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In the topic I covered today, let's talk together about the idea of debt, why it is bad for the majority, and why it is used as a tool for the advancement of the few. If we observe people in debt, it's like your friend who borrows a cellphone, your neighbor who owes a motorcycle and vehicle, and the person you know who borrows to build their house. We can notice and see that most of them are not happy. Because instead of enjoying the money owed, it becomes a burden because it is automatically deducted from their wages at work. And this is often the reality of a person's life in debt.

Even so, using debt is not bad at any time. It is true that many people have become miserable because of debt, but if you are strategic and use it to build an asset, it can help you get rich or get out of life. And this is possible. In fact, all the successful entrepreneurs we know use debt to grow their businesses so they can maintain their lifestyle, and this is called leverage. Instead of using your own money to build assets, you will use other people's money as capital. Instead of waiting for a short period of time, you can start now with just your simple idea and the money of other people.

Let's discuss this matter, friends. If others don't already know, there are two types of debt. This is bad debt, and the second is good debt. And we know that this concept was explained by Robert Kiyosaki.

* Bad debt: This is what makes a person suffer, because it is the things that give us liabilities or the ones that decrease in value, such as gadgets and cars. And the common problem with these loans is that you will pay them with high interest.

* Good debt: this is the type of debt that will make a person rich. Or else you will also earn money because, instead of using it for your needs, you will use it to build an asset. Which, if you handle it properly, can give you extra income.

So that we can give more clarity to good debt, I will give an example: You want to build your own business; you have a product, a business plan, and a marketing strategy. But the problem is that you lack capital. And the amount you need is $1,000. So what you did was share this idea with friends who you think have the potential to become investors. You explained it well, presented it well, and they liked it and were willing to invest. And you convinced your friend to borrow money, and you will pay him back in two years with interest. Then you started your business immediately; people liked it, and it became profitable immediately in the first year. It gives you constant income, and it continues to grow.

After two years, you have paid your friend. And your business just keeps growing. And it all started with an idea. Your idea is to build a business, and you use other people's resources as a tool to build your own assets. But it's an important reminder that you also need to be doubly careful when using debt. Although this is a good tool, you must work yourself out to handle it properly.

what I means you must know how to handle money. Must have skills, such as COMMUNICATION, LEADERSHIP, NEGOTIATION, SELLING and INTRAPERSONAL. Because if you borrow money and use it in your business, it doesn't mean that everything will be okay immediately and your business will grow automatically. It's just that not every time the weather agrees with what you want to happen in your life.

That's right, someone who takes out a loan to start a business must be able to handle their money well, by using it in a controlled manner so that it doesn't just go to waste. Also, in my opinion, borrowing money to start a business is not wrong, because you have to have the courage to take action, even by borrowing money for capital to start a business. someone who has an idea to start a business but they don't have enough money to run their idea into a business and they take out a loan to start the business in my opinion they are people who dare to take action, because they dare to take risks to become better. There are people who stop when they run out of capital to start a business, because they don't dare to take risks so they prefer to quit.

I personally prefer to take out a loan if I don't have enough money to start a business, because in my opinion we should have the courage to move forward, even though there are risks, but in my opinion that doesn't make me stop there. Dare to take risks is an action that is not wrong, because at least if we fail, we have tried and done our best. By taking out a loan to start a business, it means we have to manage it well so we can produce and pay off the debt we have. Regarding the risks, the important thing is that we have the courage to move forward, which is good.

leveraging is not creating asset or creating wealth
leveraging is gambling.. and there are losers when people leverage

leveraging is only good if you win.. but always bad for all other circumstances

99% of real entrepreneurs (not ticktok influencers) gain capital from investors. that invest in a business for a percentage ownership of the business.. they then get returns on the success of the business at a rate of the profits of the % share they invested of the company

this is not leveraging, this is straight up normal investing

if you are starting a business but not taking a loan.. but instead (as op describes) ask a friend/neighbour to take out a loan ("convince friend to borrow money"), you are doing a disservice to your friend. because if the business fails. not only do they not get ROI from the investment. but the loan company are then chasing after your friend for the debt you convinced him to take up.. so double harm on both sides of the rotten deal

Debt is not something good in a general perspective do let's not make it appears as if one is bad and the other is good, most people that have been into debt have always lamented of why they took the decision at the first place, we don't seems to understand the comfort we have without being in debt like when we out ourselves in debt, many use to struggle before they can make the repayment of their debt back to their creditors, because it's never easy to pay back debt except by grace.

I agree with that, because being in debt is not always bad, depending on why we take out a loan and what we use the money for. If the designation is clear, to start a business for example, because you lack capital so inevitably you have to take a loan, so that what you planned before can be realized immediately and you can start to do business.

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However, it is careless.... if we take loans for things that are less important, such as to fulfill your desire to have a luxury house. Even though you also have a house. it's just that the house you have is very simple.
That is careless, because it will only add to your life burden, you live in a luxurious house but your life is so miserable. because you have to think about credit every month.

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So in conclusion, when we take out a loan, before doing so, we must have a clear reason and designation. So that we are not too confused in paying installments every month. Because the money you borrow, can make money back.

I am not comfortable with loans because no business is predictable. Natural disasters, changes in government policies and conflicts could lead to the collapse of any business and the banks will not take any excuse when they come to ask for payback. They will claim the collateral making you lose more than you bargained. I prefer to start a business with the funds available and gradually grow or expand the business. But loans could be of great importance, especially to businessmen with good business plans and the requisite skills to run a business.

In my country, there has been an increase in a loan system called "easy buy". People can now buy phones, gadgets and even designer clothes on credit. I find it unreasonable to access loans just because you want to change a phone, car or television. All these items are fragile and decrease in value drastically. But I might consider taking a soft loan to buy a house because it will help me save more money.      

The example you gave shows exactly how loans taken from the bank or from family and friends is being put to good and proper use.
Good debt and bad debt? You don’t have bad debts as a borrower, you incur bad debts as a lender giving out loans that won’t be paid back. That’s bad debt.
Loans are majorly taken out to help solve an emergency or for business purposes. If you end up spending the loan on irrelevant things, that’s a choice purposefully made knowing the loan has to be paid back.

if anyone says this to you:
"yo bro i wanna start a business. please go to the bank, get a loan $1k, then give me that money, ill pay you back+$100"

..RUN!

think about it.
if the amount is $1k. and the guy says he can pay you back $1100 in a year, why hasnt he gone to the bank himself to get a $1k loan with a $1050 payback.. why is he not taking the bank risk of 5% interest himself but "promising" you 10% if you take on the debt risk with the bank

also note while he runs the business for a year promising you $1100 at year end. you are paying $87.50 back to the bank each month to pay back the bank $1050 by year end. if you skip 3months of repayments the bank call YOU out and make demands.. and the bank wont accept the excuse "please wait another 9 months my buddy made a promise he will pay me"

remind yourself again why your buddy wont approach a bank himself.

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if your buddy has not explained how every penny of the $1000 will be used. how it will make the business run better compared to not having the $1000.
if your buddy says he will take a salary every month, but wants you to wait until the year ends. just say no. you come first
if you are not getting paid before he does.. run

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banks have experience of looking over business proposals. if they turned him down.. get curious. there must be a reason

There is too much talk about Debt and its impact on life with in different regions we have different view about this all because in few countries peoples don't like this and feel this is not good for anything but still in few countries we have good things about this all which bring good changes but for this all we need to make a solid strategy which helps us for having better use of this all without any strategy and pre-planning things can go into wrong way, and you can go into deep trouble.

Even I am personally having good changes with my debits and this make me to do many things which were never been possible because I have short of money for long time so mostly I suggest just go ahead, but you need to think about this before jumping and having better use of this because many times we have terrible impact as well, but this all depends on the user how he is going to do this all.

It is true a loan you take can be used to build your wealth, however if it was possible to avoid asking for a loan we should take that path as taking a loan will in most cases be an inferior solution than just using your own money, as in the example given by the OP the business idea became a success, but as we know most businesses go bankrupt in just a few years and if you asked for a loan to start that business not only you will not have it anymore but now you will owe a lot of money that you now need to pay up.

* Good debt: this is the type of debt that will make a person rich. Or else you will also earn money because, instead of using it for your needs, you will use it to build an asset. Which, if you handle it properly, can give you extra income.

Basing up on your post above ^^^
This is what im trying to achieve again considering that i had made out some bad decisions in the past on which i've taken up some loan but all of those amounts been used into such waste
like buying up something which isnt useful or not really considering on building some business but rather i did purchase a car. Sooner or later you would really be able to realize
that the decisions you had made is really that completely wrong.

Now that im trying to recover out on which its never been simple but it isnt really that impossible if you are really just that eager on doing things on which
you are really serious on trying out to achieve.

In real life this will never work unless you are rich and have the contact to grow your business, let's see what is good debt, anything that is utilized that may give potential returns but how rich makes the most out of it while an average joe who wanted to quit job and start their own business by taking loan end up broke after few years.

Rich people have the capital but they simply don't use it, they use it to pay back the debt in case if their plan goes wrong ways but an average Joe will never have backup resources to pay back and then end up defaulting on the loan.

I always get to see this topic being discussed by many content creators that are into finance and I find them helpful especially for topics that many people don't understand like this.

There is a common denominator for most people especially this holiday season. A gift should be given to someone because it is a norm during this time but I don't do it anymore because I have to take care of myself as well. These gifts, gadgets and other depreciating things must only be bought if you need them, no one stops you from buying these things but make sure that you need them and you thought of it for so many times before purchasing.

It's easy to say about using good debts but someone may have the intention of having good debt but may fail into establishing the business that's mostly for expansion. Don't get into debt as for me, it is better.

now that i blasted all the bad debt examples in previous post..

good debt is ONLY IF the use of the money is well planned out and accounted for, actually utilised and optimised to expand business prospects to generate more income than the repayments to also leave the business in a sustainable state after repayments

just asking for debt money does not guarantee business growth, sustainability, success
before even asking for money, look at what is needed, optimise things to reduce the needs, then prioritise what remaining needs money needs togo to, then ask for the least amount needed. that way less then is needed to be repaid

borrowing capital to open a business or business makes sense, because there are people who have an idea for a business but don't have enough money to start it, they can take out a loan to run it, but as long as they run it well and it must produce results, because a business basically has to produce its own profits. and people who borrow money to open a business are only certain people anyway because people like this tend to be people who have strong determination because they dare to take out a loan to run their business idea.
it's not wrong if they borrow money to open a business, because if they are sure that what they are going to do can be profitable, it doesn't matter, I support this. because this also opens someone up to be more courageous in taking steps, on the other hand there are definitely risks but as I said only someone who has a strong determination to do this because rarely do people dare to do something like this which is very risky. the key is confidence. 8)

Debt is not bad at all and seriously, I also started my trading journey from a debt and since then I was able to multiply that money and repay my debt without worrying for the interest. Though there are times that debt becomes more of a problem than it helps and the reason for that is because we are not able to identify its purpose.

Bank debt is quiet high when it comes to their interest, so make sure you do the math and make sure that if you are going to use it for a business or something that will make you money, it will cover the premium and the interest as well.

This has been said a million times, but its easier said and done. I have to say its not an easy thing to just get debt and acquire assets with that debt, it is definitely not a horrible idea but not that easy neither. I could say that I have a lot of "assets" in my house, if you consider ps5 or an iPad and what not as assets, after all in my nation they do not lose that much value, so you make a profit when you buy one and sell one 8 months later. But that is of course not what asset is, and I do agree that one should do that, but I just can't do it all that easily, it takes time, first you need to pay for your medical bill debt, and then school debt, and then credit card debt you needed to make to live, all those things get on top of each other and give you no chance to get debt for other reasons.

Something bad should not be considered as good. Debt in any form is not advisable to anyone. I have been in that state only a few people can pay their debt even if they get back the money after the period. I believe paying off debt is an individual behavior. Many people find it difficult to pay off their debt. These set of persons in my opinion lack trust and should be allowed to take loans.

I'm still very surprised by people who can manage their debt well, they manage their debt smartly so that it doesn't affect the finances they have, if we look at a country, there are still many countries that routinely create debt for their country even to the point of entering in large amounts, debt will be good if the borrower is able to pay it on time, and is also able to be careful in managing it. for me, managing debt is a job that is not easy but not so difficult. Apart from that, there are some rich people who say that those who don't dare to take out loans will continue to be poor.

Yeah, I heard this from Robert himself and I will say that it's very controversial, what works for him might not work for everyone. And I will agree that this is just like gambler per se, wherein you borrow some money from your friends and go on put a business or buy a house as a investment and wait for a couple of years to make money.

But still though, how can you pay it back when you are just starting your business? For sure once you borrowed that money, you have to pay it back the soonest as it will accrued big interest overtime. So it's a big risk in my opinion.

Immediately I saw the title of your thread, I knew you'll mention Robert Kiyosaki, I'm a big fan of his content especially when it comes to debt, assets and liability. The reason many people are advices to avoid debts is because many people don't have the attributes that entrepreneurs have to use other people money effectively or would I say using debts very well. If the average person gets into debts they can't come out of it because they use debts to buy liability either knowingly or unknowingly. People use debts to buy houss,(which are liability but people think they're assets but this is a topic for another day. Note I'm referring to personal homes and not rental houses).

Since people don't have the ability to use debts for good, it's better they get avoided. If all the active users of the forum were put into debts, many won't be able to get out of it so instead of leaning how to use it, avoid it. You can make it without debts as that's not a path for everybody to follow. Those who know how to do it are allowed to do and if you want to learn then you need external guidance and not just by reading on the forum because it's a very risky thing to do. It's this same debts that has taken alot of entrepreneur of business.

An example is SBF of FTX that tried to use customers funds (others money, AKA Good debts) but couldn't use it effectively or used it wrongly and got caught slacking that his company and reputation is paying for that. Knowing how to use debts to your advantage is a good attributes to an entrepreneur and puts you ahead of others so it's something worth learning but also not for everyone.

Having good debts are easy to establish when you have actual assets that the banks will see for you to use it as a collateral. But if you're starting from zero, it's not advisable to take loans and that's why even if the sole purpose is going to be for business or investments. You shouldn't do it.
Don't rush into the scene just because you see people telling that it's okay to have a good debt because it is for business, investment or buying an asset. Remember that there's an interest that you need to make, so you need to establish yourself first before making a good debt.

I also know Kiyosaki's work well and in these types of threads I always repeat the same thing: using (good) debt to create wealth only works for a small percentage of intelligent, self-controlled people. For the vast majority of the population, if you want to improve your economic situation you have to avoid debt, especially consumer debt (taking a mortgage to buy your house is OK) and save and invest. That's all there is to it.

To clear the doubt, let me ask you something.
 
Have you take a loan from your friends or banks? how much you take it? is your business successful? if you answer "NO", then I don't see it's a good reason to create a business using borrowed money.

I can say something similar, buy shitcoins instead of Bitcoin, you have a chance to get rich overnight than invest in Bitcoin.

Most people don't know whether their business is successful or not because it depends on how seriously they take their business. Many of them borrow money because they "feel confident" that their business can be successful. But after they run it, they know it's not easy and many of them give up and ultimately, they can't pay back the loan money.
If they can run their business well, it will be successful, but it will depend on how hard they are willing to work.
There is nothing wrong with being in debt as long as someone can repay the debt. If he can't pay it back or is in doubt, he shouldn't borrow money from anyone.

That's true, I think borrowing money to create or start a business is bad, because most business doesn't make much profit early, and with the debt chasing it's very hard to expand it. The better way to start business would be using our own money or find some investors. I didn't say that there is no good debt, I think we should only borrow money when our business is settle, established and ready to do a big expand, when we reach that level of business borrowing money will be a good thing, our business already generate profit and we can calculate based on data on how much we can borrow money based on our monthly profit that, so that the monthly payment for our debt is not hinder the development of our business

Yes I think we shouldn't be taking debt for our personal leisure or product which depreciates with time which is the mistake people make but it's equally risky when you borrow it for business but it gives a possibility of giving profit which could cover the interest charges. I personally don't think these loans or credits are good because it pushes people at the brink of poverty with penalties and late payment fee, etc.

One should never fall in debt for products like car, expensive mobiles and all. Because only few are able to manage it wisely as I have seen people using two credit cards and keep rotating the amount between two.

It's never been good to start your actual business with borrowed money. You're in an experimental mode when you start and most of the startups end up failing and that's why it's not a good idea to start it with a loan. People who have been into the business will say the same thing and that's why someone who's pulling off a business needs to have their own money so, if it ever fails, you'll have no obligation to pay that will be suck you up together with the failed start up.

Thanks to the modern time today, many does take loan with the fancy things that they can have. It's all about the validation that they're taking from people. Expensive phones, cars, etc, but lack in assets and investments that will generate them more money. These possessions that people are wanting to have have a quick depreciation.

In my own opinion, one thing that I consider as good debt is purchasing property, as we know that land appreciates the price from time to time which is a good investment and business too, because you can let other people rent to your house, in that way you can acquire profit which help you to pay your debt or if you have no plans to put it for rent,  You can sell it at the higher price and you were be able to pay your debt while having large profit

If you do not have a quick return and assets that cover the costs of the debt, it is better not to borrow, otherwise you will put yourself in options that may be bad, and thus this is like shooting at your projects and dreams.
Regardless of things, the philosophy of getting money from money through lending leads to a decrease in the value of money. Therefore, banks and governments must encourage investors to make money from projects such as agriculture, industry, or services, more than borrowing.

You know, like I said, it depends on the person who will handle the money owed. In my experience, yes, I borrowed money, but not from a friend of mine here or from any bank. But I borrowed money here on the forum from @shasan worth $200, and even my interest is fine and payable in 2 months.

The 50 dollars I invested here in our area, which is a type of microbusiness that can be considered a small barbecue business, and the 150 dollars I bought potential crypto assets here in the field where we stayed most of the time. The first month I borrowed the loan was the 150$ I played in trading, and in the first month when I carried out trading activity in 5 variety crypto, I made a profit of 170$ in 1 month aside from 150$. In addition to the Barbecue business, I also made money from that, and until now it still exists. I paid off the money I borrowed from @Shasan, so thanks to him, my profit continues even in my crypto trading, which has produced other crypto assets.

This is a way to use money correctly and ideally, back to the reality where borrowing money is generally to cover life's needs.  I'm talking on a lower middle class scale and  that's definitely what's happening. There will be no option to expand the business and so on because debt for them is a way to take the opportunity to cover deficiencies  with the burden they will bear in the future.

Meanwhile for business people of course developing their business by taking on debt, there must be a separate guarantee that is commensurate right? do not necessarily borrow large amounts if there is no similar collateral. Therefore business people can take advantage  of loans in a profitable direction. The conditions above and the debt conditions in the second point  have different purposes. So we are still at the first point where debt is only to cover unmet needs.

Where do you place yourself from 2 position above?

If I were to start a business, I would prioritize saving money instead of taking on debt. Using debt can be risky and add to overall problems since it will accumulate interest in the long run. It's okay to take a loan for your business if you are confident that you can repay it quickly. Having financial stability and a safety net before starting a business is always a good idea. Taking out loans may seem easy at first, but it can become a risky gamble. It is always better to save money and use it to invest in your business rather than borrowing from others.

The advice you say is not wrong if it is used by everyone who wants to build any business in their own environment, because having initial capital to build a business from scratch is always much better than making a loan in any form to start a business. Because the level of risk that a business owner must bear will be very different between using his own capital and using borrowed money from other people, so the main choice remains his own capital, no matter how small. Because capital from other people must be repaid within the time specified by the borrower himself.

What you said is true OP. The book "Rich Dad Poor Dad" explains it very well too. Read it if you haven't yet. People often think that taking a loan is a bad idea but it is not always like that. Money, just like any asset, has a price. The price is the interest rate. The lower the rates are, the cheaper the money is. The first and most important rule of making a successful trade is "buy low sell high". So if you can buy money for cheap, then go for it. You can spend this money on silly stuff too if that's your thing but if you are an investor, a businessman, then you will spend that money on assets and that will grow your financial empire exponentially.

So which is better? To borrow and buy a cellphone, motorcycle or to use it to build a house. Obviously taking a loan should be properly be invested so that you can get that interest accrued to the loan from the investment even before majority. Therefore, to build a house with debt or borrowed money is far better and above the listed. If you build a house, you are sure to recoup your investment within a stipulated time frame as you can thereafter mortgage it or lease some apartment from time to time.

Bearing a debt can be seen as something bad if you use the money for recurrent expenditure and not capital projects. For example most wealthy men live on debt but they invest it so that it keeps generating additional income, they take loan from banks and invest it and also service the interest from the investment.

Loan is the reason that the rich keeps getting richer. The rich knows how to invest with loan and they service the interest from profit in their invested business.

I admit that it is true that a business that starts from zero and immediately creates current debt will make us trapped, because all businesses, even though they have been running for a long time, in reality income cannot be predicted accurately moreover, new businesses that start from scratch will usually have mental difficulties. Keep in mind that there will definitely be interest every month even if the business is not running smoothly.

I think that banks do not give loans to commercial organizations for business easily. Typically, bugs check the organization's credit history, its basic financial indicators and require guarantors or collateral. But banks issue main loans to increase working capital.
But borrowing money for an idea from a bank or a friend is very difficult. If my friend gives me a loan, it will only be on the condition that he will own a share in the business.

It's not everybody that knows how to make use of debt to make wealth and accumulate assets from it, instead, some will make it turns a havoc on them because they don't understand how to make reconciliation of debt and it's management for a profitable interest of what they intended it for, if we don't have another means to backup taking any debt, then we shouldn't start what we may not finish.

Debt is not always bad as long as we borrow responsibly, meaning productive debt, not consumptive debt. For many rich people, productive debt is one way that financial planners call it, because it can be done to increase assets. Provided that the debt taken is not used for consumer purposes, but is used to purchase a second property as another source of income, business investment to purchase capital goods and debt for working capital.

whatever it is, the point is to be smart at seeing opportunities. Get into debt first to be productive, the opportunity is very big. For example, debt for buying property but renting it out, debt for business investment and debt for working capital.

Yes that is actually true. But the root cause of such, is base on lack of planing. There is an addage that says " he who fails to plan, plans to fail" the moment you chose to borow money to build house or buy car without having a motive of borowing for business porpos has brought downfall upon him or herself.


Loan is not for liability or fixed asset rather for investment porpos and when you take loan with high interest for business it will definitely affect you. Because you will be struggling to pay off your outstanding loan and interest and also want make profit to take care of your siblings or family there by causing more harm Dan good to yourself.

It's even better to sell some properties and use the money for a genue business rather than taking loan. Because it is often said that loan for business is not good for a starter but rather good for an existing business because you have already know your way in and out of the business. Taking loan might just be an additional money to support rather using loan from the beginning because it might as well be a threat to you. Because definitely as a beginner you must encounter loss.

good debt is not defined as "make you rich"

good debt is where you have collateral or assets or cash to pay off a debt, but utilise debt to defer those payment thus not immediately leaving you with nothing to your name, nor defaults or debt recovery risk

for instance, a great example is
imagine you had $100k of bitcoin. but if you sold it you would have to pay upto 40% tax.
so instead you hand the bitcoin over to a loan company and they give you a loan of $100k tax free because debt is not taxable
the loan company then takes the bitcoin to cover the loan.. and job done you get $100k instead of $60k

Money is needed to achieve something financially. Finding the money does not mean that everything will be solved immediately. Some of us have capital but have no idea how to evaluate this capital. Some of us have an idea but do not have the capital necessary to realize this idea. Both of them have some shortcomings, and they can reach their goals after these shortcomings are completed.

So, if we do not have money to achieve our goal, how should we determine the moves we will make with borrowed money? I think that's the real problem. So, you may lose your own money, but losing money you borrowed may have a worse outcome. For this, we have to learn to use money correctly. Because we may not always have the chance to make mistakes. For this, we must research well, plan well and implement it. In order to establish a successful business or to invest money successfully, it is important how you manage this asset rather than whether the capital belongs to you or is a debt.

Yeah, and I think if we read his book we can come out with that conclusion. His formula is not for everyone and maybe I'm thinking that it has also include some shape or form of luck because that time houses are cheap in the US in the 70's-80's.

So for mere mortal like us, it's better to avoid, or if we have debts like credit cards, that should be our priority in order to have that financial freedom that we want to in our live. There's nothing with people who took DEBT to create assets, but you have to be very careful as I have said, there is this big factor we call RISK. So it's not as easy as it sounds.

i have experienced it when we think debt is a way out but in reality it is a trap that makes your money run low, i always think that debt to start a business is quite scary, especially since we don't know what will happen to our business.  maybe we won't get a buyer, let's be wise in managing our finances, don't let debt be a way out, it's better for you to have only $1000 in assets but no debt than to have $10k but your debts are piling up out there.

I agree with your opinion, not all business ideas come true when someone has a budget, there are some who don't have the confidence to start it or maybe don't have the courage. Someone who has a business idea with no money seems to be more willing to take risks than someone who has money but no idea - that's no longer a secret.

In my opinion, starting a business idea with borrowed money is fine as long as there is collateral. They cannot simply hope that their business will be able to generate profits and thus repay their loans – this is too risky, especially if there is no collateral.

Although I don't quite like the idea of borrowing, their are times when it becomes necessary and if you're able to make the best use of it, it becomes a very good debt. Like you rightly pointed out, the point that debt becomes a problem is when you use it for personal consumption like food, clothing or you use it to buy an asset that will not yield a single profit but will just remain dormant as a pure liability to you and that's purely a bad debt and it's  a no no for me.

The problem with debt or borrowing is that it put you in a position to source for more which is a big problem if not managed properly. My advise is that one shouldn't take a loan or become indebted to someone unless it is very necessary to do so, if you have your way, create a system that will allow you to borrow from your investment so you automatically become your own debtor and the one in debt and you don't get pressured whenever the need to repay it comes.

businesses are risky what if it doesn’t go the way you planned it? what if you lose more than you’ve put in? how will you pay your friends?

the concept of debt to me is quite not as attractive I probably wouldn’t borrow money to start a business, buy a house or a car or thing like that

if i’m going to borrow money i’d like to use it for emergency uses only

I do not even like the word debt, I know that there are people who are smart about it and use it to make money, then return it back on time and it’s a win-win thing, but maybe because I can’t take too much risk? I just see debts as burdens and will rather stay with what I have than get in debt. Think of the fact that you can spend your whole life just trying to repay money that you borrowed. No, I’ll rather just do the best I can and leave debt to those who know how to swing out of it.

Many success businessmen have much debt how to build their business, but don't forget they have good method with debt applying based on ratio 20% from all total assets the have. Some businessmen with assets having above $1 million dollar they only get debt around $200k and never have higher debt than their assets having. For businessmen actually debt use for building their business but difficult for us with small assets having not easy to get debt. Not good ideas with lower assets and try to get debt more higher because when business get collapse will difficult how to pay loan interest.

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I have ideas with borrowing fund in binance because have my assets on floating position, I think make its the collateral balance for borrowing on Binance and the capital I use for trading, can that be categorized as a good investment or not?

If you want to take out a loan at the very beginning of your activity and do not yet know what you can earn, this is a very dubious decision that can cause you a lot of problems. But if you take out a loan for a business that brings a stable profit and you can understand how much profit you will get and this will be enough to pay off the loan payments, then there is nothing wrong with this and can well be used for development. A loan can accelerate the growth of your business if you manage it skillfully.

This thought is really a trap and it draws you in over time. Starting a business is not suitable for everyone, and sometimes conditions should not be pushed to the limit. Doing business with borrowed money is always dangerous. Instead, you should work to build your own capital.

In order to pay your debts, the business you establish must bring you regular income. So what happens if you don't get the income you expect? Before you start a business, you don't know if it will make you a profit or not, and that's the biggest problem here.

It is not easy to manage the loan skillfully, but if this is achieved, the work done with the borrowed money will reach positive results.

Debts that exceeds your source of income is generally bad. Except for the sake of a defined investment with properly calculated risk management taking risk beyond once source of income can lead to not just debt but break down, emotional trauma, early death even lack of peace.

If one must take a loan that it above their income maybe for the sake of building a house or setting up an investment it is advised to go for long term loans and this loan's payback time should be calculated before taking them to ensure peace of mind and proper fund management

This is what the richest people do, effectively try to borrow as much money as possible at the cheapest rate and then find assets that can make a better return - then get to keep the float in the middle. It's what insurance companies do every year and contributed to making Warren Buffett one of the richest men in the world. Mortgages are probably the only worthwhile loan to take out and it's better to avoid any other type of debt if possible, besides credit card debt as long as you pay it off in full each month. Sometimes if you're starting a business you might need to get a loan, but you can quickly wind up losing a chunk of equity or even getting lazy if your own money is not at stake.

One thing my dad warned me against growing up is never to take loans. He was a man who was knee-deep in debt for a good portion of his working life so he knew how bad it was because most of his salary went to pay off loans every month.
Not like my crackhead took his advice but I learned on time and I learned the hard way.

I have always been of the school of thought that debt should only be taken for an investment. Where I'm from you see people take loans for consumption. Loans for weddings, funerals all other things. I'm 100%  against that. I believe when you take a loan, the payment of that loan should come from the proceeds of the loan. So when you take a loan to buy a car that won't be used as a source of income, where is the money to pay back the loan come from?

Taking a loan for an investment doesn't mean nothing can wrong. Of course, businesses and investments can fail, but it's better to be in debt to try to get a better life than to be in debt because of an insignificant thing.
Because of my personal history with debt, I try to stay away from it. Good or bad, borrowing money is not always my go-to option.

If you are taking up some loan just for the sake of buying up something which doesnt generate income then you're simply fucked up and just like on what you have said that if it goes beyond on the money that we are earning or simply with income. Then how you would really be able to repay those things on time? You are really just that basically making yourself that getting buried with debt.
Actually i did have experienced out such condition whereas tons of loans and debts had been piled up on which it did really comes into a point that im already that not able to repay those things on time
and those banks and lending firms do really tell me and having those legal actions against me because i havent been able to paid up.

Good thing that i was able to resolve out those problems even though it isnt really that simple because paying up loans which is really that more than on what you do earn
would really be tough as hell but since you are the ones who are making this then you wont really be having no choice. I do really be able to experience panic anxiety
because if banks would really be coming into a point on which you would really be that needing to face some legal actions then this is where things
will really that too damn hard to get out.

This is what I wrote about above, you can use credit money if you have a business that is already working and brings the expected income, otherwise it will be too big a risk. But even in this case, I would not take credit money, because I don’t like being in debt to someone. Without borrowed money, it may take longer, but you also eliminate the case when you can lose the loan money and be forced to pay back an even larger amount.

If you are planning on building a business via loan money then it would really be that imposing that kind of risks which it is of course normal but you would really be needing to take up that risks if you are really that serious on trying out on achieving something specially on becoming that successful because if you wont then you would really be just that remaining still on the condition or status you are now when it comes to financial state or condition but it is true that it would be ideal that you should really be only taking up some loan when you do have plans on business expansion on which i could say that it would be less risky comparing when you are really having that start up but well its up to your choice if you would be having that kind of approach on things and if you could be able to take up the risks.
Just like on what majority been saying on here is that when taking up a DEBT then be sure that you are really that making use of it into something that would generate income
because if you dont have that enough source of income then you would really be able to hardly be able to pay up that loan and this is something you should be avoiding in the first place.

I don't think taking a debt falls on the good side of it because if we analyze it deeply, debts have growing interest that will definitely put us buried if we can't pay it on time due to some other unpredicted financial problems that will suddenly arise. Debts will only serve as a distraction for us no matter how we say and try to convince ourselves that we also benefit from it in times where we are empty handed.

If you consider this mindset that it's okay to have some debts because it will also serve it's purpose at some point, but knowing you have to pay it back with additional interest, that thing is always bad on my own perspective.

It's true like that, there will be interest on the loan you make, not to mention other problems that will come. But if someone wants to start a business with insufficient funding, it is likely that they will borrow money, even though there will be interest later, this is not an obstacle to not running the business they want to run. Borrowing money to start a business is very risky, because just running a business will definitely have its own risks, especially if you add a loan, of course the risk will increase. On the other hand, they can borrow from friends or look for investors, where there is no interest, but maybe they should share the profits from the business. but the possibility of borrowing from friends is very difficult, isn't it? It's not like borrowing from a bank where there is a high probability that you will be successful in getting a loan. In my opinion, even if there is interest, if you are sure that the business you are running will produce results, there is no harm in doing it. Daring to take risky actions is not recommended and some people also don't dare to take risks,  but I myself am brave enough to take this action, as long as I am sure that the business I am running will produce clear profits and by managing everything well so that it runs smoothly. This is true with problems that cannot be predicted, especially with financial problems that are impossible to predict, but we can do our best to avoid or minimize the chance that problems will occur.

There are many points of view that judge loans are bad things also related to interest, but on the other hand to be able to run the business you want maybe this is one way, in my opinion even though there are many views that judge it bad it should not be a problem, it is better for us to focus on what will be done so that it can generate its own benefits, also if it has generated clear profits we will be able to pay off the debt and interest, because banks also want profit so it is natural that they hold certain interest in a number of loans that are done. The rest of the choice is up to us, where we must dare to take risks or not, because I myself cannot expect help from others to start a business so I dare to take this risk and I have done it, and the good thing is that I can run everything well as well as pay off the debts that I have from the loan that I initially made.

By having a loan that exceeds our income, of course it will create financial problems that we have and this will also make us unable to pay off the loan, even those who want to advance their business must think carefully before deciding to take the loan because if do not think carefully and continue to take loans and the business they are running cannot run well, of course the business they are running will experience problems if they cannot pay off the loan.

When taking a loan, it would be better for us to take it for the purposes of developing the assets we have because if we only take a loan for temporary pleasure, of course this will make it very difficult for us to pay the loan we have.

You're right - bad debt with depreciating assets is a trap. Many fall into this quicksand of instant satisfaction. Good debt goes beyond commercial faith. Calculated risk, smart move. Successful entrepreneurs focus on turning debt into asset production, not merely leveraging it. This goes beyond having a company plan or marketing strategy; it requires vision and agility to pivot when needed

In this war, communication, leadership, and negotiation are essential. It takes more than having a vision to communicate it to investors, lead a team to achieve it, and negotiate the best terms for your enterprise. Few can balance on a tightrope. Let's face it: debt leverage has risks. Responsible, accountable, and astute enough to turn debt into a sustainable, lucrative endeavor is more than just using other people's money. We must realize that debt can be a stepping stone but also a stumbling block if not handled carefully

Even so, building a business using capital through loan proceeds carries huge risks. So I personally still won't borrow money to build a business. But it's better to build a business with your own money. Even if the scale of the business is smaller, I will definitely have peace of mind. Because I don't have any burdens or debts to think about. So innovation will definitely run more smoothly. Because starting a business doesn't need to be big right away, but starting a business must be in accordance with our abilities.

How many new businesspeople think of debt as a path to greater opportunity? IInstead they think it is the ultimate solution to their financial collapse. Well, because of the old paradigm that debt is the beginning of disaster, they will avoid it as much as possible while they can build a business with existing capital, or not start a business at all rather than taking on debt.

Good debt can of course be a valuable tool if managed wisely. You can leverage borrowed funds for investments that have the potential to generate returns higher than the cost of borrowing. Both individuals & businesses can take advantage of good debt. You can use a mortgage to purchase a property which will lead to long term appreciation & rental income. Borrowing to finance education or skills development can enhance earning potential & career prospects. Good debt can be used to start or expand a business, invest in assets or fund strategic projects. Obviously it’s important to carefully assess the risks & ensure that the investment or asset generates enough returns to cover the debt obligations. Proper financial planning, budgeting & risk management is crucial to harness the benefits of good debt & avoid excessive debt burdens.

As long as there is a sense of responsibility, debt will be managed well. The burden of debt is indeed heavy, especially when borrowing is attached to the requirement that you have to pay interest of a certain percentage of the amount borrowed. But as long as the loan is managed well, such as building a business or using the loan to make money, the proceeds can be paid in installments to pay off the loan.

Most people who dare to take action or are ready to take risks will find it easier to recover economically than people who are afraid to try to do something using borrowed money. There are things that need to be considered as a sense of responsibility so that the loan is managed well. As long as it is within the norms of the position, debt cannot be considered a hanging rope that can ensnare the person in debt.

Everytime I hear this I will always remember Robert Kiyosaki with his Rich Dad Poor Dad channel on YouTube that is why I am a bit familiar to it. I think this will only work with rich people because banks I think don't lend money to poor as most poor people don't have access to banks. Rich or middle class  people has the ability to repay debts while poor people don't. In third world countries like mine it is too easy to get a small amount of loan but interests will surely kill you before you are able to invest on something that sometimes ends up a trial and error business or investment.

People things having debt is a bad thing but they don't know this is the reason why most of rich people are using their debts to create more and more money, its all about of proper handling of debts, rich people seeking debt to increase the number of the asset they have for example buy a land for additional investment could be an apartment, or mall to earn more money they focus in the investment that could bring them a good amount of profit while they are sleeping and not just spending those for their casual use, they will but after they paid all of their debts again make profit.
Debts will only bad for the people who keep spending with the things there's no value or profitable items.

Sure. Ideally, building our business is better to use our own money although it is a small business. We won't be burdened with debt, we can develop our business any time we have extra money. We also won't feel so stressed if the business can't grow as expectedly. Since it is our money, we won't have the responsibility to pay a certain amount of money to other people at a certain time. In this way, we can run our business in a more comfortable way and we don't hurry to expect gaining certain profits.

It is different when we used loan money for building our business, we need to set a target to get a certain amount of money from the business at a certain time. It is because we need to pay the loan money, we must gain profits from the business as planned. If everything happens out of the plan, we may get a trouble because the people/banks who give the loan money probably won't accept any reason to delay the refunds. So, we have a pressure to run the business in this way. However, sometimes with loan money, we can develop the business quickly because we have bigger funds.

Based on this example, it's good that the business grew in the first year already.
The bad side though is that this isn't happening to most of the start-up business, and in fact, most of them are already quitting, or stopping their business in the first year alone. I will not give some numbers, but the majority of the start-ups end up a failure in the first 3 years, and there are many reasons for that.

This type of real-life situation works only if you become successful in the first year of your business. The problem is what if it doesn't? I'm not a business owner, and I'm not a business-minded type of person, but I always don't want to use debt for a start-up business. I mean why not just save money right? Why not just plan on it in advance, and save money for it? If you want to start a business 3 years from now then start saving now. In that way, you will not be in a situation where you lost your money building that business, and failed, and at the same time, you will pay the money that you borrowed. It's hard if that happens to you.

Who are the ones who will be successful by doing this? Salesmen because they know how to sell their product. Look at those successful businessmen today like Robert Kiyosaki (mentioned by many here), and Mark Cuban as well. They can get debt from banks and then grow it because they're experts in that field already. As a beginner, it's hard to go straight up and borrow money from other people for a business. It would be better to just save money for it, and then use that money in your business. This is only my opinion though. :D

I guess debts are basically categorized according to whether it is put to good use or not. In which case, it is unfair to immediately conclude that borrowing money to buy gadgets is bad. Why buy those gadgets? Is it simply because you don't want to be left out among your friends in terms of the latest? Is it because it is convenient for you to watch shows anytime and anywhere you like? Or is it because you can actually find side jobs with those?

It's not necessarily about whether it increases or decreases in value. Cars, smart phones, laptops, and the like decrease in value over time, but it doesn't mean they aren't worth borrowing for.

Doing business with loans is very risky and must be planned carefully, unless you have savings or perhaps valuable assets such as a house or vehicle and then you take out a loan because you lack capital, in my opinion there is no problem. Because you have a guarantee to pay it if a problem occurs in your business, and the risk is that you lose what is very valuable that you have with full consideration and careful thought beforehand, and you have to be prepared for that.
And my advice, the most correct way is to start a business according to our abilities, and you can start it on a small scale which requires very minimal capital with your own capital. And this business will be big if you do well overall, and you can also look for sponsors if your business runs smoothly and grows, and that way you can share the profits with the sponsors you work with. And I think this is a good way, slowly but surely, the most important thing is that you master your business well.

Totally agree, depending on how and why you wanted that item that you've bought using that borrowed money or bank loan is going to decide if you've put it to a good use. I guess the reason why it's justifiable to conclude that it's a bad decision is because you could've used that money for other reasons like paying the down payment for a house. I disagree that it's a bad loan if you use it for car payments, the money that you'll save from commute and the hassles of commute is well worth the debt you're incurring not to mention that you can use it to apply for Uber or other taxi service app in your country.

Their are good purpose of taking a loan but some people take it for the wrong purpose just to enjoy themselves on things that won't be of any benefit to them. Loans can be taking to establish good business which can generate money in which the debt can be paid back.

 Some people took loan in their place of work to build house which is been deducted from their allowance, this is something that is not easy but it is better to go through hard times in collecting loan to solve important problems that will bring good benefits than to waste it on things that will count to nothing. Some privates companies do take loans from banks to improve the productivity of the company and the still make back good money as profits for themselves.

As I have stated many times in my previous comments, borrowing money isn't a very logical thing to do especially for trading in cryptocurrency markets because trading with borrowed money in such a volatile market causes the person to be more stressed and lose money more easily. As someone who has previously made a leveraged transaction by borrowing money, I would like to help you understand what kind of psychological effect this actually has by stating that I wake up every night and check the status of my positions.

On the other hand, I would like to remind you that leverage can be used to indirectly borrow money and make trades instead of trading with borrowed money. At least, if the leverage ratio is managed well, earning profits will be realized with less stress. Also, in this case the fact that the money that the person uses as main capital isn't a debt will be one of the factors that reduce stress.

Debt means so many things to people and it all boils down to it's usability. Debt becomes liability when is taken to be expended frivolously but assets when put in a revenue generating business. It could be a curse or blessing depending on how to use it. There was a new in Nigeria recently about a man from the Eastern part that raised a loan of 2.5m all to use it to bet and lost then commit suicide.

Loan or debt should be collected and used on things that can generate the money back and still give you margin

Debt or loan is the money you do t have on your own but collect to enhance what you need and that need must be what can repay it back even without interest

Really depends on how you would gonna use it on which we do know that there are people who do took up some loans just to buy up something which isnt important like buying up a car or
really just that spending on their family travels on which i could say that it is really just that too absurd on such situation. Unless if you do took up some loan but you are really that responsible on
repaying back on time. It is really just that a matter of choice whether you would really be that be spending it on your leisure times or you would really be focusing into making up some
business since you dont like on spending up your money just because you are really that mindful about your future.

There are really just those people who dont really care up about their future and would really be just that mindful in regard into their current situation on which there are
really that being too scare that they might not be able to repay up their loans. If you do saw that you could really be able to do so then it would really be just that right
that you should really be repaying back those amounts in time. It is really just that there are people who dont really care in speaking about future.

Taking out a loan that exceeds our income is certainly a ridiculous step, even for productive debt. Because the risk involved is very large with our financial future. It's okay to be in debt for productive debt but our income and finances remain stable.

Many people enter the world of business by going into debt, which is one of the steps that some people take. Instead of trying to borrow productive debt, mistakes often occur in managing debt used for business capital or investing. In fact, there is nothing wrong with going into debt for productive things, it's just that we are smart in managing debt to be productive. By getting income from the debt both in business and in investment. Again, basically everything must be based on correct knowledge and the targets you want to achieve before going into debt.

Both are bad in my opinion, unless you have enough experience in starting a business and it gave you a lot of profits.

You can't guarantee that the good debt you took will give you money in a certain period of time because you started your own business. It's a risk, either it's going to be a success or not, but most of the time, business is only good at the beginning, you will need a lot of money to make it run in a short or long period of time to gain trust of people which will be your customers that will give you profits.

A debt is a debt, as much as possible, it's much better to find another source of income, save money, until you have the capital you need to make an investment, or a business.

Before a loan committed there's lot of processes will be taken, first is the applicant will need to have a Credit investigation if they have the capability to pay their loans, or if they have an existing active loan and also their salary will be checked too to make sure that the payee is capable to pay those loans. Immediately they will make an action if they will reject the client or if they pass they can now proceed with the papers and agreement with the loan. Else if the payee cant pay they will need to use the small claims or make a collateral on what they have like having a Refinance Lease so the company who lend a money have still the assurance they will get paid.

Some people have misconception regarding on DEBT topic since they always think about that this is evil act and the person taking loan will be close to get broke since they will be haunted by interest of the amount they have loaned.

But they miss to realize that Debt is only bad when it is use for unnecessary things like buying gadgets or spending it to nonsense thing for sure with that you will provably got broke then get huge struggles to pay all your debts from institutions or people.

But also if they use those loan to make their businesses more bigger like what other successful businessman do for sure all of it will be worth it since by that we can increase our capital to use on our businesses that we want to build or expand. Its just how people gonna take all of this and if they don't have proper self control or financially educated on some things towards their spending's and investment for sure they encounter a huge problem on this loan discussions.

Debt can kill you and debt can also make you a rich entrepreneur. Good debt management needs to be done to prevent harm when the payment deadline is very close. Those who use debt well will buy assets that provide cash income into their personal pockets every month. Good debt usually builds a business, but it is necessary to review the money that the business to be built must be in accordance with the environment and the needs of local residents. Finding a strategic location must be prioritized so that the business runs smoothly.

In my opinion, someone who takes out a loan to open a business is not a wrong choice, but of course there are risks too. where it is true that debt can kill someone or destroy someone's life if they use it wrongly, because debt should be used for good things, such as meeting basic needs or to start a business, someone can take out a loan to start a business, when they have a good idea. It's good, but I don't have enough money to run it. I think taking out a loan is not a problem, because if you have confidence in the business you are running, it can develop well and make a profit, then that's not a problem, by running it optimally or well, you won't experience big losses. , the business you run must be successful in order to make a profit. On the other hand, taking on debt is risky, because there may be higher interest rates, but just be confident that the business you are running can develop well so you can quickly pay off the debt, too. In my opinion there are not many people like this, only some of them dare to do something like this because this is very risky so not everyone dares to take this action.

the other side. If we go into debt by using it improperly then it will probably kill us because the interest will also increase. like young people who haven't worked but they take out loans to force their lifestyle to look luxurious, the enjoyment they feel is only for a short time, whereas they need to pay off the debt they have already incurred, to pay and pay it off of course they have to earn money by working or whatever In essence, it will be an additional burden for them, leading to today's luxurious lifestyle, indeed many people force their lifestyle so that it can be seen by other people. such as from clothes, gadgets, or vehicles. In my neighborhood, there are many young people like this,  they force themselves to be stylish by asking their parents for more money or they themselves take out loans, there are also online loans currently being made by many young people in my neighborhood. of course this is not a good thing, because if they force themselves to be stylish but don't have enough money then they will be killed by their own feelings taking out loans is not the solution, because in my opinion the solution is to work to make money, not by borrowing money, especially in large amounts. not a little.

If it were so easy to buy assets with credit funds that could immediately generate income, then everyone could become a wealthy person, but in reality things are a little different, finding such an asset is not easy, often even if the profit is enough to pay the payments for a loan without a loss this is already good, so in theory it all looks simple, but in practice the asset can cause losses.

There are lots of them actually who borrow money early on the start of their business in order to grow it evenly. For those who didn't do that, or don't borrow money early, and they think their business are collapsing, they can as well borrow money in hopes of saving it.

The old paradigm is true because many experienced that but for some who are wise enough and has prepared a plan, a debt can be one of the contributors to their success. This is why they don't avoid it but they embrace it very well. For me, I will side for those who won't borrow money because it gives me a peace of mind. My progress can get slower but it's okay because patience is a virtue ;).

Well, we have seen a ton of people that lost money on loans and took on bad loans and did terrible damage to themselves and all. It means that we are going to end up with a lot of trouble and we need to make sure that we could do a lot better about it later on, and could be considering the situation carefully as well. I get that we could have some sort of situation that would make sense eventually, and it will not be all that easy, but as long as this stays, we are going to end up with something that will benefit us eventually.

This should be important because we are talking about a deal where we need to handle it all, and that should be the most important case here, it is not going to be all that easy to handle. I get that we may feel like it is going to be scary, but if we could just learn how to get debt that would work for us instead of us working towards the debt, then we could make it work one way or another eventually.

Have you heard the story of Robert Kiyosaki? If you have ever read his book - Rich Dad Poor Dad. He said how he used his first million and entered into real estate. Then his money was not enough he had to take a loan and add it up. In a year he got about three times of the money excluding the capital. Taking loan and starting a business is not a bad idea. This is because if the business is managed properly he would get the money to pay back the debt unless the person is someone who do not like to pay debt or did not discipline himself to keep the money needed to pay the debt.

As much as possible a person must avoid debt especially when it is really not needed.  With debt comes interest and the interest gives a lot of headache to the borrower especially when the interest is too high.

In business, it is best if the capital is not coming from borrowed money.  This way when our business is not performing well, we can shut it down without worrying how to pay the borrowed money in establishing that business.

Debt and crowdfunding is too different thing.  People who crowdfund are not oblige to return the money to the investors when the business goes bankrupt though when the business is successful, people who invest in crowdfunding needs to be paid for their shares.

Taking on a loan should always be the last option to be considered, and this is because even if you do everything right you still owe money to your creditors and you have to pay more than what you took as a loan, and the bigger the loan the more time it will take you to pay it back and anything can happen during that time, as I remember that before the pandemic started one local business I frequented took on a loan to renovate its installations and equipment, and less than one year later it went out of business as the pandemic hit it and the business lost all its clients.

Perceptions like this can be a fairness in my opinion because indeed many of us use loans not according to their function. even though not all but the average is the same because the behavior of most people and the results of making loans actually make their conditions worse.
It all depends on the behavior of the person who borrows in the end if it is a business brain that is done then borrowing may not be a problem for those who borrow but in other conditions when borrowing is always misused then this will increasingly make the perception that debt is something bad will definitely continue to exist.
So in this case it is important for us to always do what we can and if we can't maximize the situation when we borrow then don't do it if you don't want the situation to get worse.

Really indeed the last option and this is something your last resort when it comes on taking up some loan which we know that interest per month or a certain period of time is really just that a burden.
If you arent that good on paying up some loans in your past tries then it would be better that you should not really be making the same mistake again.You would really be just that putting yourself on such trouble
and when things becomes severe then it would really be that so damn hard to get out and this is why it would really be always that best that you should really know on what you are doing. Be sensible
and be responsible on the actions that you are making so that you wont really be ending up on experiencing disasters due to bad decisions that had been made.

You should really be mindful that whenever you do take some loan then you should really be applying it on a business or investment so that you would really be able to have those chance on
making yourself be able to repay those debts on the time that you are already making profits into the investment that you had made but if you are someone who could be able to repay those loans
or debts without doing business or investment then its good for you but we know that not all would really be that on the same situation in regards about financial
status or capacity this is why we should really be that wise.

Money is a medium, borrowing is the last option after spending savings for planning and action. Your analogy about business comes to my mind, even capital banks are functioned for business reserves or franchises that have been running for at least 6 months. even cold money that becomes a reserve if used for daily and irregular consumption will certainly run out sooner or later, let alone borrowed money that must be returned even to friends, let alone to financial institutions that have the same tenor and time every month.

Loans can be a good alternative when the business is already running but its role is for temporary replacement funds, for me if you are just starting a company this is the same as gambling with circumstances, it is better to have fun naturally than to put money into a business that does not know its market segmentation and force yourself especially with borrowed money.

Because you don't know how long it will take to maintain liquidity in a new business, when turnover is unstable, of course, installments must still be returned and paid off.

I doubt there's much good debt these days. All debts by me are always of interest that may be twice the debt taken out for the problem. Unless it is to push a business, I wouldn't advice anyone to start off any worthy idea with loans or being in debt at growing stages because when the time comes to repay the loans, it becomes a big issue on how to gather the funds to payback.

Still, there has been those who took out debts and made a risk investment that paid off big time and real estate is one of those kinds of investment as well as taking out a loan or being in debt while working at a job just to maintain a steady DCA strategy of investment that will pay off big time after some years. While the job covers some part of the loan or debt to be repaid, as well as bills that need monthly attention, the loan will ensure that one doesn't fail to keep up with the DCA holdings even if it is but a quarter fraction of the normal amount to be DCAd from ones salary or earnings.

It's true, there are definitely two types of debt, the good and the bad. I would make the classification a bit different, bad debt is the one that we use for consumption. It doesn't provide any additional value for us except a quick boost in consumption, but it won't make our long-term outlook better. The good debt on the other hand is going to create income and returns in the future that will make our situation better. In most cases I think that debt is unnecessary and should better be avoided, but there are also situations where using debt is unavoidable. For example, when buying a house or apartment the majority of people will be unable to make the purchase from their savings alone. For such a large purchase which we only make a few times in our lives we need to use debt. The debt in such a case should always be consider in relation to the benefit we get from it. With our own apartment we would save on paying rent which we then can afford to pay back our loan. So, we should be only using debt if we get something from it and if there is a benefit in the future. The only exception would be if we need money for a medical treatment, health is everything and comes before money.     

What I noticed is that the majority of people who are in bad debt are the poor and the mid-level or the working class. Many of them will just borrow money when there's a chance without having a plan to start a business. I remember when I was a kid, my family took loans to buy televisions, refrigerators, washing machines, etc. The worst I observed is when someone borrows money with interest to celebrate birthdays, anniversaries, etc.

I hadn't tried taking a loan in my whole life and then I realized that it's not really that bad when used to start a business or a venture that has a huge potential of earning profit. The majority of the rich are smart when it comes to their financial activities so they are mostly in good debts. These billionaires do not even have lots of cash. They are very good at managing and protecting their assets from inflation.

We need to under what debt stands for before we start discussing it's usability. Debt is a loan you take to help you attend to a need and when is not properly used then it becomes a problem.
For you enter into debt then you must have a means to repay back as agreed and I won't advice anyone to enter into debt all in the name of stating new business as most times it does work as new businesses often have start up challenges the debtor might not have factored into their calculations but if you want to get it to boost existing business that is paying already then is fine
What defines good or bad debt is in usability & ability to repay back and this boils down to individuals. Debt you don't have means of repaying back should not be taken.

When we borrowoney, it is good for us to use it for what we want and not allow greed or money pressure to make us to use the money for something contrary for what we want. It is good for us to use borrowed funds according to the way we plan it. People that used borrowed fund wrongly are mostly people that are easily lure by the influence of money. We need to make sure that we become disciplined and use money according to what it is expected to be used for.

Loan is not an option for me, but if I must access a loan facility I will have to be prepared to establish a profitable business that will enable me to adapt to the repayment process, there should adequate plan before loaning because this might cause you things you will live to regret, loan is not taken for fun, this way when you are accessing loan the bank or microfinance bank will stipulate the terms and condition that will help you to access the loan, when you are reading this terms you will know if it the right thing you are doing or not, I know that there are some conditions that might lead individuals to this but one should think very well before making such decision because it might turn to be disastrous if care is not taken.

Learning the skills you mentioned is possible for anyone, but some people seem to have a natural talent for them, as if they were born with those abilities. In my country, there are rich people who didn't go to school much but are good at business, suggesting they have an inborn knack for it. I don't really believe in luck when it comes to business. I think those who succeed are genuinely good at what they do and know how to make smart decisions, rather than just relying on luck.

Agree. Debt can indeed destroy us, but it does not rule out the possibility that with debt we can be successful, it all depends on each of us. And debt should not be something we have to avoid, as long as we are willing to learn and are smart about managing finances, then debt can be a lever for us to be smarter in terms of financing.

Debt is good if we can be active and smart in multiplying our money to get more money from our debt, and on average rich people definitely have debt because most of them are good at multiplying money. However, if you can't manage it well, it would be wise to have cash or not be in debt.

There are many misconceptions about debt, but that's because our thinking and mindset isn't quite right.
Indeed, in this case I quite agree when saying debt can eventually turn into profits as Saylor did with the principle of bitcoin maximalism which is done by borrowing money from the bank and converting it to bitcoin but on the other hand things like that are not a guarantee for us who do not have a large guarantee.
In the end, we must know that the majority of people in low economic strata only use debt to support themselves so that they can continue to live, which of course makes it difficult for them, therefore sometimes for those in poverty strata it is not advisable to borrow because it will greatly endanger themselves.

Debt could definitely destroy us if it wont really be that handled well. You wont really be just spending it into something which is really that useless because if you do then you would really be ended up on
disaster. This is why it would be always hat best that you should really be that mindful on the decisions that you are making so that you would really be having that less risks on making some damage into your finances.Always mind off about on how you would really be able to add up those income and this is via investment or having business. Taking a loan for some liabilities is really just that a waste of money
but if you are really that prepared on repaying that loan and not really hurting your finances then it would really be just that fine.

Your money then your rules but be sensible on where it should be applied and it should really be on something worth so that you would really be that
able to avoid into those certain situations which we dont really like to happen into us.

Many people think the debt in the wrong way,their thoughts was if they get credits it will pull them backward.But the hidden thing of the debt was the person will get the debt based on their income.So if the person had huge debt means,his rotation of the money also high.In another way the people who have more debt will increase their income sources in the multiple way.So at the final,he will move to the next level by the debts.Only if the person keep on getting debt without more income sources will become more poor.


The money handling people will have more credit cards,because they will rotate the money and inverse in the trading.The risk in the debt also help us to understand the real value of the money in the real world.Also help us to save more money in the future.

Using debt for investment needs is certainly not recommended because you have to pay the debt every month so your income must increase from the previous monthly income, unless you use debt to build a business or increase your business capacity to expand your network more widely. I really avoid borrowing large amounts except for urgent needs for medical expenses and other emergency costs, but for business needs we will prioritize using funds that suit our finances, we don't need to force ourselves to build a big business in an instant but we have to increase our experience in building small business, so we don't need to use loans to build a small business and a business that is not tied to loans will have more potential for success in the future.

Because low income people should not have debt because they usually treat dept as a way to increase more spending without thinking how to create more income.

i saw high networth people also use debt as a way to decrease tax, it's very profitable reminding how much interest they have to pay in order to decrease income tax

Rich dad poor dad mechanics basically. Poor people create liabilities when they take debts, while rich people create assets and opportunities when they take debts. One good example of this is how most companies especially in the housing and real estate sector take up debts and loans from large banking institutions to fund their projects instead of using their pocket money. Why? Cause when the project's already fully erected and they can launch it successfully, the project will essentially pay for itself by paying off its interests with the profits.

But the thing is that you can't expect people, regular ones at that matter couldn't do the same thing that the rich ones could. Imagine, no one's not gonna be able to take such ludicrous loans (of course they have the business loans to take but there's caveats to that since they aren't as affluent as those in the upper echelons) which make it seem as though debts aren't meant for anything other than to support their lack of funding.

thats true, one most important thing that many people forget, poor people only can borrow small amount of money, nobody in the financial sector are trusting poor people with big money therefore the difficulty of escaping poverty is kinda obvious, yes some people say to get a loan for a housing then we can rent it, but getting approved in the first place without high income salary is kind of day dreaming.
its always the thing that people with capital are definitely having the advantage, therefore if its people with small capital, continue working, save up those money, grow the capital before thinking about using debt to create an asset.
this way of creating an asset through debt is only for people that already assets before hand, and sometime its also not always a foolproof thing, sometime it doesn't work, imagine the interest rate is spiking so high, there's no other way but to use our personal money to pay up the loan.

You provide a thoughtful view. It's true that if there are no quick returns or assets that can cover the cost of debt I think it will have a huge impact on the health of the money.
In theory, money often decreases in value every year. And if I lend money this year, say 100 dollars, 1 year later the borrower returns the 100 dollars (without interest) there will definitely be a decrease in the value of the money, I think this is because the selling price 1 year ago will increase several percent in the following year. Etc. And it is true that empowering investors to make money through productive projects such as agriculture, industry or services can be sustainable in supporting economic growth.

That's right, borrowing large amounts of money is only done when the situation is urgent, if you want to start a business it's best not to immediately aim for big things, it's better to do small things first, because starting is what everyone has to do, if they really want to be successful of course they have to start from the bottom first, in my opinion they can borrow money to expand their business network, if you start with small capital, in my opinion this can be done without having to take out a loan, especially with a large amount, that is not recommended.  Don't force yourself to open a large-scale business straight away because it doesn't guarantee that it will produce clear profits.

I agree with you, to start a small business you don't  need a loan to start it, it doesn't matter if the business starts small as long as it can be run smoothly, maybe it will definitely grow, also as you said, a business that doesn't involve debt will have more potential. for success.

Collecting loans for business is more advisable than collecting loans for liabilities like car, phones etc.
Business is not certain, it can be profitable and at the same time it can lead to loss, but before you think about getting a loan for business you must have made some research and inquiries about the business and be very sure of it, so you will know every detail about it, and once you know every detail about a business, it will be very hard for that business to collapse, the reason why most businesses collapse is because of bad management of the business or inconsistencies around the business.

Corporations often do this to ensure that their other assets will continue revolving. The idea is letting your business pay your debt/loan for you without actually releasing capital from your wallet. The only risk is assuring that the outlet you created would be profitable enough to generate money and pay it off. I agree with what's cited; there is a good side of taking a loan and also a bad side. It just depends on the purpose and idea behind the amount you will borrow. If it will be used to things which won't generate money and will just depreciate over years, then that's basically unnecessary.

Some are doing franchise to lessen the risk of losing money. Franchise businesses will at least give you better chances for a stable gross especially if you are under a good trade name. It is less complicated than with starting your own business from a scratch especially with introducing it to the public unlike with franchising wherein there is already a public exposure to the brand you will be engaging yourself with.

to start a business must have capital, because everything can run with money, a person who has a good idea but does not have enough money to run a business or business in my opinion it does not matter if they borrow money to be used as initial business capital, as long as they are sure that the business or business they run can generate profits in the future, because there are debts that must be paid and of course must also be repaid  In my opinion, this is not a problem,  if they can consider it well, because if they already have a good business idea and business,  it's a shame if they don't run it, so there's nothing wrong with trying, but don't be rash, trying I mean not by basing it,  of course it must be with accuracy because what is wanted is success not bankruptcy.

For example, someone who has a business and wants to open a branch in another place but doesn't have enough money in my opinion there is nothing wrong with them taking out a loan if they are sure that to expand their business network it will be more developed and profitable, of course they need more capital, and taking out a loan for capital to open their business is one way to overcome it. to make it bigger, according to That's not a problem for me, again in my opinion, whatever other people think, maybe their thoughts will be different because obviously everyone has different thoughts in doing something.

Robert K always talked about this, being able to utilize debt and the depreciation for tax benefits, I love how much of an advocate he is to BTC, also a huge gold and silver and of course real estate tycoon. I definitely need to brush up on utilizing these tax incentives better

And with what we believe seems to be right because that's how we deal with things and think of it. But that belief is wrong because it never had happened to us but the time that we do the same as the other people who committed mistakes in using debt, we'll be able to prove that and our perspective will change.

It is not guaranteed if you don't have any other source of income at all. How can you take a loan and will use it for something like buying bitcoin but then the interest keeps on running and you have to pay for it. You can't just simple file for bankruptcy with that and that's why the lenders who have been doing this have their back ups and actual money prepared to pay for the amount that they've taken as a loan. They wouldn't borrow money just because they don't have money but they can pay it so that they will not use their own money for such investments and businesses.

This is true, people who don't have that much borrow to sustain something they need or an important matter to get addressed. But using it for business, you are not going to see a lot of it.

its literally his branding to create asset from debt,all his books always talks about this thing and I couldn guess he made quite the fortune from the book as well therefore no question about it.
but its just might not suited for everyone, the fact that we are creating asset using debt, might put a lot pressure towards our mental health when thing goes wrong like pandemic occurring for example.
not to mention the fact that there are not many ways to get that much of a meaningful money from loan if we don't have assets in the first place, definitely not suited for people starting out.

thats true, the thing is, most poor people just getting debt to support the lack of money to fulfil basic needs let alone creating asset, if they can't eat today, then they are done for, its quite different for middle class to upper class yes, because the people in the lower class don't really have something to fall on when they are failing, once they are entagled in debt, well its the end for them homeless is their next stage of poverty.

I think in this case we also have to think about what our purpose of borrowing is for and what guarantees  we will get or produce from the loans made because in the end it all come back to the mindset that we have discussed considering that borrowing also requires careful calculation and plan  that we must build so as not to make the same mistakes as others do. 

Hence the need for us to think further when getting into debt.
When we are in a strata that can be said to be below then do not try something with a big bet. Referring to the example I gave for Saylor, he knew that when he borrowed, he would be able to pay it because his assets were abundant and he was not too worried about not being able to pay the debt because he was still able to do so, but for those of us who are in the lower economy and do not have a mature plan for borrowing, it will be very difficult to realize because in the end debt is not as simple as imagined.

I don't really understand what you mean by this can you clarify?
Because what I meant to say is that for those who have a difficult economic condition, the loan is not for doing business but to support their daily life.
There is nothing wrong with the concept because they want to survive for the sake of living but it is not in accordance with the concept of good debt because precisely by doing this method in my opinion this is the last way that must be chosen if indeed we do not really have another way and if there are still other options then it is better to avoid debt because after all even if their economy is bad at least their burden is not too heavy because they do not have debt.

This is true. If you borrow money and use it to build a business, the outcome is still uncertain and one wrong move can trigger to failure.

Therefore, it's crucial that you know how to handle everything (in general) to maximize the possibility of having a successful business. The reason why it's not also easy to use a borrowed money to gain assets because there's always risk. But of course, this idea is much better rather than borrowing then spend it for wants.

It's hard to distribute these loans that we make and that's why before taking one, you have to rethink where you're going to allocate it because if you don't do so then you're making a huge mistake that you might regret forever and that loan will put you into a deeper hole that you cannot recover anymore. That's wise in terms of taking loans, you need to be wiser around if you're decided to take one.

That's right. These huge borrows that people make are sustainable and they're able to make money from their other sources. With or without collateral, they will be able to pay the debt no problem if ever the expansion of any venture they do with that money fails to comply. With such back up plans, people like Saylor are smart in money management and they won't just let themselves deal and get into bigger trouble through having large debt.

Yes, they need to classify it as a good debt and with that. It should be making them more money instead of getting more in debt and with interest rates. People need to use debt for their betterment and not just to buy things that they want and they'll pay it later. That's not the way to use debts when you want to grow your way of living and just do what the rich do, they have no secrets anymore.

Yes, opportunities offered by lending institutions won't be the same for everyone, because not everyone can give the same collaterals and guarantees... It's a responsible measure from banks, otherwise they would be easily scammed by anyone. On the other hand, it doesn't mean average citizens can't venture themselves in business field. They just have to start slower and lower than the whales. The concept presented by OP and economists following this same theoretical line makes total sense, although there are many variables in practice which can prevent someone from being successful on their businesses. Even though it's a 'good debt', it's still risky and must be thought carefully before being executed.

The ideal is always to have money on the pocket to invest at once, without creating any debts on long run. Interest charged for loans is just too expensive in most places. Here in my country financing can easily reach to 50% interest. Thinking about business, it means you would have to work on the double just to pay the initial investment plus the interest charged by the financial institution. Maybe it's more interesting to save the money instead of borrowing it from a bank...

Does it seem foolish to think that starting small is easy? The battlefield is horrible! The banking system's collateral demands divide the haves and have-nots Responsible financing is necessary, but where is the line between caution and exclusion? Banks, after all, should be enablers, not gatekeepers. Isn't good debt a 2 sides coin? We can't romanticize debt without realizing it can trap us financially. You mention 50% interest rates; that's daylight robbery! A vicious economic loop where you work twice as hard for what? Nearly drowning?

On to saving versus borrowing. A cash reserve is desirable, but how many people can afford it? World income inequality is as broad as the Grand Canyon. Many believe saving it as likely as a snowball in hell. The system hurts normal Joes who want to be entrepreneurs but face tough economic realities. So, the answer? Perhaps the loan system needs a complete rethink. Community-backed microloans or crowdfunding for local enterprises. We must remove these financial barriers and level the playing field. Isn't it time for banks to help, not hurt?

In the reality of life we face two kinds with debt between consumptive debt or productive debt, I will give little describe difference between two type of debt because many people get their self take much debt benefit for consumptive debt only but not use debt how to make ut more productive and increasing with their earning. Good debt or productive debt using for building business and earn profitable later and its area for businessmen keep get loan or borrowing money for building up their business.
Some people have bad life style and push their them get borrowing for consumptive debt use their lifestyle only and will face difficult later how to pay loan interested. Be smart when getting loan as bad or good debt if you want use loan for build up your business its not problem with productive debt.

Collecting loans huh? I think that sounds a lot of loans hehe. And it seems gonna be a little difficult for us to pay them all. I read it somewhere that a car, phone, and the likes, can also be called as an asset or investment. I can agree with that if we only have one. If the previous that we have got destroyed and completely unusable, we will need to have another again. Those things can aid us from transporting, making a transaction, etc.

Yes. To have a plan is important before starting something. But we should keep in mind that there is still a high chance for us to fail despite of it. Apart from the reasons that you said, to not have a luck is also responsible for it.

Don't take anything for Granted.
If something been working well before it doesn't mean you can be sure for the same it will work further.
The mindset of taking the DEBT...to buy to rent it's a bet If all goes well but what If not ??

Looks good and I agree on the bad debt and good debt. In short if I am purchasing a commercial space by taking the loans then that is one sort of debt for me. However, it depends on its usage whether it is gonna be my good debt or bad debt. For example, if I go further and rent it to some bank or company then it is going to pay me rent. This could either pay up half of my loan, or may be full EMIs. Now this is not my liability anymore as it is getting paid off by the third party. I would end up saving my wagers plus I will be building a property for myself. In addition to all, as real investment this will keep growing with the time as appreciation cost. So yeah, I believe the theory that is stated in the OP is something we can live and concur. :)

That means what Op said about good and bad debt is correct. Generally speaking, debt is not bad. It only gets worse the more the borrower uses it. Which is that if it is used correctly, the result will be good in the end, that's for sure.

So what you said is also correct, and I don't contradict it either, and that's really the point of what we're talking about in this section that Op actually did.

It is indeed not an easy thing to be able to trade using borrowed funds because we don't know for sure whether we can make a profit in trading and if we experience losses in trading of course we have to find a way to pay off the debt when we can't pay it off of course we have was in trouble and had to take out another loan to be able to pay it off.

Of course, it is very important to be able to trade with a good mental condition and also have sufficient funds to trade, because if our mental condition is not good, of course we can make the right decisions in trading.

What you have stated is a sample of a good debt. Investors of real estate are using this method to use their property to make money. Having a loan in the bank to use for real estate and looking for someone to rent the property. The money they can get from the rent will be the one to use to pay the loan.

Unlike those people who take a loan to buy new cars, motorcycles, or any stuff that they don't even need in life. They take a loan to buy something they can show off which we can consider as a liability.

It's all about how you use your debt. People need to understand that debt can be beneficial if used properly.

I concur that borrowing money is not always a bad thing as long as you know what to do with it and you make enough profit to feel like you can launch a business without going out and getting another loan is also okay. However, sometimes we need to realise that the loan was made possible by the interest that will be added to it; I don't mind the interest on the loan; what bothers me is how I will be able to succeed as an individual if I acquire a loan. These days, a lot of people don't take out loans to launch businesses; instead, they use them to buy cars, build houses, and generally enjoy life. As a result, a lot of people who take out loans don't get along.

Every decision you make in life requires careful consideration. Many successful businessmen that we see today began with a loan and have since amassed millions of dollars in their ventures are not wealthy because they used charm or magic to finance their businesses; rather, they worked hard to establish their brands and raise capital so they would never have to borrow money again. However, you will also notice that many young boys and girls borrowed money today, which they ultimately used to party.

Banks actually don't care, as long as they are profiting side by side with whales and monopolies from our societies. The government neither, since they also profit from the current consolidated system dynamic. Governments, banks, whales and monopolies are partners on this business. The upper untouchable caste living on the abusive interest paid by the average joes. And I don't think there is a large scale solution for this issue, because even if someone with the best intentions reach a power position to make some changes, he will be corrupted by the system or taken out of circulation. The longer I live, most certain I become that collective causes are doomed to failure.

It's a great idea! Let everyone become lenders, while charging cheaper interest rates from borrowers. Everyone gains, although it directly impacts negatively the finances of that upper untouchable caste, and as we know, their interests come first... I would love to see this idea in practice, but unfortunatelly, It's not going to happen. I think it's funny when a random person wants to lend money he is considered a loan shark, which is a crime in many places, but the financial institution can legitimately charge 50%.

But it will be quite worth it with all the possibilities we will get.
I think we need to take a little risk in taking big profits because it will be proportional so we will never find profits without risk. Likewise, in everything we do, the greater our capital, the greater the profit percentage.

Therefore, we have to be smart in seeing opportunities and be able to use the money as much as possible, especially the money from debt that we will use, of course we will do a lot of calculations to avoid losses.

You're right there, and in everything we do that involves money, there's always a real risk, and that doesn't go away. Now, just like you said, there is actually a calculation that will happen if what we want is to build a business that will produce profit for us.

Now, if it comes from debt, I don't see any problem here if we only know the correct process of circulating the money owed in the proper management of the business that we will also do.

Imagine the pressure you can get for using that since you already lose with the interest ask by bank with that so maybe don't ever think about taking a loan from that institution just to fund your trading activity since we know how risky it is and might we will just lose the amount we ask from them. I guess that's a bad idea and not a proper way to use our debt since we might get in trouble to pay it especially if we have many loans from different outlets. We should think in smart way and then think about more valuable way if we plan to take loan then we make sure that it can really generate a passive income like expanding our businesses since this is how a loan became a good one if we just use it on right way.

Aside from trading in good mental condition since we really need to be in good shape with that, we also need to use our extra money so there's no huge mess happen to us and also we will not get broke if luck is not with us by the time we trade some coins in the market.

When you take debt, you should pay the debt from the loan taken and the only way you can do that is to make money out of that debt. A debt should only be taken to invest. This sounds easy to say but it's very hard. Especially for those who have an opportunity to take loans easily. It requires a lot of discipline to not borrow money when you need money for consumption.
I feel the only time we should borrow money for consumption is for health emergencies and life and death issues.
But as someone who works and make money, you should have planned for emergencies like that

When you get comfortable with taking debt for consumption, it becomes very easy to fall really deep into debt  and that can make you not to make any money because all your money would go to paying off debt

someone who has a good mindset, when he has a business idea or business as well as an investment, and he doesn't have enough funds to do the thing he wants to do, then he takes out a loan in my opinion of course they have thought about everything when they take the loan action money, I think they are very confident that the business they are going to run can generate profits, therefore they dare to take out a loan to carry out something they want.

Sometimes there are people who don't have permanent jobs and they have financial problems because they are forced to take out loans to buy their needs, and this is normal, but I don't know what happens to those who don't have jobs but have debts. that has to be paid off, maybe they can just wait for a miracle to happen, but I think they have to look for a clear job so they can get a steady income, because it's not just for themselves, the debt they have to pay off is also their responsibility.

Plus if you take a debt, make sure that you can still pay it in case your plan to make money from that debt fails, causing the penalty, charges, and fees could drain up your wallet. Borrowing money just to buy unnecessary things would be a bad move, some think that they are taking advantage of the system like payment for 3 months, the thing is you would still need to budget your money as you would less the debt to your salary.

Borrowing money for an investment is a good idea but for sure you need to make the money grow to return the good. You need to plan it as there is such long-term investment to reach ROI and get profits like we can say Bitcoin, if you invest in the current market for sure you would have to wait for another bull run to occur, or else you would be in deep debt. For health and emergency, it's understandable, but you need to make sure you have emergency funds to sustain your needs. The important thing is the person who's gonna take a loan has a stable income.

I think taking out a loan to trade is not a good thing, because even though trading can generate profits, it's not guaranteed, right? because in my opinion even someone who is a professional in trading will definitely experience wrong predictions, it is impossible for them to always be accurate in predicting, because in my opinion even though trading requires extensive knowledge, I also think luck plays a role, so even if they have sufficient knowledge I don't think they are knowledgeable in trading, which doesn't guarantee they will always make a profit.

I think that taking out a loan to start a business or business is less risky, because if we have good skills in managing it, it is likely that it will be profitable, and don't try to be successful, just start a business to make a profit first, because success will come by itself later if someone wants to try and work hard, this is also the difference with trading, even though we try as hard as we can, I don't think it guarantees that we will get easy profits. but I don't know exactly how, I just assume what I think.

only if you have an asset before hand, or salary that is sufficient, the bank aren't gonna go around giving some money to stranger, you need to build up trust first maybe credit score for loan then you can get that loan to start out with such strategy, even so in renting your property it also requires proper planning also need to remember that the property need mantaining so its some more money to shell out also with taxes.
this indeed could work but really there must be more to it than just renting some spaces, and you will magically get some property in your hand as the time goes.
but i would argue that if someone has enough asset to cover for the failure of the strategy, they should try it, there's nothing wrong in attempting to get some good property with just loan, even more so when we have so much money that we don't know how to take advantage of but in the other hand we also need to mantain cashflow.

Problem with this one is that not everyone can easily access loans or even afford to utilize debts even if they can make it because everyone isn't rich and have what it takes to be risk takers and they can't afford to even do that too because it's going to be significant money for them and they might have a hard time using it in a business or something that might improve their financial standing. Plus, I do think that we're likely to see debts get it's full utilization if they're a certain amount, a measly 100k loan won't really net you lots of returns and that's why big businesses are the only ones that's successful at doing this debt utilization because they're getting bigger returns since they can borrow more money than most individuals.

For real, people borrow money to start trading? What type of risk is that? No matter how professional and skillful you think you are in trading, I don't think it's a wise decision to borrow money and start your trading career. Although, it's a two edge sword and if you are lucky to succeed, you'll repay the debt and have your own money to start the journey but if otherwise, you suffer from desperation the embarrassment that associate with debt. However, the chances of failure outweigh that of success and that's why it is not an ideal.


Are you a risk taker? If one can answer this question honestly, then taking debt for investment wouldn't be a bad idea but believe me, I can't subscribe to such ideas because it doesn't align with my policy. We all know there's no such thing as a sure thing and guaranteed as far as investment is concerned.

Having all plan put in place doesn't mean automatic success after acquiring the debt. The only thing sure here is that, with the debt, you have the capital you need to kick off the business but in all circumstances, you should as well prepared for the possibility that the business might not succeed.

Actually, there's always risk involved in making profits and it doesn't even matter whether it's big or not but normally the higher your risk, the possibility of higher return and otherwise. However, it's all about knowing and balancing your goals.

The argument is true, business expect good returns, especially when the business is already established. They can multiply their investment, so even if it comes from a loan it won't be hard for them to repay it as it will be used for business that can generate income which they will be using to repay the loan together with the interest. After those loan terms, the money that they earned from it will be used as capital, and it will just be added to their growing business.

Sad but true, that even small loaners can get money without proper knowledge and without that opportunity to establish a business, the outcome will be a burden to those who borrowed that loan and the interest that they borrowed needed to be repaid, and it will be taken from their monthly salary if they fail to use it for business that will generate profits.

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

True, such an approach is really not recommended in the world of trading, one of the reasons that makes sense is because in trading you not only need skills and knowledge but also this activity involves mental and psychological calm and if you trade using money from borrowing then obviously at least there will definitely be a feeling of fear in yourself when using that money to trade which ultimately makes it difficult for you to be able to focus and have difficulty in terms of analysis because of the pressure and feelings like "I have to profit to pay off debt" of course it is something that you will definitely think about when your trading session has started, And usually when you experience distractions that make it difficult for your brain and mind to focus on making a decision in trading then obviously usually the decisions you make will also miss, meaning you make the wrong decision because of the psychological pressure of the borrowed money.

So in the world of trading do not try to borrow money as your trading capital because peace of mind is needed there, no matter how skillful you are, I have felt that the psychological distraction of borrowed money really makes me feel difficult to analyze and ultimately act carelessly.

that makes sense, this proves that people's perspectives are different, where people go into debt to do things that will generate profits in the long term, and can generate profits for them to obtain as well as to pay off debts that they take out loans to generate In my opinion, profits don't matter, because to produce something profitable of course there must be sacrifices, and people like this tend to have a good mindset, that's what I think.

Meanwhile, for people who take out loans to do things like you said, such as buying a vehicle or something else, maybe they don't think well, also people like this maybe they take out loans to buy things they shouldn't because they have prestige that cannot be lost and makes them want to be stylish but force the situation, and in the end this leads them to their own difficulties.

Borrowing money for investment/business then it would be a YES!
Borrowing money for trading, gambling, buying wants then its a big NO!

You should really be that sensible on the actions that you are making and dont make yourself that too impulsive when it comes to things on which it would really be just that right that you should
really be that focusing into something that will really be beneficial for you on long term and not really just that focusing or minding into short term ones.
If you do know on how to maximize DEBT or those loans then it wont really be that an issue. There are really just those people who cant think up well on what they should gonna do.

Promise, i had that bad experience on making use of DEBT in a wrong way that even upto now im still paying up some mortgages on something
that arent really generating some profits or income on which it does give out that kind of a little bit regrets.

The mistake most persons make is borrowing money for consumption or to buy a car which is considered a liability, because it will never appreciate it will always depreciate, but using borrowed money to invest in a business or to acquire an asset is good, because on like the liabilities that depreciates , assets will always be on the appreciating side, it might be slow but definitely it will appreciate, using money to acquire a land then maybe after 5years you feel like selling it , definitely you won't sell it for that money you bought the land, the will sell it more than that price, but for a car you won't be able to sell it more than the money you bought it, you will sell it lower than the money you bought it.

You people think that Market always keep going up yes it goes but at some point when you atleast expecting the Market Will crash.
You need to realise that real estate prices are high becouse of DEBT it's not based on real reasons like...supply and demand ...but mostly pure speculation ...and If your House is 500k 600k or 1mil or just 100k it doesnt matter because what's missing is the real valuation measure.
So it all those prices been set for real estate when DEBT was high and still is high so the real estate are valued most confused ways nothing real behind the property valuations and in this situation the deleveraging will be happening so 30%-50% price crash can't be surprise.

That other side of taking loan is most of the time the reason why there's hardship in life, most of those young adults who barowed money just to be in style are mostly the one who can't acheived financial stability, unlike with those wise and straight forward people who thinks of the present as an investment to have a better financial capability when they retire or in a much earlier stage of life.

They are taking those loans as part of their plans, either to have a good business or to invest the money on something that they understand well that will generate better amount of benefits.

   It should also be known that not all assets will give you the  profit you require. Just like every other business and investment, you can also get losses from this asset, for instance gold, the price volatility of gold may fluctuate significantly over short period of time. This can make it difficult to predict its value and even make it a risky investment.  In the case of land anything can happen, government might seize or come take advantage of your property if you didn’t do a proper survey or have Certification of ownership. All this are possible scenario that can happen.
   In as much detail is good to invest borrowed money on assets rather than use to get liabilities, this will help you get back money to help clear your debt and also help boost your financial position to some extent. Buying phones and cars are not the deal. Rather look for something  that can help generate income times 2 of what you owe. Taking a loan for business is never a bad idea, after all every successful entrepreneur has been in the mercy of loan to push their business up. So never be ashamed to get loan to fund your business if you have to, see it as a way forward to get your business going again.

Yes, I agree. The borrowed money is often used for bad things like gambling, borrowing money to gamble, buying gadgets, used for bad habits etc. This is common among those who are in debt, so they are even more in debt.
Being debt is not always bad, it's up to you how you use the money properly to grow the money you borrowed.

Those people that does it lack of financial knowledge or education and that's why they're spending like that and don't understand that they're pulling themselves to the pit of debts. That's not how debts should be used because remember that if you can't it for cash like in gadgets, you can't afford it yet and much better to save money to pay it in full. And for the people that still takes loans to gamble, change your lives and don't be like that anymore. You'll have to change your mindset and don't gamble like that if you like to have a better life or be simple that don't take unusual loans.

this is called keeping cashflow healthy and indeed a lot of rich people out there are using such means, not to mention credit card that give a lot of flexibility to delay payment as well as giving very low interest sometime almost none thats why rich people could take advantage of it for capital in their business so they easily have access to capital and in great amount at that if they have exclusive credit card.
its simply easy for them to buy some properties for the sake of growing their wealth its really different for those middle class or lower, having that access to capital is just a dream.
thats why its easy for the rich to build an asset, quite different if it was people that are not that rich building asset is a nightmare in the process.

that's true, in my environment there are many young people who always prioritize their lifestyle because they want to be seen by many people, and also currently whatever is available among young people must be luxurious because it can make them confident, maybe it's because of their high prestige. So in my environment it is not strange that many young people are willing to borrow money just to fulfill their desires while on the other hand they do not yet have a job with a steady income. There are also young people who demand that their parents buy them the newest items such as cellphones, vehicles or clothes, but they can't see the condition of their families so like it or not, as parents they have to please their children, so many parents also go into debt to fulfill their children's wishes. So, in my opinion, children like this don't have good thoughts, because they can't see the condition of their family, by forcing themselves to be stylish so that they look capable to other people so they apply for money loans.

If they are still young they should be able to think about the future, what about the future that they have prepared from an early age,  with their young age they should be able to work and have a clear income not only for their own good, but by having a job having a fixed income will ease the burden on parents and we can buy what we want without asking our parents or borrowing money. by having a job with a steady income they can save or invest for the future.

That's the sad reality of our time: borrowing just for luxury or not using it properly. That's why I made this topic to give awareness to other communities here on this forum platform of ours.

And so that we can also see the other assessments of others, what are their personal views that are not in what I have said, and other criticism, if there is any, there is no problem. The important thing is to work together and give us our opinions on each other.

It helps especially to the readers who still doing the same, adjustment is needed if we wanted to allocate that money  for the betterment of our life,  just the same with what both of you are pointing,  using borrowed  money for the sake of luxurious lifestyle  will only bring burden to our finances, we should learn from that wrong perception and start thinking for the right  things to do, let the money works for you after borrowing either to create a small business or invest the money.

Some people thinks loan is only meant to solve problems for things that are not unproductive, loans can also be use to create wealth but most people don't understand this.  Most companies and and organisations they take loan to build and to become firm, and with the loan they collect they can make good amout of profit.  The challenges people are having is that they do not have a good business ideas on how borrowed money can be use to gain wealth.

Someone will be reckless in making a risky decision to use a loan for business or investment purposes even though you have the idea of planning to develop a business from loan funds, but think about the risks if you fail to manage the business because you don't have reserve funds to cover losses, then you must be prepared to bear two risks at once. Firstly, you failed to build a business or your business did not go according to plan but you have lost the loan capital and secondly you are responsible for paying off the debt on time if you don't want to pay high interest. However, I applaud productive business people who can build their business quickly and on target, so they can use a loan for a one year target in developing their business and you have to pay off the debt in one year too.

Another thing that happens in this case is that those who are in lower living conditions or strata of life actually tend to use debt just to make ends meet, which creates endless problems in the end.

Different views on debt like this will always exist depending on the financial strength we have so it is difficult to make some breakthroughs and build a new mindset because in the end even though it can be done, things like this are sometimes difficult to realize.
Because after all, we must realize that when someone who has a very low economic level and cannot even be sufficient just to eat, the last thing they will do is try to borrow. They sometimes know that this is a mistake but because it is the last resort they can do they cannot refuse something like this and finally surrender rather than their lives being threatened. Although not all of them are like that, but in the end there must be people who do things like this.

The thing is that it's a little hard for people to just make good debt out of nowhere. Especially for people with little to no safety nets. A great example of this would be middle-class income earners who would be able to practically take out a loan for a business that they may try to build, or perhaps a house loan for a property that they could rent out/flip for profit, but at the same time they don't have no plan b or a way to recover should things go south and their venture fails. It's one thing to take the safest route and miss out on the biggest changes in your life, but for some people it's just a massive risk that they can't take no matter what cause the drawbacks will literally cost them years of their lives.

Good debt can only work if you have money on the side that you can pay it with should you not become successful with the venture, and this is not being pessimistic it's just me being realistic about things. Perhaps the best way for middle to low-income earners is to just gauge their capabilities for debt and avoid taking loans as much as possible for any reason whatsoever. Cause for them taking a loan isn't staking a claim for a brighter future, it's literally stealing from their future selves.

People wont learn until they would really be experiencing those devastation into their lives on which its not really that necessary or something that can be avoided but this is really likely the case on which
people would really be just tending to stop on the time that they would really be experiencing hardship and not into those earlier times that they could still be possibly be able to avoid or stop those unfortunate conditions. It is really just that a matter of on how you do handle up yourself on such condition and made out those outright decisions on which you do see that it could really be that beneficial for you.
Wrong thing is that people do make out those wrong assessment and ending up on bad decisions just because they do let those wants to be mainly prioritize rather than on opting for
making some business or investment first when we do speak about loan money or debt.

loan is good way to speed up the growth of our business if the loan are being taken advantage of responsibly, but here's the thing some people can't get some meaningful money from loan because they don't have asset in the first place in which usually are being used for collateral. therefore some people are just able to get a loan and used for rather "unproductive" thing like fulfilling basic needs and thats it.
its different with companies and organization they took loan for the sake of growing their tools of production extending further their business capabilities which means higher income, that because they have massive amount of asset in the first place, the bank would willing to give them money because the collateralized asset is there, nothing to worry about.

In my opinion, having capital to buy assets or doing business using debt is not recommended because it is very risky. Unless you have a mature plan and strategy for the business or assets that you will be involved in, and think about and also have a very mature plan about how you will pay off the debt well and smoothly.
Because borrowing money for assets or for a business requires very large capital so it must be used by the right person, so that everything runs well and apart from that, you must also be able to choose a suitable asset or business. And it must also be supported by expertise, knowledge and experience in the field.
And it's also important to carefully evaluate the potential risks and benefits of using debt for assets and business, and consider your overall financial situation and goals. So it must be really thought out and planned carefully, and most of those who take debt for assets or do business are only people who have intelligence in their fields and are also rich people.

That's true, it's not advisable if you are unsure with the business or investment that you are going to use the loan money, there's research and good study about the venutre that you will going to try, it's not just a go and out investment as the loan money will be needed to repay and not having the source for funding it will be an added pain in the ass.

Knowing the grounds and having the strong understanding with the business or investment will surely help to decide well with how will you spend the money and how will you repay it.

Using a debit card for business is quite risky because not everyone is familiar with it, especially if you are new to the business and have no idea where to begin. It is not advisable to use the debit card. The ideal way for anyone who truly wants to establish a business is to conduct extensive study and learn as much as possible about the industry he wishes to pursue in order to determine whether or not he can afford it. We should exercise caution when choosing the type of business we truly want to pursue since one thing about business is that if a person doesn't have any expertise with it, it will just be losing money every day without showing his capital talking about profits. calculating his ability to pay for it by using the debit card.

Morever we should Being cautious about the kind of business we truly want to pursue is a smart idea because one thing about business is that, without expertise, a person would only be losing money every day without ever seeing his capital grow. Furthermore, whenever we decide to start a business or invest in a firm, we should avoid discussing about loans, It would be better if we just used what we could afford rather than discussing about taking loan from bank or cooperative.

I think this is what has been thought in a book called "Rich Dad Poor Dad " and I heard that Robery kiyosaki the author of the book in some podcast has 1 Billion in debt.

But to be honest, a fool like me Im just want to stay away from any debt and I would prefer to save in investment or anything else before buying something, or considered to get a loan with the lowest interest.

But Inflation keeps rising and anything becomes more expensive especially housing it is like impossible to buy without loan

Actually in this case before further talking about business we also have to look at the whole whether we are able to use debt properly or not.
The situation that occurs today is sometimes we ourselves are not able to do it well so that even good initial intentions with debt will go wrong because we cannot maximise it properly and in fact by getting into debt it will further worsen the atmosphere.
Indeed, controlling debt into an advantage for ourselves will be something very good but sometimes things like that have to be a lot of consideration because things like that are not easy and if we are wrong in stepping then we ourselves will receive failure.

It's true that not having enough capital shouldn't necessarily impede a good idea, and taking calculated risks can be essential for growth. While taking action is commendable, it's important to ensure that action is guided by careful planning and financial responsibility. Borrowing heavily for a poorly conceived business plan can turn courage into recklessness, potentially leading to significant financial hardship.

Loans can provide needed capital, but they also burden you with interest and repayment obligations. Ensuring realistic revenue projections and a solid path to profitability are crucial in managing the pressure of debt and avoiding potential defaults.

Daring to take risks is admirable, but blind leaps without considering potential consequences can be hazardous. Thorough market research, competitor analysis, and robust financial modeling should inform your risk assessment before taking on significant debt.

I agree with this, because in my opinion it is not only in this case, it includes other things. If you are hesitant or half-hearted about something you are going to do, in other words, you are not wholeheartedly sure, then usually what will happen is loss or bad luck, the same as doing business or starting a business, if you are doubtful or half-hearted about running it from the start. then there is a possibility that it will not be optimally successful, because feelings that do not wholeheartedly carry out what is going to be done, make you have bad thoughts that are afraid of what will happen.

Of course, if you need more funds to start a business, it's not wrong to take out a loan to continue the business project you are going to run, but you have to do it wholeheartedly or be absolutely sure that the business you are going to run can develop well, run well and be profitable. profit for yourself and of course to pay off the loans made at the beginning, and also of course to be able to develop and be able to produce, of course we have to manage the business as well as possible.

Everything should be in passion on which it do simply pertains on being that building a business on which it is really that going against into your interest or not really that your liking then you would really be able to tell the difference comparing into those things on which you do know that on your passion on which you would really be that interested on doing something to make it grow. You could be able to determine about
those main differences on which it would really be just that right that you would be sticking into those ideas. When it comes to debt then it should really be used on the proper way because
if you've been just taking up some loan for the sake of gambling or what then you are really just that putting up yourself on such big trouble. This is why it would be best or better
that you should be wise on where you would really be making use of those things.

Debt is something that a person should always avoid if possible. It is just an extra burden that can be a lifetime headache, so as long as borrowed money is intended to get an income source or boost current business it is okey. I have seen people trying to pay off his debt till his death and in some cases his children inherit this burden as well.

I don't understand what OP is trying to conclude here because I don't see debt as good or bad. If someone can pay off his debt in time even if he use that money to have some liabilities it shouldn't be any problem.

You need that kind of motivation in order to proceed with your desired outcome,  though we can't really say that we can assure that the business that we will going to put will achieved success as we also need to work more in finding the right way or the right approach making sure that it will not be an  missed opportunities that can cause us debts coming from the loan amount that we take.

Before deciding make sure to deeply analyze and have that thoroughly reviewed of what are the potential and risk, make sure as well that you are financially capable to repay your debt with or without that income coming from your newly setup business or investment.

The importance of motivation and careful consideration before venturing into a business is spot on. Being motivated and driven toward your desired outcome are important catalysts, but at the same time, realistic planning and analysis are essential for long-term success. But the businessmen must actively work towards finding the right strategies with a realistic and pragmatic approach. Business endeavors often involve uncertainty, and mitigating risks requires a thoughtful and well-informed approach.

The financial implications and having the means to repay any debts, regardless of the business's success, are things to take responsible on. This highlights the need for financial preparedness and a clear understanding of the potential challenges that may arise. In the world of business, a balance between motivation and prudent decision-making is key. Your perspective encourages people to pursue their goals with enthusiasm while being mindful of the practical considerations that can impact the success of their endeavors.

youre talking about bad unproductive debt where its just utilized for something consumptive not necessarily adding value to your asset worth as well as don't give you passive income of course it will be burden, i think what OP meant is that taking loan for buying something that gonna increase your asset worth and passive income instead, so that the debt will pay itself from the profit you get by renting a property for example if you try to borrow some money to buy property that actually has some worth since housing right now is needed more than ever and not everyone can afford to buy house many millennials are just renting house.
so basically you are taking some loan even though it seem like you are in debt but actually you don't really use that debt in consumptive way, if worst get to worst, then you can simply sell that property that's still in mortgage (its possible) and then be done with it at worst you just only lose some small amount of money.

That's true because if we do it with an interest in our hearts or desires for ourselves, I think we can be sure that what we do will produce something positive. Sometimes there are also people who start a business but not with their hearts' desires because of the demands of parents or other people and I don't think they will be able to accept it all at once  they need to adapt to things they are less interested in doing, but even so I think if it is for positive things then there is no harm, so it is necessary to adapt. I mean don't outright refuse if we really want financial freedom.

and obviously we also have a mind to determine which things are really good for us or bad for us because there is no way someone will choose something that is bad for them and if someone has a strong ambition to achieve financial freedom I think they will have a good mind and will also hold strong to the ideas and motivations they have it's true what you said that using the wrong loan will only get us into big trouble  but what do you think about those who don't have an emergency fund and when a disaster happens they need money to deal with it,  is taking a loan a bad or wrong way?
I personally think it's a risky way to go,  but if it's an urgent situation, there's nothing wrong with it because it's in your best interest.

I think someone who has the desire to start a business or business of course they have their own motivation, because as far as I know who can support us sincerely is ourselves  sometimes people don't care about the process,  they only see the results not the process. and in my opinion we really have to work hard to be able to achieve success, because I think everyone wants their life to be successful well, therefore we should work hard  because financial freedom of course that's what everyone wants I don't think there is anyone who doesn't want a good life including the future too.

that's right this needs to be paid attention to especially when taking actions related to business,  because that will determine the business that is run in the future many people do not analyze or consider the actions they will take until they experience problems that cannot be resolved properly  including by taking out a loan to start a business This clearly needs to be considered carefully because otherwise it is possible that the business you are running will not run well, and as a result there will be no profit for yourself and to pay off the debt you have made.

If you are really that mindful about into your future then it would really be just that fine or normal that you would really be having those kind of advanced thinking on how you would really be making those things
to make it happen in the future on which you would really be needing to be wise when it comes to spending on which we do know that this is really that needing to have that kind of decisions on which
not all people would really be able to do so but rather they would really be focusing into things on which they could really be able to make their own and would satisfy themselves without having
those kind of plans into their lives.

Bad debts and Good debts, it would really be just that impossible that you cant really be able to make yourself that realize on determining about the two.
If you would really be going into the path that you would really be making such lavish life and making debts then you would really be ending up on
wrecking your life with.

You think, the debt will tell you that this is a bad debt or good debt OP, the movement you invest that money you loan from the bank or cooperative societies to any particular investment, just know that you are embarking on big risk that will take a long time before you can escape. I will not advice anybody to loan money to start an investment but if relatives or friends loan you without interest on that loan, I don't think you have anything to worry about if you can invest the money on a reliable investment that will give you back the capital. I prefer to work hard to get my own capital to start that investment of my dream than loaning a money that will not give me rest of mind.

Taking out loans carelessly will of course be a problem for us in the future, including our future, even though it is said to be in the short term, bad things could happen. especially by using debt only for unimportant needs, such as to fulfill style desires, I think this happens to many young people today, they tend to prioritize style over needs so that quite a few young people have debt.

In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.

Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.

It worked for Trump apparently.

He (robert) says you take loans from the bank, not from random people. I think this is because they are less likely to sue you than an agitated person who wants their money back. Whereas the bank has a balance sheet that will get part of it wiped out if you default and have other effects.

It is quite spartan if you ask me, and I wouldn't try this if I were you, because what usually happens with most people is their loans are only small since they have no collateral, and then they get sent to collections, repos, etc.

Agree, for someone who has no business, just use the money in the right way especially if you are having debt, Always think carefully where will you spend the money so that you'll be having no regrets in the long run. Having a loan and debt is not bad because it depends on your capability, how and where will you use the money that you want to borrow. Take note that we need to become responsible in our own funds to avoid huge problem in the future.

Well, the reason why rich people use debt to buy assets is that they are not gonna pay for taxes. But this actually depends on where you are and what country you are in. We all know that banks aren't fan of poor people, why? It is because poor people don't have collaterals that will allow banks to lend you money to start buying or investing in assets you wanted.

It is good to stay away from debts no doubt about that just like staying away from stress but this is what rich people are doing to evade tax.

Financial ruin awaits those who use debt to justify lifestyle choices. If you construct a house on sand, it will collapse. You're right about teens valuing style over substance. “Yes, those new shoes look great, but are they worth the debt around your neck?” Its worth considering, right?

Debt isnt always bad. Like a hammer, its handy in the right hands but lethal in the wrong ones. Investing in a business, education, or something that appreciates over time? Using a hammer to build. What about transient desires? The thumb hits your financial future. Everyone has option, no doubt. Power brings responsibility. Its about striking a balance, seeing beyond the moment, into a future that we're constructing with each decision. Smart money management is also savvy life management.

Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.

I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.

thats why consumptive loan only can be taken out in small amount but loan for business can give you millions if your business is thriving even the bank wanted only people that have the mind of growing money to borrow more not those that are consumptive and just buying some branded stuff and then struggling to make ends meet at the end of the month.
debt should be utilized wisely, loan is good for boosting the growth of a company, it could literally turn from small company to middle sized ones if taken properly.
the thing is that, so many people are taking out a loan for the most useless thing these days, even games and some branded luxury stuff that gonna lose value in no time.
only then it becomes problematic.
but if its for creating asset, i mean even if our attempt failed, we can just give back the asset we bought liquidate it in form of money and use it to pay up debt with a little bit of interests.

In the first place, there is nothing wrong with borrowing as long as we know how to pay the debt. Now, if we go into debt just because of the luxuries we want, for me, it is not practical or a good habit.

But if we take a loan for the business we are going to do, as long as we are sure that we will be able to grow it even with difficulties and if we are determined, we can take a loan if the money we can pay off the loan will come from the business we will build. I think it's fine, in my opinion.

Well, I am one of those people who is against debt because whether I use it for good debt or bad debt it will remain in my mind and it will add to my responsibility list to resolve. If we don't have a backup income to pay our debt then it's better to not debt to anyone, dont forget to add risk management skill so you can lower your risk of losing your borrowed money.

What I catch about Good Debt is that more like an investment where we look for investors to invest in our idea. Getting an investor and borrowing money are two different things because if you have an investor you can use the money without feeling chased by someone but if you borrow money its like being chased by someone and under pressure from that person, it will disturb your mind and make a horrible decision. 

It's not fair to label those people as stupid. But those people are the type of people who want to flaunt their possessions and impress others. Which is commonly found in the society. These people are more interested in seeking praise from others by buying new gadgets, cars, and other luxury items to appear wealthy. However, this behavior can lead to a significant amount of debt that may become unmanageable in the long run. Therefore, it is not a good idea to indulge in this kind of behavior.

Choosing not to have debt will indeed be very good, whether good debt or bad debt, as you said, if we already have debt, of course we are obliged to pay it and this will increase the responsibility we have because this becomes a burden on our minds which makes it difficult for us. in paying it off if you don't have enough income to pay it.

If we are looking for investors who will provide capital for the idea we have, of course we have to look at the agreement first, just like looking for a loan at a bank, because if someone lends money without having any agreement, of course it is not possible, so we need to look at the contents of the agreement. whether we can handle it or not, because if we are unable to follow the existing agreement, it would be better not to go into debt because it will be a burden for us.

Why is this man so popular recently? I saw many posts and threads about him and his book Rich Dad Poor Dad. Keep in mind that the law about debt is not the same in every country. His aim is to promote book and sell as much as possible to gain lots of profit, I wouldn't invest in his book but to be honest, his advice about debt is good and will help many people to understand its benefits.

That's not true. There are really good and bad debts. Have a look at companies like Apple, their debt is $111.08 B. Are they crazy? No, for sure. Debt is an art that one has to master. There is a difference between debt that person takes to buy a brand new iPhone and a debt that company takes with different purposes.

I'm not really into finance and not fond of books as well, but I have heard enough about his book why it become a best selling finance guide. It does gave a lot of people an idea how to handle their finances and debts, but a lot more people have become successful which didn't accumulate a lot of debts that didn't know about the book or even Robert Kiyosaki. With or without the book, becoming successful financially depends on how passionate a person to his goals.
Debt is really addictive and tempting especially when the banks noticed you have a good account standing, they'll start offering you various types of loans and I consider it as a bad debt already.

I think that the credit rating has been made by the financial institutions to make people think that it's totally okay to take debts, whether it is good or bad debt as you've said.

But as I understand it, if I can't pay it in cash then I won't take things and won't be buying it. The difference today is about having a peace of mind and obligation that you'll be taking.

If you pay a lot of bills and you want to add up something to your life by taking debt, you must have planned it well. No one is going to stop you from taking those debts for your personal matters. And I am with you about having the increased responsibility and that's just my personal choice of not taking any as of the moment.

robert kiyosaki has been famous since long time ago when his books dropped quite literally he is covered in many youtube videos but I do agree with you though investing in buying his book, not so much of a value there, the gist of it is just taking loan for growing asset, moreover i think robert kiyosaki himself earned quite hefty amount from selling book alone that I think even if the strategy he mentioned didn't work out he could just cover it with his own money and call it a day while his book consistently become a hit.
honestly at the end of the day growing and creating asset is as simple as investing in a productive asset and just taking loan for productive thing, not spending on some rather useless thing like latest phone and so on then we can thrive with productive asset that grow its own value.

At least at this point, you get the sense of the importance of borrowing in the right way and not for the wrong reason. Because I am also in debt, I made it possible to use what I owed in a business here in our area, and even though the capital I started was not that big, by the grace of God, the business still exists and continues to operate. which I have now had for over a year.

It is not advisable to only use it for non-business purposes, except for emergency reasons. We really need to be wise in using the money we borrow; don't make hasty decisions.

Exactly, having such loans just for liesure will adds up responsibilities and instead of enjoying your day job salary it will be an added obligation to pay for that debt, it's better to be wise and use the money you loan for betterment in life, a good way to finance your future, just a right venue to capitalize your business or your investment.

Let your loan money to work on his own to repay the amount, not an easy task though, but doable if you do your research the right way.

One of the worst kind of debt is debt gotten from borrowing just for consumption. Better to borrow to buy or invest in stuff you are certain will be profitable or will pay back the debt before the end of the debt repayment period. So, another problem in borrowing is the uncertainty of turning the borrowed money into profit enough to repay the loan before the end of the repayment period. This is why it's important to master whatever business you choose to invest in with borrowed money.  And this is one key information lender should be looking out for before lending money to people.

In regards to borrowing to buy smartphone.. it's really not a bad thing if the phone is good and used productively by a borrower who knows what he/she is doing.