont playback usually get punished but losing their collateral or get blacklisted for any new loans and you wouldn't want this to go this way.

well said!
Just to add on what's been said, the biggest economies in the world do get loans too which should tell you that loans aren't really a bad thing not until you default...And problems arise when you do not use funds for intended purposes which means finding funds twice, first for initial plan and second to payback!

I don't thinking taking loans could end to an addiction. If we look at the frequency in which addicted gamblers gamble or heavy alcoholics drinks and use that to compare with the extent at which even the worst person or individual to have been associated with taking loans, there's going to be a huge gap between these human behaviour.

Loans comes with a sense of responsibility, either you accept it or not. Your conscious of the fact that, your supposed to refund this money, the more you hold it, the more interest on it and the more loan you take from other companies, the more your chances of taking further loans are reduced and you could get caught at anytime.

That doesn't make a better addiction. Not like any is good but the fact that one can take an addiction out of taking loans is almost zero.

Taking a loan isnt something that could really lead into some addiction because taking a loan isnt something that would be that so simple basing up on the requirements and qualifications before you would be granted out.
It is just that people would really be that ending up on a disaster on the time that they would really that irresponsible on not to paying back with those loans.Taking some loans isnt bad as long you do mind on repaying them. It is really just that there are people who arent really that good paying. About on using up those loaned amounts then it would really be varying whether you would be making or putting it on an investment or would really be that using it on buying something which it isnt beneficial. Well its a personal choice since its your money that you had borrowed and as long you are responsible on paying it back then
i dont really see any problems into this. Just make it sure that you wouldnt really be piling up those loans because its the main risks and problem that lies ahead if things got worst.

But there are really people that are doing this; they are saying that it is a gift for themselves, but in a year they bought tons of expensive stuff. Also, there are people who take out loans just to pay their debts, which is also not good, but again, that is their choice, as life is really difficult and once they take out a loan, they can't get out as it will pile up, and then the source of income is not enough. Not all will take a loan for business; there are people struggling in life, which is why they don't have a choice.

That depends on the person op. Some people are really good at repaying loans without any issues(Like me) while some others don't repay loans on time due to reasons like money issues, laziness etc which messes up their credit rating.

Both categories of people get addicted to taking loans sometimes, but this leads to horrible outcomes only for the latter category.

Personally, I am not addicted to taking loans since I don't really like them and take advantage of them when absolutely necessary. Also, I tend to take small amount loans more often when compared to big amount loans.

I think it is possible for individuals to become addicted to taking out loans. The factors could affect it are financial insecurity, a desire for instant gratification, or poor financial management skills. Just like any other addiction, the consequences of a loan addiction can be severe and long-lasting. Individuals who are addicted to taking out loans may find themselves in a cycle of debt that they cannot escape. This cycle can lead to financial ruin, damaged credit scores and even bankruptcy. The stress and anxiety that come with mounting debt can take a serious toll on an individuals mental health.

In my opinion, the tendency to become addicted to borrowing money usually applies to individuals whose lifestyles exceed their monthly income. Every month, they have to borrow money to purchase their desired targets, even though their economic capacity is inadequate for such expenses.

If their targets are essential necessities like food, housing, or everyday clothing, that's not a problem. However, if they accumulate debt based on style alone, the cycle continues, and the debt will never cease until fully repaid, even if they were to win a large lottery prize.

Their life becomes stressful when there is no longer an opportunity to borrow. This often leads to negative activities that have the potential to engage in criminal behavior.

One of the principles of life that must be remembered is that no matter what happens, don't get into debt. This affects our lives to be better than others, making us more able to work hard. Debt behavior is also evidence of mental weakness.

Better change your mindset now. Don't have to owe everything you need, debt is everywhere, bank pawnshops. Buying a cell phone in debt, buying furniture, lifestyle, etc. in debt, even primary needs such as schooling, etc. are in debt. As much as possible, plan as early as possible.

Let's compare, examples of children's school needs.
We use the savings method.
- We have predicted, maybe in the next 6 or 7 months our children will be at school. With an estimated need of $400 to $500
- Yes targeted, you need to save at least $80 or $90 per month
-Must be consistent, savings should not be taken
- it's good to save money. It's up to you to save at the beginning, middle, or end of the month. It's up to you, the important thing is to save at least $ 80 or $ 90
- never late, nothing collected. Who collects himself
-If, for example, on D-day it turns out that the school needs less than $ 500, it is better if the excess savings can be used for other needs
-Even if you don't have enough savings, that's okay, because you don't need as much as you don't have any savings at all

Try the debt method
For example, if you owe $500,
- subject to fines if payment is past due
-To be billed if late, terrorized
-total payment of more than $ 500 that we got. Maybe up to $600
-$100 loss
-every month restless

Note: Debt is allowed, but only for large amounts. It's like building a house, business capital. If so, maybe that's understandable.

Many people are ultimately unable to pay because their income is not greater than the installments they have to pay. Or that previously they had more than enough income to pay off the loan, they had to experience something bad so they no longer have any income.
Before taking a loan, we must consider very well whether we will be able to pay or not. and also we have to see what the loan money is for, whether it is for things that are not important, or for important things that are very urgent so that we really have to take out a loan.
If the money we borrow is for things that are not important, that is a very unwise decision.

Loans are certainly bad because they have to pay interest, but if the loan is used for investment bitcoin then it is a good loan, profit opportunities for up to 100% or more can be easily obtained before a year because the halving day that occurred in early 2024 will make a price surge so we can pay off the loan

Your way of thinking really doesn't make sense to me because this is very strange when you say about 100% profit but it's still not certain that it can come 100% on the investment we make. Besides that, what makes you believe in a place that is willing to give a loan for one year for investment? I don't think there are stupid moneylenders who want to give loans to those who have reasons for investment, because the borrowers also won't immediately believe in the halving that you said uncertainly.

In many countries, consumer loans are actually secured by collateral or require a guarantor. These measures provide lenders with some level of security in the event that the borrower defaults on the loan. On the other hand, using cash for spending and being cautious with credit card debt are personal preferences that can help individuals manage their finances responsibly. Credit cards, when used wisely, can offer convenience and certain benefits, but it's important to use them within one's means and avoid accumulating high-interest debt. So it's wise to avoid borrowing from "fast loan" companies, as they often charge exorbitant interest rates and fees.

You could say that taking a loan is like addiction because it makes everyone lazy, especially now that there are online loan applications that make it easy, only with an identity then selfie and receiving a video call from the lender, we can get the desired loan amount, of course the loan is easier usually the higher the interest to be paid.

You should look at the problem more broadly, not just attribute it to such negative circumstances. Think about financial loans to help businesses grow, the success of that business or its failure is an all-encompassing issue and not the only factor mentioned. Just like in everyday life, but no loans to support the fields of health, education, ... are implemented to improve the quality of people's lives. Not only seeing that many people abuse it to rely on, and over time that rejection in society is obvious, responsible for each of their actions in life. Like this title, I can only smile because this is just one person's personal opinion, and if they are in different positions, they will have different thoughts.

Everybody should think about taking out loans like that, borrowing money doesn't make us richer, it only makes our liabilities grow. There are some situations where taking out loans are necessary, for example if we need short term money for medical reasons or for urgent repairs at our house or apartment. These are all necessary things and if we don't have any other form of funding then taking out a loan is the last resort. We need to be focused on how long repayment is going to be and how much money we have to pay each month. With that in mind it should be a negative experience and we shouldn't become addicted to it. Addictions usually come through positive emotional responses we get from experiences, which is not going to be the case with a loan that we have to repay for the next 5-10 years.

Some people take their loans to investment which is risky since there would be always a risk involved when you invest your assets especially when you invest the money that you can't afford to lose. And I'm with you, taking loans for emergency purposes could be a good decision as long as you know what would be the impact of taking a long to your everyday needs since you have bills to pay. It would be just a burden to people if the loans payment would be years despite the long payment and small since interest would be always applied to it. Before taking a loan check if you could repay it in just a short time and wouldn't affect your living.

What I learned about debt can be addiction, life is difficult without debt. But with good management and we are willing to try hard to resist the urge, it can be done. But what happens a lot is that they shoot the target too far, don't want to research it first and force it by getting big debts, starting from banks, fast loan companies, to neighbors. There are some people I see who take debt easily, are unable to pay it so they are caught in a vicious circle, as you say, dig a hole, close a hole in the language of the term.

Yes, I think he is also wrong when he says that debt for bitcoin investment is better because it can make 100% profit. It's true that bitcoin investment is good but not with debt, does he not think about having to pay the installments every month that he lends. where did he get the money to pay the installments when he said he invested in bitcoin for a year?

Actually I also never underestimate a person's ability to pay debts because when he starts to owe, of course he knows how to pay with the ability that he has himself. But when the debt is made only to invest with the expectation of an uncertain profit, in my opinion it is not suitable because he must have another business to be able to pay off the debt.

And maybe he has another business for this so he tries to give that kind of advice to everyone here even though in my opinion it is still not suitable because considering the risks are very disproportionate to what he is doing. Even though there are so many other ways that he can take if he really wants to invest in Bitcoin without having to get himself into debt.

This is very dangerous, even if you want to borrow money, my advice is never to borrow through online loans because the interest is very high. Even if you are forced to borrow money, I suggest borrowing from a bank.

Because I have experience borrowing funds online, when it's urgent and there's a need. Even to increase my business capital, I sometimes apply for a loan, everything goes smoothly, as long as we pay it on time. but obviously the interest is quite large and if we pay late we will be terrorized continuously.

This online loan should be immediately put in order in every country. because many victims have committed suicide as a result of online loans, pity them. this is called solving problems with problems because they have to pay debts by borrowing again.

Sad if someone committed suicide because of debt in online loans, if we are not strong mentally then don't ever take online loans, I have a unique real experience, I have friends who nearly 4 years unemployed and only rely on online loans to live, he applied for more online loans Of the 30 times and never pay, the thing he does is simple that is not concerned with the telephone or terror from the online lender.

And if you buy bitcoin with credit money, repay a loan for a year or two, and the price of bitcoin will fall all this time, and in the end it turns out that you bought bitcoin for more than you could buy.

If you have the opportunity to pay it from your salary, and otherwise there is simply no point in taking a loan, then in the end you will be able to pay off the loan, but it will be a game of luck, lucky or unlucky.

This could have been thought about a year ago, and now when the market is in an uptrend and we are given positive news, which may imply the growth of bitcoin, this suggests that a big growth will begin now, but sometimes everything is not as we expect and still, it is worth taking into account that bitcoin has already made x2 from the bottom.

Taking out a loan or incurring debt can become a problematic behavior if it becomes compulsive and interferes with an individual's ability to manage their finances responsibly. This behavior is commonly referred to as debt addiction or credit addiction. Debt addiction can manifest including constantly taking out new loans to pay off existing debts, using credit cards to make purchases that cannot be afforded, and feeling a sense of euphoria or relief when taking out a loan or incurring debt. Like any addiction debt addiction can have negative consequences on an individual's life. It can lead to financial instability, damage credit scores and cause stress and anxiety. Individuals with debt addiction may struggle to meet their basic needs, such as paying for housing and food.

And I think today many have this kind of addiction. Not for using a credit card or anything like that. but at this time there are indeed many loan platforms that offer loans with a fast process without even collateral. And many young people are entangled with it. But as long as they have an amount of income that can cover each installment of the debt, maybe it's not a problem. but still it is not good to become a habit. because if they are addicted then they will be difficult to stop. Even anxiety and insomnia can come to those who are worried about loans that must be repaid while they have not had the money to pay them off.

By taking loan temporary you can get good advantages at the same time a large number of people who suffer of it. If you don't need much then no one should not take loan. When a person does not get any support from any side then he takes loan. But nowadays there are some people who consider taking loans as very simple. Some consider making loans a part of monthly work.
After taking the loan when it comes time to repay, the extra money levied on it becomes a bigger burden. In a word, loan create big problem in leading normal life.

Nicely and coherently written.

What most of these debt addicted individuals fail for realize is that, the profit on these loans are actually what could have servers or helped by some means in the course of their financial stability.

You end up spending a future money on current issues. What happens when the future hits you with what it’s got? You end up taking more loans and incurring more debts with profits on them.

It’s a sad way to live.

In my opinion, the thing that makes anyone look addicted when taking a loan is how easy it is to take a loan. If 10 years ago we took a loan, it took a long process to get collateral, so now we only take selfies while holding our identity, so the loan amount we apply for will be accepted.

It's easy to take a loan, but it's hard to pay it off, but talking about addiction or not, it all comes back to each other, and in my opinion, if you take a loan for something that's important, it won't be addictive, and if you take a loan for something that's not important, it's likely will continue to do so when his desire for something arises and wants to fulfill it.

I think people take loan when there is no other way of getting money and when an individual needs money for crucial activities of life then taking loan is not a bad thing. Everyone at any stage of life requires money for necessary things which is not available that time so for this purpose everyone prefer to take loan.

Taking loan is not a bad thing but if you cannot return the previous amount and regularly Taking loan from others then this behavior is bad. A person should only take loan if he is sure that during certain time he will return this cash to the owner if a person continuously take loan from two persons and Didn't return on time then it should be keep in mind that he will also not return the loan for third person.

Well right. This convenience is indeed the trigger for the increasing number of people involved in loans at this time. And I think a lot of them are not actually addicted but they also want to get out of the loan cycle. it's just that it's not easy to pay off every loan if there hasn't been an increase in the amount of income one has. so this is where it is important to increase income by working on the side.

Taking a loan might seem addictive due to the convenience, but many folks are in it just to break free from the loan cycle. It's tough to pay off loans without a bump in income, right? Working on the side can be a game-changer.

People who get loans don't and can't really afford to find other sources of income because they either have a limited skill or network so they have a hard time finding other means of making money. Sure it's a game changer as you'd like to say but each person have difficulties. Loan cycle is a depressing thing to be trapped in but remember that it's easy to get out of it if you make some sacrifices in your lifestyle but that gets harder if you've got a family to raise.

Here's how to manage debt, based on someone I know's experience. First, prioritize your debts. Tackle those with higher interest rates or legal repercussions, like bank loans, before addressing personal loans. Increase your income or, at least, reduce expenses by focusing on basic necessities. In emergencies, consider borrowing from someone who understands your situation and can offer a flexible repayment schedule. Don't run away from debt collectors. Face them honestly, explain your situation, and let them know you're actively working on repayment. Debt can be stressful, so minimizing it is wise, especially for non-essential purchases beyond your means.

Actually im really into this condition on which it is really that suffering into tons of loans or simply debts. Recovery is really hard specially if you do have that single income source and there's no way that you could really be able to enhance it out on a short time or finding another income source. This is why it would really be that just that depending on how well  you would really be managing your funds.
Basing up into the things you had mentioned about management on which one should really be that solved out first then it would be that wise on getting those bigger ones first so that on the time that you do able to solve out the biggest then you would be going into the next one, and since you are wary that you are able  to clear out that one then it would be just give out that kind of perseverance on doing into the next.

Im actually in the middle of resolving out by debt issues, yes it isnt simple but doesnt mean that it would really be that impossible. It is really jus that there are really instances or situations in life on
which you dont able to expect on which it could derailed you up along the way.

Well, I experienced and am experiencing this problem right now when it comes to loans or debt. Currently,  I have quite a large amount of debt, and I'm paying it little by little or when the payment is due, before or on time. The thing is, because of trading, I pushed to do loans because I made one mistake that cost me a lot and tried to recover it, but sadly, it didn't go well. That's why I end up using loan apps to have money when I'm short financially. What is the lesson here? Well, despite having debt through loans, I didn't miss any payment date because I knew the consequences of delayed payment. It would make the debt bigger even more, so as much as I could, I did my best to pay on time. Where do I get the money? Well,  I have a stable job and found other side hustles and crypto investments. Right now, I am trading because I need to pay all my debts first.

Well you are right that the main point that makes people feel attracted or increasingly interested in taking loans because of the convenience so of course this advantage can make someone even more addicted, debt has always been a complicated problem in people's lives but the problem is that they don't look for ways to get out of the cycle and instead think of taking loans to pay off debts and this makes them finally stuck in debt.

One of the most effective  ways is to have good management in terms of finances such as reducing expenses that are not really needed and saving some to save with the aim of paying off the debt they have taken before and another way is as you said that adding a part-time job is one of the solutions that is quite effective to get out of this problem because of the increase in income that can be used to pay off debt.

Well this is very common and I have a much more worst scenario to tell you that happened here in my place, wherein my neighbor have had their previous debt and to repay they have to get a loan on other lending company to pay the previous debt and then find again another lending company to pay for that previous debt from the lending company and that keeps on circling over and over again up until now. That is how it works here like never ending loan just to repay the previous debt they have and unfortunately majority of these people do that here. The only problem here is that they don't have the ability to repay their debt because they don't have stable job but I am also wondering why these lending companies still approve their application as they all undergo credit investigation before lending any money.

I also have debt but I am sure I am able to repay it soon without using a never ending loan just like my neighborhood.