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Borrowing or taking loans is not bad but being a debtor is where the problem lies. What I'm trying to say is that, it's normal to be in need and borrow when you lack, but owing for too long or not being able to clear your debts at the appropriate time, is the problem and can be very embarrassing. Now that's where Debt management comes in, Debt management to my understanding is a process where by one plans strategic means of attending to their debts thereby avoiding numerous debts and be debt free.

 Dept Management is something every human is supposed to be aware of so as to help tackle the problems of being a debtor. Left for me, one who is in debt is like a slave and is bound to face being embarrassed if not they don't apply debt management. That's why before one should take loans, there are many things that's need to be considered. However here are the necessary steps people should take to become debt free;
 Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Avoid spending beyond your budget: this is also another way of debt management because when you spend only what you can afford, it would help you from being a debtor cause you'll be more focused on things you need.

Do not borrow funds to clear debts: doing that automatically makes you acquire more debts and it keeps accumulating because you won't seize to acquire outstanding debts, it would continue to go in cycles until you work hard to earn and become totally free.

Clear debts on time : no one is above being in debt, however one shouldn't settle with being known for a debtor, it brings embarrassment and could cause emotional trauma, therefore one needs to keep tracks of their dept and work on paying them off, beginning high interest debts down to minor ones, needs to be strategic with clearing their debts.

Right choice of investments: investmenting on the right business is just like saving for the future, cause you'll always have a financial support to fall back to, and also avoid taking loans, therefore the right choice of business would guarantee you have a safe heaven rely on instead of taking loans.

Make wise spendings: Consider your financial strength before purchasing items, purchase only items that are of needs not the ones that don't match your financial strength.

 Another way of debt management I could think of is to learn to make proper financial decisions, one should educate themselves financially about  investments and how to plan financially to be debt free.

 Here are some debt management charts to help you understand further.
https://i.ibb.co/sC9T09B/images-7.jpg (https://ibb.co/C6KjkKr)
https://images.app.goo.gl/SrXEfxH6TghMQ5JN6


https://i.ibb.co/BV2ryRZ/images-11.jpg (https://ibb.co/gMZPSCT)
https://www.google.com/imgres?imgurl=https%3A%2F%2Ffastercapital.com%2Fi%2FMastering-Debt-Management-Strategies-to-Conquer-Interest-Shortfall--Understanding-the-Importance-of-Debt-Management.webp&tbnid=F0OKGlIo-js0SM&vet=1&imgrefurl=https%3A%2F%2Ffastercapital.com%2Fstartup-topic%2FImportance-of-Debt-Management.html&docid=P-4lD9dQy_YHRM&w=1350&h=759&itg=1&source=sh%2Fx%2Fim%2Fm1%2F2&kgs=29fb4c3855f0be51&shem=abme%2Ctrie

                                    In Conclusion
 The concept of debt management isn’t talked about often, this is why most people dwell so deeply in debt and they can’t afford to pay it off. In worst cases where the debtor can’t pay back, they tend to take their life, giving up so easily just in the name of frustration. Sometimes taking debt can be a way out for one, that's if you have an innovative mind and know how to utilize the resources given to you. Some people just don’t know how to manage funds, borrowing money to clear debt or to fund your lifestyle isn’t just the best idea infact, it’s just the beginning of your borrowing cycle. If you don’t have any reasonable plan then there isn’t any need to go for a loan.

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us

debt management is something that is important for individuals or businesses, because debt management will allow individuals/businesses to be able to buy or achieve something without having to interfere too deeply with their finances. however, sometimes individuals/businesses can experience problems with their debts due to poor management of this, and when this happens it may disrupt their financial condition because they need to resolve the problem immediately.

and because of this, it is important for individuals/businesses to be able to have productive debt, which means the debt is for profitable things, not for consumptive needs which are not really needed.

It couldn't be better summarized. For the average citizen, the best thing to do is not to get into debt, the only exception being to take out a mortgage to buy a house. The rest is best avoided. Consumer loans will only make you poorer and are crazy from a financial point of view. And "good" debt, as advocated by Kiyosaki, most people on the street do not know how to handle it.

I am actually not a fan of getting into debt to be frank, because it makes me uncomfortable knowing am owing someone, so to me, it's very necessary to cut my coat according to my side, by reducing my expenses and making sure I don't spend more than what I earn, in that way I will not even go into debt in the first place.

Another thing about bad debt is that, I mean the debt you took to consume, it puts you in a very tight Conner, and any money that gets into your hand will be use to service debt, which makes it likely for you to get into another one again before month ending again.

Lastly, even though it's a good debt, I don't really fancy it, because it puts you in an unnecessary pressure just to deliver, and pay it off on time, and it's very wrong to borrow any money to start off a business, because you are not really sure if the business will succeed or not, so the whole idea of borrowing is actually not my thing.

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes. One can get a contract and the nature of the contract may require you to use your personal funds and execute the project before the company or organization will pay you so in that situation, if you don't have money you can borrow in other to clear the project knowing fully well that after the project your money with be paid immediately.

What makes some people not to pay their debts is always waiting for the due date before they can pay off their debts, imagine if you borrow money for an interval of a month hoping that within this one month that you will sort out the money to repay and luckily for you just within some few days after taking the loan you were able to make some money and instead of repaying your debt immediately, you begin to reason that the debt will be due in a month time and of which you are hoping that before then you will make another money to settle the debt, peradventure, you may not be able to have a source to pay back your loan again.  Another thing is not making part payments of your loan at different intervals before the expiry of the loan, making part payments of your loan also gives you the ease to pay off your loan without too much pressure especially when it involves a huge amount

If debts can be avoided it would be very a wise move because it would be a sorry tale for one to be in poverty or be limited in funds or income, and then they borrow funds just to either sort their problems or gamble away with it.

The best ways to pay back a debt has always been to start from the smaller ones to the biggest which would later be divided into bits and paid off. Avoid bad debts, but good debts help an investment plan to go smoothly.

In life, mistakes are bound to happen for corrections to be taken, avoiding mistakes totally is not guaranteed in life,  being in serious debt is part of the mistakes people make in life therefore Debt Management is a procedure used in tackling such challenges. Debt is a challenge among countries, business individuals and normal people, that's why there's a term called Debt management to help tackel such challenges.

 You're right when you said many people get debts for things they don't need, it happens mostly among addicted gamblers and people who live beyond there income, so there's no doubt about that, but there's some debt that's inevitable like credit card debts, debts in tuitions and businesses, however it's important to learn how it strategize balance them, failure is inevitable but taking correction is most important, likewise some debts can be inevitable but applying debt management to help tackle it is very important.

 All those things you've mentioned ie makijg budgets,  cutting expenses, saving for future purposes are methods of Debt management, but there are some debts that occurs due to emergency expenses and if your savings is not enough one could be forced to take loans and go into debt however seeking means to pay off and be debt free is most important  that's where debt management comes in.

Basically, getting rid of debt is not something we should 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 not always a disease, but you have to be wise about debt. The point is that debt should not be used for consumer purposes, but debt for business is never wrong but of course there are many considerations. Many successful entrepreneurs use debt to do business, and even countries use debt to build infrastructure, development so that society is prosperous.

The only time I would consider "borrowing" money as an option is if there is no interest. Otherwise taking a loan (borrowed money that has interest) is a terrible idea. It is even a worse idea in countries with low inflation rate and a variable interest rates. Because that is the recipe for disaster.

You first need money so you take a loan from a bank. Then you have to pay back a bigger sum because of the interest you have to pay back the banksters. But all of a sudden they decide to increase the interest rates and you would be forced to pay back even more.
That means all your plannings and the techniques you talked about becomes meaningless because there is no way to catch up with the increasing amount of each payment.

In fact this is one of the main reasons why the number of homeless families are increasing in the West. They take loans, mortgage, and live hand to mouth to pay it back. All of a sudden the interest rates go up and they'll have to pay back even more. And when they can't afford to pay it, the bank takes their home and they'd have to live on the street!

Everyone who take loans have the mindset of managing the debts well and not using the loan money on something else but once we took the loan we forget what we promised and change the lane to somewhere else. So better not to take loans at all if you want to avoid all these confusions and if not then you need to dedicate yourself to pay the debt on time no matter what.

not everyone is like that, friend, because there are people who take out loans for things that are not really necessary, such as wanting to fulfill a wish, in my opinion there are people like this, because in my environment there are people like this, they want a different style luxurious to the point that he borrows money to fulfill his style, whereas when he has debt but his desires are not reduced, and when he has money he does not pay it but instead fulfills his desires again. That is a problem of course, therefore if you really want to take out a loan then you have to first see what you are going to do and what the money from the loan is for.

Actually, in my opinion, taking out a loan is not really bad, it's just that many people are in debt because their finances are unstable and because they lose responsibility for the actions they have taken before. It is true that it is better not to take out a loan, but when finances are unstable and we experience a disaster, like it or not, we have to do this with the aim of overcoming the disaster that occurs. This is all about accountability which must be good.

I've got no idea how credit card debts are something inevitable lol. If you're planning to use your credit card in the first place, considering it as a debt is wrong since it's something you should be paying off monthly. A business investment can sure be a worthwhile thing but only when it succeeds and taking loans on the "assumption" that you will is just, well, dumb. Student loans, on the other hand, are something that's not really an assumption since it's a streamlined process that an institution almost guarantees for you to succeed in as long as you don't give up midway, so in a sense, it's something worthwhile. Sadly I don't know how the specifics work since I don't think our country even supports it (they instead use scholarships I think?)

As long as it's a situation where you can't guarantee the process, then it's not something I'd go under debt for, at least for the most part though. Rich people often use debts afaik to avoid taxes or something? Unless you're at that level I don't think you'd ever use an "assumption" to support the growth of money you borrowed. 

The possibilities of debt management is the rhythmical conciousness that you'd always and keep working and paying back your debts which would either not give you the privilege to save from your incomes until you clear your debts and also the fact that if you don't pay back at when due then your debts would keep accumulating and always be there with a must that YOU MUST PAY BACK YOUR DEBTS.
Frustrations or suicidal commitments wouldn't be the solution to it because there'd always be family on your side you'd bench your debts on to MUST PAY BACK YOUR DEBTS.
In as much debts or loans doesn't bring forth productive outcome or not for an emergency reasons to save life then it's not worth it otherwise you'd keep on loaning and regreting at payback times.
 As much as I know, it's Irresponsible being surrounded with debts with the inabilities to payback.

Being in debt is difficult if you don't know how to properly manage the money you borrow, because in the end, the result will be that you will be buried in debt for sure, and it will only make your head hurt. And don't go into debt if you only use it for the luxuries you want.

But if you take a loan and use it in a business that you know you can manage properly and grow, this plan is even better because you will allocate it to a business that will produce money that you can still use as a source to pay off the loan. I think this is correct.

I humbly agree with you here. If there is way, we could all avoid debt that would be the best decision we will make this year. Debt is not a friend of anyone. The moment you start incurring debt the more you become addicted to taking loans and borrowing money. I am in that shoes and i know how it feels. It will slow you down from your goals and target because you have to pay interest when you have not completely paid off the loan.

Only few persons get into debt because of things they can't afford but they don't really need it. Many take loans for good reasons. Its either health related issue, insurance or business and so many other. The problem in debt is that it's difficult to maintain consistency in paying off the loans because other life expenses will come along the line which may make you to shift the time you were expected to pay the loan to a longer period.

I come from a culture where taking loans is generally frowned upon and considered unsafe, so it's hard for me to understand how people in some other countries often live with a lot of debt and that's just a normal part of life for them.
The problem isn't just with owing for too long. There are also very unfair loaning practices where you can take a small loan without reading the fine print, committing yourself to a terrible interest rate that just gets bigger and bigger.
I believe it's best not to borrow money unless it's an emergency with no other options. But maybe the op's advice can be useful for people who take loans and live in a different society where it's the norm.

Spot on, I often find myself thinking what could make people to be proud of being given a high credit score by the banks they use? Since this only means they are good at taking and repaying their debt on time, a much better approach would be to avoid debt as much as possible, with the exception of a mortgage as very few people can buy a house with just their savings, save some money, invest it and then buy whatever you want without the need to worry about paying your debts back.

the word debt management and the charts are not about avoiding/clearing debt. its about juggling debt proactively

but being in debt should be thought of as something you should get out of and not have.. not something to juggle and stay in..

the charts in OP say consolidate debt.. this is the same as borrow more to pay off debt. because the consolidation company pays the old debt but then hands you a new total you then owe them, these companies pay off your debt at discount but then charge you for them becoming your new loan company

the charts dont say anything about avoiding debt entirely, they use words like "consolidate" and "monitor credit score"
the only avoidance is when they say avoid excessive debt.. **

if you simply do everything you can to clear debt then you dont need to juggle it ongoing nor have/need a credit score


** the biggest need of credit scores and juggling debt is to get a mortgage.. a mortgage is usually the biggest debt people will ever have. so if they believe people should continue having managed debt to juggle around to get a good credit score to then get a mortgage then its just subliminal messaging about staying in debt to then get a mortgage (get into excessive debt)
thus not a solution to debt

consumptive debt is really a disease in every person's life its just gonna make living a hell, never crossed my mind to have debt just because buying some random luxurious expensive thing that just gonna have no value within a decade thats definitely not a good idea but seeing current trend so many people are willing to take on such debt just because they can, definitely not a good way to go when we are trying to accumulate wealth and spending unnecessarily for debt + interest, this means some sum of wealth off our bank account and also means harder life moving forward.
I do agree people should control themselves from having debt in the first place if they can, if we are talking about taking up on a loan just because emergency thing and we all know entrepreneur need a loan exactly for that then its fine as long as its calculated.
but being consumptive and buying all those luxurious thing with a loan definitely can only be done by someone who tries to make their life miserable, always take loan responsibly that is the key.

@OP thinks he's Robert Kiyosaki >:D.

https://imgbbupload.com/i/88dVA.jpeg

I still see many users saying it's good to borrow money for business and also in other medias we will heard that too, but actually borrowing money for business is also bad. The reality is you can start your business as small as possible, start from your house and only buy the tools or materials that you need. If the business need certain amount of capitals, you can create a proposal and submit it to investors, or you can find venture capitals that willing to invest in your business.

In reality, it isn't really that easy my friend. Getting venture capitalists involved is even worse than actually taking a loan or burrowing. You see when sales don't meet up, the venture capitalist doesn't care, all he wants is his interest at the end of whatever agreed period you two have. This can also make you go bankrupt too.

You see, I also used to have this mindset, " I just have to save, I can do it with my money" but I learned in Economics class that people who usually go into businesses actually earn on other people's money.
70% loans and 30% of their income. Now, isn't people who lend tis money want to be paid in different ways. Some want a percentage of the business earnings others want to be paid back their money with a specific interest after some time. You as the owner of the business just have to make sales and keep reserves. Going into debt is usually because these businesses can't manage their earnings properly. Isn't it logical to fill up reserves for debt payment first before you start earning from your business?

If you start and continue business with your own money, there are a lot of opportunities you'd miss out on, and you may never get to expand. So burrowing is very important in the concept of business, we just have to manage it properly.

I agree with you, I am not a party to loan but don't see it as bad one but loan is best taken when you have good job that can cater for it in case of necessity to remit back or best way is to mortgage our income or salary where the effect will not course you much harm.

People don't take loan for pleasure except there is people of such that I Amy not account, those that fully involved in it have one reason or the other for such, just as many has started any loan taken  has it purpose, and  should not be override or rule out to avoid the consequences of inflation only those that don't know the purpose of a thing can abuse it.

Loan has help many to them that know it value and has also curst sorrow to them that felt it's of pleasure do as others does without any purpose for it.

 life is two sided the way you choose that work for you may not work for another , my opinion is that who ever that take loan shouldn't take because others take let, it's motives should be achieved to avoid hard I know at the end.
In everything moderation is necessary despite the purpose for loan one must be able to manage the process before it gets at of hand and become uncontrollable situation.

This is not an excuse. All investment ideas should include free money that will not affect your standard of living, especially the life of the person or organization that lends you the money. The fact that you don't have money to invest is just your problem; you need to learn how to solve it yourself. After all, things may not go according to plan, and you don't know what will happen tomorrow. I don't know the term "debt management." But I have heard the term "public debt management" or, ultimately, some kind of organization. You, OP, are confusing concepts by complicating the post with pretentious words. A normal person needs to learn to live without debt, and only after that should they think about some kind of investment, nothing more.

The solutions you have suggested are quite good and implementation of these might lower the risk of the mishaps that happens during the debt management but the point here is that the risk and uncertainties can't be avoided.

The biggest problem in debt with interest is that the compound interest which most of the banks work on while giving loans multiplies with the tenure selected. It will not see what your problems are. It will not see whether you have got the money right where you wanted Or not. It will not see whether you've invested right or nor rather it will just multiply.

Debt could be a good asset instead of being a liability if you are smart about what you are doing. Last year the interest rates in my country were so low, you would actually lose money if you didn't take any loans. Since the rates were much lower than the inflation, the prices of goods rose even faster because of that. Everybody was borrowing all the money they could at that time. Normal people bought silly stuff with the money they got from the banks. Smarter people made investments; bought stocks, crypto, gold with it. Some even expanded their business and increased their capacity. These people made a killing thanks to that cheap money. (I made my fair share too)

There is no good reasoning behind thinking that one must take out loans and be indebted to invest in an asset that is expected to bring double returns. That's just greed.

Anyone willing to be wealthy and not in debt should first learn to live very contentedly with whatever it is they currently earn, before the thoughts of saving and looking for other ways to save, so as the urge to touch the funds would be countered.

It is while trying to be something we are not or trying to conform to the standard of others living that we often times go as far as borrowing to cover cost and that begats many other children ones one has learnt how to start borrowing to get out of problems.

Avoid bad company of friends who may cajole you to spend past your normal limits and take out loans just to belong to their company. They are part of debt crisis contributors that we should avoid at all cost.

I agree that it is also bad for businesses to start with loans but at least it makes more sense that way because you are at least running a business and are just taking bigger risks. And if you are good at it and can succeed in your business, you can both pay back the loan and make good profit.
Considering how there are good number of successful cases, I dare say this is not the worst thing to do.

Debt can be considered an invisible disease that builds itself into our lives and causes us financial, mental and relationship troubles. Constantly relying on credit is no different than being addicted to drugs - it is very likely to become a habit immediately and will slowly but surely destroy your ability to control your money.

Better yet, we should aim for a frugal lifestyle and stay away from debt, especially loans for consumption needs. Debt should only be considered for business development purposes, but should also be carefully calculated and carefully managed to ensure efficiency and avoid risks.

When you run a business, good debt management is a key determinant of financial stability and predictability, allowing you to achieve your financial goals while maintaining a level of security. current finances. The problem is that it is not always that simple and one must be careful enough not to be trapped by certain consequences if the issue is not taken seriously enough.

Even if you are good at what you are doing—I mean, good at handling the business—I still see a very great risk in what you are doing. I mean, good at handling the business.
 
I still see a very great risk in starting a business with a total loan of money. If the person has a little start-up capital to start up a business and sees how the business is moving from there, they can move ahead to get a loan, which they can easily pay back based on the business progress and estimate. I see that as way less risky than starting up a new business with full loan money that has interest attached to it.

Loan is something that cannot be easily avoided especially when the economic situations are very hard, and an individual is not earning enough to cover for their daily expenses. But before you request for a loan, make sure you already have planned in your head how to pay back so that the burden will be lesser. If you take loans without plans on how to pay back, you put yourself in a very difficult position because the money may be difficult to raise.

There are many people who have the habit of taking loans that they know that they will not be able to pay that is an example of irresponsibility.

This is what often happens in the community, because they prioritize their lifestyle, they are willing to do this to be called socialite, without thinking long about the effects it will have in the future,
The trend is the word for this kind of lifestyle in my country, life is difficult, elite style

There's something that some people do that I don't even know what to say. I have seen many people and a few of my partners involved in such a habit. The habit I am talking about is "unending debts."  Some people find it very easy to collect loans, but they find it so difficult and terrifying to repay the loans that they have collected, so they keep on extending the loan and even taking more loans from other sources too. 

We know that this time around, the economy and cost of living are not as friendly as before; therefore, it is even more important now to cut down on costs and spend wisely with budgets. I understand that some people are faced with situations where they just need to take out loans, but what is important is that debt should be paid off as soon as the borrower gets back the money they were expecting to use and repay their debt. 

For example, something happened to me last year. Since I was into furniture business, I met someone who was into a similar business like mine but not really the same future business. He proposed a business idea to me, and I bought the idea. I did not have enough capital to fund that business idea, so I took out some loans to add up. I got so unlucky that the business did not flourish as expected, and as we speak, I ran 80% loss in that business. The man who proposed the idea to me has agreed to repay me the money I lost, so he is in debt to me. Meanwhile from my pocket, I have already repaid the loan I collected to fund that business.

Situations happen that make people to take loan, but it's wise for someone to just manage their budget and repay their loan. 

Do not borrow funds to clear debts

This is the problem that i have made out back in the past on which i have taking up some loan to pay up another loan on which this is the greatest mistake that i have done into my life.
The interest keeps piling and this is something that the hardest days in my life because it did really comes into a point that i havent been able to make myself able to pay up
on monthly basis. I did come or reach up into a point that banks had been calling me almost everyday and its really that something very stressful thing for me.
I cant really be able to sleep up well.

On the time that i did make up some solution then i have gradually be able to take out the shackles of debt. Its true that you would really be needing to be wise
for you to be able to get out of debt.

Debt is something unavoidable circumstances, we can go into debt by either having much population in the family where our normal or monthly salaries doesn't long foot our bills or could be either we are living a kind of extravagant life, where we want to compete with people that is above us then certainly we can't escape debt. If we avoid being influence by friends then we can not live a life full with debt, but normally there are types of debt which involves taking loan. Taking about your yearly or quarterly income is a very risky thing to do because definitely it would affect our ways of living, where we could be striving our best to meet up life and as well trying to clear the debts we find ourselves into could be a challenging altogether. So we should be able to live within our standard than taking unecessary responsibility upon ourselves by leading us to start living debted life.

To add, it's way easier to borrow money from different lending apps these days, that the average Joe earning a little bit from his work will always be tempted to borrow and get himself into a huge pile of debt. Even if it's not something important, people nowadays will borrow money from these lenders and get themselves paying a huge interest. I guess the availability of such institutions somewhat fueled the interest of the population in getting into debt.

If I were these people, I'd borrow money only if needed, and reduce my spending until my debt is paid. Also, avoiding multiple loans at once is smart because it only pulls you further back rather than advance with your financial situation.

As it has been said, some people get into debt without knowing or due to emergencies, while others do so due to low income. Debt is like a disease that needs to be avoided, but to consider, many salary earners survive mostly on debt, and after they pay it off, they still borrow another one that is caused by the low income of the victim. As you mentioned, some people get into debt just to get what they want, which is the greatest mistake to make because even with the planning and budgeting, without consistency, it will never work out. That is why being consistent is also part of the plan. 
 
Moreover, for those that are most likely to get into debt, the solution for them is to fine more sources, which will sometimes still depend on the location that you are in, because if you are in a place where you can’t work in two different places just for the time zone occupied, or the work load, You can’t engage in two sources of income because you will be highly stressed, so working again might be hard to accomplish. 


This is what is called an addiction to more problems than the previous one, although it has already been a regret for you. But how on earth can you think collecting another fresh loan just to pay off the previous one can solve the puzzle? No, it can never happen that way, which will only increase your debt, or you will continue to stay in the same position without moving because you have created a critical problem for yourself that might come up with some health issues for you again, like depression and many other health issues. 
 
Because when trying to collect another loan to pay the previous one, you will want to add more, and after you have paid the debt, you will still have some funds left to do other things. Instead of solving an issue, you have directly increased the number of issues because, if you know you can’t pay the outstanding debt, why collect another one? Although it has been a while, I know even you yourself will not like to be in that situation again. 

Having debts is never pleasant. It’s so easy to take and accumulate them but so so difficult to pay up the full amount when it’s due. And for someone with a single income, it can be detrimental. It doesn’t really matter if the income is steady, you’ll always have the burden of parting away with some of your money to service a debt.
It’s advisable never to be in debt but obviously, issues arise that needs to tackled immediately and for some, there is little option than to go borrowing to quell such issues.

The problem is that people don’t borrow unless they really have to. They do so out of fulfilling a desire or a want and end up with debts. Debts they cannot be able to comfortably pay back when it’s due cause of their spending habits.

Honestly, I don’t remember ever falling into debt because I don’t go for something that isn’t on the same level as my pocket. Indeed, if we want to start digging, the debts are normally coming from things that one can live without. But everyone doesn’t think the same so while you’re thinking you shouldn’t be in debt, someone thinks their debt isn’t really a lot and is considering taking more. I can’t imagine spending future money in the present.

The reason why some people continue to be a debtor is that they don't actually know they are financial capacity before they obtain loan, so therefore I believe that for we to become a debtor is because we don't know they gravity of our receiving income, so what I'm trying to say that before you take a loan you should know your ability to repay the loan because some people does not repay their loan when they collected loan from people, for me it is bad for someone to not be a sincere, so if you know it will take you long time for you to repay your loan it should be better for you not to take loan.

To be a debtor is very big disease and I cannot acknowledge such that somebody should continue to be a debtor through loan, it is better for we to strategize very well so that we cannot be taking loan from people it is when you are in need of capital to support your business is when it is advisable for someone to take loan, but takingoan constantly I don't think that is encouraging and supportive for me, in summary take a loan that you can easily repay and free yourself for public embarrassment.

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

One key thing that you seem to have overlooked and is a major fact in debt is the repayment rate on that debt. Choosing the right type of debt, or even your ability to access certain types of debt, can be a large factor in whether it is a good form of debt for you. Take mortgages for example, probably the only wise form of long term debt that you should take on if the price is right, it should be much lower than most other loans and the underlying asset might even go up higher than the rate you're paying on it. Depending on what brings you enjoyment in life, a new car loan can sometimes be found at 0% APR from the manufacturer because they are able to sell another vehicle which has a built in profit margin already, however the fact it depreciates quickly would probably make that inadvisable.

It's strange why there are still people like that nowadays, even though everyone knows how to spend money the right way and doesn't need to make things they don't need for themselves. Credit cards are more suitable for those who have a lot of money saved and also don't want to have too much trouble when they want to spend something at a certain time. But I don't think everyone needs this and as long as they are conscious enough about using the card, of course there is no need to bother making one.

No, not everyone knows what money they should spend properly, because everyone definitely has their own desires, one of which is buying what they want even though it's not that important. I think it's not a problem if we have limits, because I think by doing things like that, I think it's a way of appreciating yourself. We certainly need pleasure for ourselves in life, we need motivation to make us enthusiastic about surviving by working hard. and by working hard you will have an income, but the problem is that they don't manage their finances well, they only think about their desires but don't think about other things that might be more important.

recently my friend bought a motorbike, where the motorbike he bought was a well-known motorbike for young people, he worked hard to collect money so he could buy the motorbike he dreamed of, but with his impatience, he opened his savings which Maybe that's almost enough for the price of the motorbike he wants, but in reality it's still not enough and because he's impatient he ends up borrowing money, in my opinion that's not wrong because it's based on his own desires, but what we have to pay attention to is We can be responsible for what we have done, including taking out loans. If we do take out a loan then we must be able to pay it back within a short period of time.

there's many misconception about the use of credit card that people seem not to understand, there's reason why many "rich" people try to mantain their cashflow and one of them is by utilizing credit card, when people are using credit card doesn't mean they gonna pay in installments because they are consumptive and they are running out of money, they probably just gonna delay payment until sometime and then paid it in full, its common use for many rich people out there that just want sometime so to not disturbt their cash flow and thats wise enough, i'm pretty damn sure that if someone is just too entangled into debt their credit card limit already reached limit and they can't pay for it, soon they'll lost hold of the credit card, these people also might take advantage of credit card feature just for the sake of growing that credit point for future use.
usually people with credit card know how to deal with debt management in my opinion.

If we can resist desires that we don't need, of course this will be very useful for us and our finances, because too many desires with little income will certainly make us have to borrow money to be able to meet the needs we need. you are right, not everyone has the same thoughts on this matter and there are some people who continue to borrow money so that their desires can be fulfilled and this has no benefit for them and this will certainly make it difficult for them to have savings because they have to continue to pay loan debts that they've taken.

Currently, everyone who cannot fulfill what they want because they don't have money will be able to easily achieve what they want through loans as you mentioned and they will be able to fulfill their desires and indeed this will make them addicted to lending money because it doesn't feel like it because we don't see the money we lend and it's not very good if we keep doing this because it will make it difficult for us to pay it back.

Taking out a loan is not a bad thing, as long as it is noted that the debt can be managed well. And whether you believe it or not, the richer a person is, the greater the debt they have, but strangely the debt they have makes the person even richer. This can happen because they are able to manage the debt they have well, where they use the loan for investment purposes or as an injection of funds for the business they are managing, they really do everything carefully, with careful calculations and analysis. In other words, they take loans so they don't lose the opportunity to get bigger profits. This is different from the majority of people whose financial level is middle to lower, where they usually take out loans just to meet their daily needs or simply to meet their prestige. This is a bad behavior that ultimately results in them being caught and in debt, because apart from being unable to manage their finances and the debt they have well, they also often take out loans for no apparent reason.

Point is clear but it all depends on how an individual will handle the need to borrow money from any banking institution or other people. However, there are just emergencies which will put someone at the edge of needing to do so and in those instances, it would be acceptable to purchase a loan but only an amount you can afford paying to not make your life miserable but of course as much as possible never engage to debt unless it is really necessary. Some people are engaging to loan for their businesses which is a good thing IF you have made a thorough research and can at least give you a decent potential to make it profitable and to allow it to pay your debt on your end. Now, with unwanted scenarios, best way to settle debt is to simply prioritize it and set aside those which could possible be. Even with baby steps, what matters is consistency. If you're in debt then embrace temporary struggle of paying it as quick as you can to at least be able to move on, afterwards and to continue what you are minding outside this scenario.

You are right, someone who is already rich will take out a loan because they want to develop the business they have, and they do this with really mature calculations, so it is not surprising when they dare to take risks by taking out large loans because they have already calculated their profit ratio. and the amount of debt that must be paid. Even if we see that they have total wealth, half of which is in the form of debt.
That doesn't apply to people from a lower middle class economy, as you said, they take out loans to make ends meet, so the loans they make cannot make a profit. This is clearly not healthy, especially if you take out a loan just because of the prestige of buying luxury goods, they are creating problems for themselves in the future.

Unfortunately, not everyone is able to make a budget list for their life, so they will have problems. Making a budget list can be done if people have a steady income even if the income they receive is slightly smaller. At least if someone has a fixed income they can manage their finances for expenses for anything and after that make a much more economical portion to cover all the necessary needs.

Organizing financial management is not easy, especially if we have a big responsibility towards our family. Usually the more expenses we need, the greater the income we need. The ability to manage finances will become increasingly difficult in unstable economic conditions and it is quite unfortunate that there is no solution that they can do.

These three are the same things written in different forms, the actual point is not to overspend so that you don't need to borrow money to cover your expenses.

In my opinion, a person should never borrow money or take loans for personal expenses because you will barely be able to repay that without having any problems if you are a salaried person who gets a fixed amount every month. Let's suppose you borrow some money because you are out of cash and you think of repaying that loan next month with your salary. When you get your salary next month and repay the loan, you will have less money left once again, and after a few days, you will need money again. So this cycle will continue.

A personal loan should only be taken when the person taking the loan knows they will have enough money in the future to repay the loan and not the need to take another loan.

People would really be only realizing on the time that they would really be able to experience problems and this is the only time that they would really be having that kind of approach and adjustments
whenever they are really that into those hard situations on which we know that this is something that very common behavior of people. Debt is something that been part of our lives today
on which its hard to believe that people wouldnt really be having any debts which is of course excluding into those wealthy or rich people then they are really someone who doesnt have a debt i believe.
It would really be better that you should really be having that kind of management because if not then it would be making your life even more miserable.

Learn your debts to be used on the most worthy way and not really just that taking a loan just because on buying up something or whatever they do have which it is
really just that a waste.

Rather than borrowing to pay off my debts, I added a side hustle - photography. I do freelance product photography on the side for auction houses. So they give me bins of costume jewelry, small decor items like vases, sterling silver, etc. I take it home and photograph it all and then they hold an online only auction. I charge roughly $40 an hour to do that for several auctioneers and also antique dealers that sell online. I also have my own etsy shop selling items I find at yard sales and flea markets. I've had almost 400 sales so far. That's on the side of my full time job. And I am clearing off my debts.

Sounds like OP is a fan of Robert Kiyosaki. Having debt is one of Kiyosaki’s most popular advice for business owners and real estate investors, his solution to debt is incurring more debt. I don’t know how that works in the United States but in my country that kind of advice will get you into trouble if you are not careful. I agree with the first comment on the thread, debt should be avoided in the first place.

True, I agree with this that everything can become a habit when you try and feel the benefits, but the real benefit that is meant in terms of taking out a loan is to help overcome problems when someone is in an emergency situation which requires fast funds to solve the problem and not to be used as an alternative when you are not in a situation that is not too needy.

Because what is feared is yes as you said that when someone is getting used and addicted then they will bring themselves to new problems in their life, and I think it is not uncommon for people to end up experiencing pressure problems due to debt and usually they are typical people who live with prestige, or that means someone who prioritizes a lifestyle that is actually not something that should be prioritized, while on the other hand the times will be more modern where the lifestyle will also definitely be higher and obviously this will make them more dependent on loans when they do not have the ability in terms of finance to finance their lifestyle and obviously in the end they will only lead themselves to many problems due to utilizing loans for something that is not really needed.

The best way to manage your debts is not to have them. However, since most people today have debt, it is best to think in terms of ratios. Things like your mortgage not exceeding 30% of your income. On the other hand, if you have consumer debt, think that paying it off early is like investing with an instant return. So, the best way to handle consumer debt is to get rid of it by paying it off as soon as possible.

You're talking about venture debt which is the businessmen need to pay the debt + interest which is nothing different like asking debt from banks. While in venture capital, you don't have to pay them, but they're allowed to sell their shares, and you don't have to refund them if your business bankrupt since both of the parties accept the risk and gain. https://www.cbinsights.com/research/venture-debt-venture-capital-vc-comparison/

Well it's true you can miss out many opportunities when you lack of money, but it's something you need to bear, don't be greedy. I believe every businessmen are try to manage their manage their business and money properly, but there have been many businesses fail which mean it's not only because their money management. https://www.luisazhou.com/blog/businesses-that-fail/

Yeah I know, there are also many businesses who start from debts and successful, it just playing with fire isn't my thing.

I read the publication from Robert Kiyosaki where he was discussing about good debt and bad debt. He highlighted the benefits of accessing loans to invest in businesses that can yield profits. He also indicated that debt could also be a good means of reducing taxes and helping in building investments. His view is that debt is bad if it is wasted on liabilities which doesn't bring any financial returns.

I am not a fan of the so-called good debt because business is unpredictable. No kind of business guarantees profit and I don't want it to be a victim. He advocated for people to invest in real estate but this industry is not loss-proof. Natural disasters, wars, conflict or even migration can cripple the real estate sector of any country. There has been an increase in the sale of cheap houses in some towns in Italy some of them are been sold for as low as €1. The reason for this is that the population of such towns have depreciated because of natural disasters, migration, etc. Anyone who owns many buildings in such an area will go bankrupt.

I prefer to invest in only businesses where I can afford the capital. The business would gradually grow with time instead of taking loans to venture into an unpredictable future.

The point you mentioned is a good one but do you think it's that easy for an ordinary man to understand.The major problem is that people are unaware about the hidden rule and regulations regarding the debt that banks list on the agreement.

People just go with the basics and when something happens off the road then the hidden rules come into play and they react like we don't know about them. You always should look for a person well established in the field of economics and ask him to properly provide a advised plan for you it'll save you from further complications.

Good read. And if I may add, I'd like to top this list with another tip that would severely help people who are drowning in debt.

You gotta have a second job

Doesn't have to necessarily be high-paying or whatever, just enough to sustain your bills or whatever essential expense you are looking forward to every month. And use the money you're earning from your main job as a means to pay up the loans/debts you incurred, while keeping the side-hustle money as your take-home. Sometimes budgeting just isn't enough, personally I've been in debt in the past and cutting on expenses alone didn't do it for me, and while it did teach me a lot about discipline and making wise weighted decisions, it never really helped me financially recover.

That's when I got a second-job that I can do at the comfort of my home. What took me years to just pay the half of, took me 3 months as I was able to use the money I earn from my main job to pay it off in large batches, while I am sustained by my second work. Best part about it, when I got the whole thing paid off, my finances became even more free and I am now able to live a pretty lavish lifestyle if I do say so myself.

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

Debt dependency is dangerous. Borrowing is permissible if the time and reason for borrowing are valid. There are important details that we should pay attention to when borrowing. Borrowing can be beneficial if one of these details is to take advantage of an opportunity that needs to be evaluated in an emergency and will be missed. Otherwise, borrowing to meet unnecessary needs will have a negative impact.

In some countries, due to inflation, borrowing can enable a person to buy a good at a cheaper price. If you want to buy the same product in a month's time and you think the price will increase, it makes more sense to buy it now.

Almost everyone at some points in time will need loans. But the difference is the purpose why the individual needs the loan. While some will need loans to start up business, some could need loan to celebrate finances birthday. No matter how insane this sounds, it happen and I have also witnessed it. Using loan to start up a small scale business is risky because the business could still die during the introduction stage. If there's anyway to save, it will be nice.

This sounds crazy to me. Do people actually do this?

Actually debt or taking borrowing for building business become more profitable way for the future but currently many people forget with debt management for taking loan and calculating with how much percent debt interested have to pay.
I learned with some success businessmen always have quit well debt management before taking loan and put under 20% of their assets as limitation, its mean if their values assets above $1 million just applying loan only $200k and they won't more bigger loan than with their assets having.
All businessmen have loan but never increasing limitation for taking loan bigger than how much assets having, but some people have bad debt management when taking loan more bigger than assets they have when the business fail difficult to recovery with how much assets they have and loan payment not on time have increase loan interest.

I agree with most of your points, but I believe borrowing funds to clear debts can be beneficial in certain situations. For example, if we have debts with multiple banks or institutions at high interest rates, we could borrow from family or another institution with a lower interest rate. This allows us to consolidate our debts into one place for easier management. Of course, having a family member or close relative willing to lend money is a fortunate situation.

Additionally, taking on debt can be beneficial if we use the funds strategically to generate more income.  Borrowing money to invest in a business or other income-producing asset is different from using it for purely consumptive purposes.

And there are riskier take up of loans and they're even crazier than setting up a business that's already risky. I've seen people taking loans just to go to concerts, vacations, celebrating of their birthdays and holidays. I think that's a bad debt and people who have been doing that has to change their way of taking loans and stop doing so. It's not going to give them a better use and they'll be categorized with the people that can't utilize and maximize the usage of loans. Unlike those risk takers and businessmen, they take loans for expansions and buying more stocks and etc for their businesses.

People fall into debts only when they spend more money than their income and they know better that they cannot return that amount easily. Nobody will be in debt when they reduce their expenses because all the things that matters is the over spending.

The better strategy to not fall into debt is that don't spend too much money on that materials which are not compulsory for life but you can also live without buying those materials. Plan for spending and whenever you think that now your planned limit is going to end then put a limit on spending otherwise you will be in debt every month and at last your burden will increase so much that you will be unable to reduce it.

The question is why do people get into debt? Human behavior is sometimes reluctant to live in simplicity and they are even willing to go into debt just to fulfill their lifestyle. This kind of lifestyle is not recommended because we are not trying to live in simplicity. Rich people take on debt to develop the business they run so that debt is much more productive than poor people who take on debt to fulfill their lifestyle, such as buying a motorbike, for example. Management is needed to control money because even if you get a lot of money, if you can't control it, it will also be wasted.

The need for debt must be seen for what it is and if it is only to fulfill a lifestyle, it should be avoided. People's mindset towards debt must be seen according to their needs because if they take out a loan to develop the business or business they are running, for me it is not a problem.

When someone spends more than their income, of course this is because they cannot hold back desires that they can still postpone and they force themselves to fulfill their desires so that the income they have cannot meet their needs and will indeed be more It's good for them to reduce their expenses to things they can still afford so they can use their income well and meet their needs.

Having financial planning will of course be better so that someone can use their income well so that they don't spend their income on things they don't really need so that their income is used up and they have to look for loans to meet their needs in a month so we have to keep repeating the debt habit until we can have a spending plan according to the income we have.

Make wise spendings

You wont really be having those debt problems if you do really just know on how to do that above on which you should really know about on having that wise spendings because
once you do make yourself that lost control on the things that you've been doing specially on financial handling then you would really be ending up on having that financial problems
on which we know that these is where people do usually lose up their control when it comes to their finances.

Never ever make yourself that do borrow money to pay up debts because it would really be just that making your debts even more deeper because of interest.
It is really just that common sense on what are the things that you should really gonna do and not really just that make yourself that doing actions
which are really that totally opposing or something that not practical or ideal on doing so.

In addition, if you must take loans or borrow, be sure that there is already a defined means on ground that will help you pay off your debts as at when due or even before it is due. Many debtors borrow with the hope that before the repayment date is due, they will have the money to payoff their debts. Many others borrow because someone promised to give them money, hence the need to borrow while waiting for the person who promised them money to send. No matter the reason for borrowing, it is very risky to borrow when you do not have any reasonable means in place to payoff the loan you took. This act will only lead you into more trouble as you might resolve to selling off properties or taking more loans to finance your debts. Avoid taking loans if you are not certain about how to repay them.

Yep. That’s it. Don’t spend more than what you earn. It’s something I practice and it works. There are days when I feel I’ve overspent and once the feeling and thoughts comes, I cut off and if I want to spend, I first ask myself if I earn (on a daily basis) the amount I want to spend.

It’s not really difficult to not be in debt. But yet it’s not uncommon to see people in debt.

I do understand taking loans for a business, even if you fail at least you tried and there is a possibility of making money, hell even like taking out a loan to buy as many lottery tickets as you can could be a stupid decision but at least has a chance to make money, small one, but has that chance. What's the point of taking a loan for concerts? Or a new iphone? Or holiday? That will not help you at all, it will not make it any better in the end for you.

I believe that business loans are great, you could take that out and start a business and hopefully you could make that back and your business will do fine, but that's unfortunately not an easy thing to do and should not be something that could benefit you over course of long time.

Avoid spending beyond your budget

You would definitely free yourself from potential debt or loan if you do have this kind of mindset on which you shouldn't really be that able to reach out on a condition
to have tons of loan or debts because you are really just that spending on what you can afford and not go beyond with those means on which usually people do really
commit out. They do mess their lives because they are spending which is more than on what they can afford.

If you do have this kind of behavior then you are really just that basically putting up yourself on such big or huge trouble considering that we are really that
spending that much. Always having that budget and moderation when it comes to spending. Be responsible and be that sensible when it comes to that manner
because if you cant just that put up yourself on such condition then problems later could be felt.

I so agreed with this debt aside from the interest that gonna burden, mental pressure also a thing when we got entangled in debt. know that such mental pressure costs us our health in the long run, for someone with crippling anxiousness, debt might become even more of a problem because they can't stop thinking about the debt that they need to pay if their salary is not sufficient, it will be a massive stress.
personally I also don't like debt with too much string attached, this just another form of cripple that just take away peace that just make life bland.
i don't know how people could be having the bravery to be entangled into debt, getting their salary eaten up and be fine with it, with me personally i can't.
but i've seen plenty that willing to take a loan, get entangled into debt for the most mundane useless thing ever such as dining at a restaurant, thats just silly in my opinion.

Getting into debt has become a norm for everyone now, most particularly for those who are low income earners who have very hard time in making their ends meet. It’s like it’s inevitable, but we should also know that it can be always avoided as well. Discipline is the key. Learn to save first before you goal to buy something you can’t afford. Focus on your needs, and once you have spare money, that’s when you can attend to your wants as well. And as much as possible, spend within your means. Do not go above or beyond, because that will only trigger yourself to start creating a loan.

I agree with you that debt management is important, but I think it's even more important to avoid the use of it in the first place. In my opinion being in debt is not a good idea and should be avoided wherever possible. Especially now in times of high interest rates the monthly payments for our loans can be crippling. There are circumstances where debt can't be avoided like buying a house, medical emergencies or visiting a renown university. Other than that debt shouldn't be option, because it will lead to higher spending and getting used to living above our means. I have seen it among friends that got used to taken out loans for taking vacations, new clothes and buying a better. All of those things aren't really necessary.

Paying debts on time is the most important thing in debt management. Someone can list how much debt they have in 1 month and what date it is due, then they can pay it according to the due date. Because delays in paying debts will be detrimental to the debtor themselves, because they need to pay late fines every day and this will continue until they can pay the debt. It will also have an impact on the bank's credit score.

Yes that's right, indeed for people who have unstable finances it is not strange that they make loans or owe money, as you say it is to meet their needs, which is indeed a need that we must pay attention to because it is one way to survive. Especially now that all food or needs sometimes rise in price, but it cannot be avoided, of course we must be able to balance it.
I am also sure that in one neighborhood there must be families who have debts, whether it is in debt for basic needs or for others.

Indeed, we must be able to save for our future or just in case, and certainly when we were young we were taught to save by our parents or those who took care of us. It's just that everyone does not have the same income, maybe there are people who are bad at finances, such as not working or very minimal or limited income.

The problem is that things like this need further thought about how we deal with debt because sometimes for now we are actually always faced with loans that continue to be made but in the end they are inconvenient to pay especially on time because sometimes we only owe but don't think about how to pay it.
This kind of thing is not a few people who do it because they only think about borrowing and getting instant money but are confused about paying for it.

In my country, online lending is quite common but sometimes it is used as a momentum where those who borrow but do not want to pay the debt they did before. In fact, it is not uncommon for cases in my country when collecting loans, sometimes people who have debts act more anarchist.

Debt must be seen from the perspective of needs because if people borrow but it doesn't work out well, the debt will become a problem in their life.
Debt is categorized in two ways, the first is borrowing to develop a business and the second is for lifestyle needs. From these two aspects, debt will become more planned if people use it for business development because they have a plan to pay it off.

Meanwhile, taking a loan for lifestyle needs is actually the wrong decision and unfortunately people don't understand what the term unproductive debt means. If you take a loan for business progress, it is much better because people have a long-term plan for using the money.

It does sound crazy and unfortunately it does happen and if this actually surprises you, You’d be more surprised at the number of people who do this. People do use their credit cards to pay for lots of payments owed to various services thus accumulating more debts.

Asides that, people literally take out loans from the bank or wherever  to repay another loan that’s due. It would be quite difficult for people like that to totally pay off all his loans cause even if the individual fails in paying off the debt on the due date, the interest on the loan would keep counting. 

That was it, "repaying on time" is what makes them proud of their selves, and a high credit status might give them a sense of achievement. Not only that but I am pretty sure that they can also get some rewards with that. As you said, it is still much better to live free from debts.

It's like we can breathe clearly now or there are no more headaches and stress that we can feel but that is in terms of having a debt only because we still can experience them in other things. We can also get those rewards that we think we can only achieve when we have debts and we can in fact get them much faster and buy a better item than them. As for the house, I won't rush it. We still can live with our parents and friends for a while, or rent a cheap one.

Do consider those people who are in debt because they need to pay their basic expenses, such as monthly bills and others. They need to carefully budget their income vs their monthly expenditures. Try to live within your means. I know it is hard especially if your income is quite small. But you need to find alternatives on how to augment your income or lessen your expenses.

Debt management is good to live by, but as much as possible, live debt-free and you will find out that you will have better and more carefree life. No stress from these loan sharks. For sure, you would prefer to live decently within your budget rather than with a headache from your debts.

From the two aspects of debt that you say, it is quite clear that what is better is debt for the needs of developing a business. Because with the results of their business, it will be easier for those in debt to pay it off within a certain period of time so there will be no difficulties except in pursuing the sales target of their business. So it would be more suitable for everyone to do if the purpose of the debt is for business development and not to be wasted on a lifestyle that never ends.

I cannot judge how people who are in debt think to fulfill their lifestyle because it will definitely be difficult for them one day if that person does not have the income they can expect to pay off their debt. But if you still see people like that around you at this time, I think you need to advise them even though it may not be an obligation for you. However, such people need to be given understanding so that their mindset can change and not be indebted carelessly to certain parties using any means.

There is no big deal here. And all I will say is that before you plan to collect a loan, you have a plan that when you collect the loan you will pay back within the agreed period of time. And don't take a loan when you don't have any plans in the future to pay back. Because when the agreed time comes and you don't have anything to pay back then the lender will collect your landed or any other properties to settle the loan. Even the two examples op give gave, don't take a loan because of business at the beginning. That is don't start you business with debt because it will affect you in the future if the business is not doing well. But you can take a loan to top up your business and expand it then pay back when the agreed time has come.

There's no wrong on taking up a loan it would really be just that the main issue on here is if you are really that a responsible loan taker because we know that the main issues on here is that not that paying on time
on which it would really be causing up that so much trouble into someones life specially if the interest is really that keeping on piling up. If you are someone whose really that responsible when it comes on
taking up some loans then it would be just fine. Also, you should really be having that consideration on trying out to make use of those loans into something which is worthy or something that could generate income like making up some loans for business expansion or typically that trying out to start a new one. Never ever take a loan just because you do want to buy up some luxurious things or wants
that you do have in mind.

Being a responsible debtor will somehow make a good impression on part of the creditor. If you think you can’t pay on time, then it would be better not to take a debt as much as you can. However, everyone has probably debt most especially because people find it hard to adjust and afford those high priced foods and necessities. As a result, people resort into taking loans, but should be responsible enough to clear off their debts on or before due date comes.

I don't really have a problem with taken loans , where the problem lies is not being able to pay back the loan in time, as it's going to starting yielding interest which in most cases might even be more Dan the money you borrowed, another I frown at is borrowing Money for consumption, that is like hustling backwards, because the money you borrowed you obviously don't have a plan or resources to pay back, but borrowing to invest Is not bad, in fact most successful businesses actually borrowed money to start,  and made sure the money borrowed was managed according, if you have a business idea and maybe you don't have the resources to finance it I will advise you take a loan to finance but also have a pay back plan in order not to be caught in the middle of nowhere.

it always comes down to money management debt is definitely a double edged sword, if taken advantage properly being the lawful debtor will definitely increase credibility and credit score, if worse come to worst in the future where we might need some money and take up on a loan, then things will get significantly easier if compared with people that never have a debt therefore have their low credit score.
definitely advantageous for entreprenur as well that often deals with situation where they need to expand but don't have capital so taking up on a loan is one of the alternative.
but for those that only use it for consumptive purpose, well be prepared to get miserable life if we don't control our money spending habit or in other word, spending recklessly we'll have bad credit score due to unpaid debt and therefore the system will considers us untrustworthy so that the next loan gonna be hard not to mention we gonna pay more interest if our debt get prolonged.

The truth is that one should as much as possible avoid taking loans unless the loan is taken to fund a business which one is sure can generate profit that can repay the loan or one is sure, he has a stream of income that can support the repayment comfortably. Nothing destroy relationship more than money, so one should be very careful with loans because it is usually sweet during the time of borrowing and a burden during repayment. Besides, delay in repayment is a huge breach of trust that does not always end well. So the best management of loan is to avoid it as much as possible except for the reasons I have given above.

Many people do this and I wonder how they are able to sleep at night knowing that they are owing someone with no plans on how to pay back. I don't know if others experience it, but the moment I'm owing someone, I usually feel uncomfortable around the person. It is only when the money have been refunded that I can feel relaxed.

Double edge sword if you are someone whose really not that good when it comes on repaying loans but if you are someone whose really that responsible when it comes to debts then for sure you would really be able to make yourself that having no risks on putting up yourself on trouble because people would usually be putting up themselves on trouble on the time that they would really be neglecting out on repaying those loans in time.
Also there are people who cant really be able to think up well when it comes to good decisions on which they are really that taking up those decisions on buying up something or simply wasting those loan amount into something which it isnt worth or doesnt really bring out some income or revenue. Its not bad to consider on taking up some loan on buying something but being responsible about paying it back would really be hard
specially if its an amount that you cant easily pay up.

This is why always be considerate on taking up such step whether it would really be worth or wouldnt really be something advisable because you cant really be able to
pay up or not sure with it then better not to continue.

That's called productive debt and when people take on debt to develop the business they are running then the opportunity to make a profit and cover debt costs will be much more controllable.
Although not everyone is successful in developing a business and there are also times when the business does not develop and they have to find a way to pay off the debt. But the minimum debt they take is much more appropriate than just to fulfill their lifestyle.

Life requires management, especially if you decide to take on debt and many people are trapped in debt because of a bad lifestyle because they are too chasing a lifestyle.
It is difficult to advise people not to take on debt because today's life has shifted away from a simpler lifestyle, many people are trapped in debt because of the wrong lifestyle and in the end they have to work hard to pay off the debt for years.

Human nature is fear and greed. Fear in the sense of not getting a job, reduced salary, etc. And greedy in the sense that when we get a salary, get a job, our emotions will play around, we will think about money to buy things A, B, C. Finally a pattern of "rat racing (hamster toy where the hamster just runs in place)" is formed, namely waking up. , work, get a salary, pay off debts until old age.

Therefore, it is important for rich people not to work for money, but for money to work for them. And people's wrong thinking in general is that they think a house is an investment for an asset, so many people go into debt to own a house or make house installments, even though the house is the biggest liability, and many people leave. go into debt just to follow fashion or other things that they don't really need. This is one person who cannot manage debt well because debt is unproductive.

I totally agree with everyone that said it's better not to even go into debts than find a solution around it. It's only good to know all this that op has stated if only one is already in debt.

So if one is wanting to take a loan and/or borrow from any source then it should be a very much productive purpose, either to make an investment that can yield back the profit earlier before the expected month not even date. But mind you this exception is basic for only few investments not every investment is good to take loans, there are some investments like bitcoin investment it's absolutely not idea to borrow or take loans in order to invest or purchase bitcoin because of it volatility, profit is not guaranteed.
So the issue of loan or borrowing should even be eliminated in the minds of investors even in times of desperations.

I believe in one thing, if you don't pay your debts when you have money, then you will forever be in debt. There are many cases of this happening in real life, so these cases should be a lesson for others to quickly pay debts when they are due or when you have money. If it were me, I would prefer not to meet secondary needs first and would pay off debt, if I have it.

In my opinion, there is no need to go into debt when we have other options. For example, if you have gold or other valuable assets, it's a good idea to avoid debt and use safer options, such as selling your assets.

In any case, management is the only important aspect, because only with this we are able to balance everything properly, especially if we talk about life problems where there are income and expenses and clearly management is the only thing that can make it all run in balance, meaning that we must really be able to manage income money properly, such as not allocating it to other things that are not really important to us and if you have unused money left over then clearly saving is an effective decision to prevent unexpected situations in the future such as when you need emergency funds.

But yes there are some people who do not think long in terms of utilizing money where one of them is like what you said here where they prioritize a glamorous lifestyle, luxuriate, buy something that is not very useful until in the end they themselves are in trouble which ultimately makes them have to take out a loan, and if this bad habit is not immediately topped with an action then obviously over time the situation will get worse where most likely the amount of debt they will accumulate which will make them experience many problems that make them depressed.

if we have a debt then we should have to pay it, sometimes even if it wasn't us or our parents who did it, we have to pay it, because even if someone related to the debt disappears or dies or runs away, then we as members His family certainly has a responsibility to pay it off. If indeed we have debt and at some point we have money then think first about paying the debt, because we all know that money is sensitive, when the debt is not paid then there could be conflict.
That's right, if we are at the point of not having money, don't force yourself to take out a loan, if we have assets or property that have a price when sold then it's better to sell them, instead of going into debt it can cause conflict later, because when you have debt and if you have money, you just have to think about not paying it, sometimes we will only prioritize our desires.

That works if you make enough to survive that way, sometimes people live a very mediocre life and still can't afford it because they do not make enough money, or something bad like medical situation happens to them and they can't pay it. Saying "just spend less than what you earn" is so easy to say, and could be doable too if you have no problems, but what if I get sick and my medicine is 5 times my salary?

What am I suppose to do then? Not like I can take a loan for 5 months and pay all my salary, then what am I suppose to live with, so I make a 36 month loan, and then I pay that for three years. Assume that went well, what if I get sick again? What if I need that money again? Get another loan for 36 months while I am already paying one? Well that is exactly what happened to me. So do not assume everyone's life is the same.

Yes as simple as that, everything will look easy and go well if we have enough income or even more than enough and on the contrary it is clear that the situation will be full of pressure and tension if you belong to a part of society that has a low or far from average income, which as you said that there will always be things that are never expected before such as you experience illness and need emergency and urgent costs for treatment where there is no other way but to borrow money which clearly this incident adds to the burden on our minds in the midst of a situation of income that is far from enough even just to fulfill the necessities of life such as eating.

Actually, rich or poor, everyone will or has borrowed money for reasonable or unreasonable reasons. I understand your situation here, but are you going to continue to maintain a life full of stress and tension like that? It shouldn't be, meaning there must be an action you take to fix everything like for example you are looking for a new land or place or means that can potentially make money to increase your income, such as trading or adding a part-time job, I understand that everyone has a different life situation but this is not the end of everything and not your destiny in life, everything has the possibility to lead to change if basically you have a strong intention and determination to try and fight.

Being in debt is not always bad, it all comes back to each individual in managing the debt. But before you take out a loan, there are at least several things you should pay attention to and consider further. The first is why you are taking out the loan and the second is where and to whom you will take out the loan. For example, if you go into debt or take out credit just to fulfill your personal desires and prestige, it would be better if you discouraged taking out a loan or credit, because this will only cause quite complicated financial problems and could possibly allow you to get into debt. And if the reason you are taking out a loan is to meet a small need, it is better if you borrow from a friend, relative or someone close to you, you need to pay attention to this to avoid unnecessary and high interest. Unless you are taking out a loan to develop your business, as long as you have assets that can be used as collateral, then taking out a large loan is not a problem, but rather a solution to expand the business you are managing. But you need to remember that this is done with careful analysis and careful consideration.

That's right, we have to be able to see what things require us to take out a loan, because if it's something that's not very important then it's better not to do it. like wanting to fulfill a luxurious lifestyle because you are thirsty for praise from other people, borrowing money for things like that doesn't make sense in my opinion, because a luxurious style can't make us rich, are you happy? maybe yes, but I'm sure that pleasure is only temporary, in fact if that's the case what will happen is that our tastes will continue to increase while our finances are inadequate, clearly that could be a problem that will make things difficult for ourselves.

I agree with what you say, except to develop the business or business you have, it's not bad if you take out a loan. because in my environment there is a person who has unstable finances but he has the desire to open a medicine shop or what is called a pharmacy, he takes out a loan to rent a kiosk that is not too big and buy some medicines that are needed by the local community, Until now he has more than one pharmacy. Therefore, I think going into debt or borrowing money is not bad as long as the goal is clear, and we also have to be able to manage our finances well.

You are right, if we take a loan to develop a business, maybe that is better, even though in fact we will still have a debt burden to pay. However, if we use it for something productive and can bring profit then it is legal. Because of course, if we need money to develop a business, it will require quite a lot of money and it will be difficult if we borrow from friends or relatives, so a loan provider is the choice.
However, if it is for daily needs then I do not recommend it at all, because the money we borrow will be dead money, or in other words the money will not turn around to make money again. What we have is more burdened because we have to pay debts every month.
This is a choice that is actually quite easy, but for some people they force themselves to do it.

It still makes sense to take out a loan to develop a business or start a business, but if you take out a loan for something that doesn't have the potential for profit, perhaps it doesn't make sense unless it's to deal with problems such as accidents or illness, it's still reasonable. However, when we take out a loan and have debt, we have to be able to pay it off because the loan itself was made by us, whether to start or develop a business or to deal with problems that occur. because there are people who force themselves to take out loans just to fulfill their desires, perhaps this happens more often to young people who have just graduated from school.

I agree with you, if you really need to have problems with hope, it's better to just look for work. As long as we are healthy and can still carry out our activities, what's wrong with struggling to find work, because nowadays there are many ways to make money, even by taking advantage of developing technology, this can also be done as long as we have a strong will and determination.

As much as there are disadvantages in taking a loan, I believe there are also quite advantages then. But then again, even if you take a loan for some valid reasons, you should not tolerate yourself taking a loan consistently because that will eventually make you drown into debt. Believe me, it’s like addiction that’s hard to stop anymore. If you can prioritize saving first because you want a certain goal to be achieve, then you have to be serious with it and do not entertain thinking that you could carry out a loan if you fail to save. Know your expenses well. Learn to filter those unnecessary ones and focus on what’s actually needed the most. I believe if your mindset is like that, then you won’t end up taking a loan.

You can’t be trusted as a debtor if you have plans to avoid paying back on your loan. Aside that it will ruin your own reputation, it will also break the trust that the creditor has established for you. So avoid doing it as much as possible. Also, if you have the available money even before the due date comes, it’s much better if you pay your loan earlier to avoid future complications. That is if you want to clear off your debt totally. Otherwise, you might end up spending your money on some other things while losing the interest to pay back your loan, which I think is a very bad option. And one is not supposed to do that if you are a responsible debtor.

It surely is but only if one can afford to do so. A lot of people take loans for personal expenses when they either don't have a job or they work for a salary that isn't enough to sustain them and their family for a whole month, but whatever the situation is, one isn't supposed to take loans for personal reasons because you can't repay it on time if you don't have a stable job that earns you more money than you need which enables you to have some money in hand each month which you can use to repay the loan.

From these, I think a person should never take loans for personal use unless they are sure that they can repay it on time. For businesses, it is not that big of a problem if you have a business that is already up and running and you just want to expand it, but if you are only planning to start a business, you need to make sure that the business model is guaranteed to generate enough money for you to be able to repay the loan on time.

And if at that time he didn't dare to take the risk, by taking out a loan, maybe he would lose the opportunity and what he had previously planned to do to open a drugstore would be preceded by someone else. So debt is not always bad, as long as its use is clear and can be managed well.


Using loans for daily needs is not recommended and should be avoided. because the money borrowed will not produce income or profits. So what you say is true, this behavior will only increase the financial burden in the long term, because there are installments that must be paid every month.


If, for example, the business we are planning has been well conceptualized, is considered to have good prospects and is predicted to generate profits, it would be better if we had the courage to take out a loan, because if not, we will miss out on this opportunity. Building a business with your own capital from the money we collect is indeed much better than taking out a loan. However, it takes quite a long time. And believe it or not, they are rich people who have businesses everywhere, the debt they have is much bigger than what we thought.

The disadvantage in terms of loans is when we have to pay a larger amount of money than we borrowed previously or that means we have to pay along with the interest, and the advantages are more towards convenience, or in the sense that the existence of loan services makes it very easy for us to complete a problem that occurs suddenly without any prior expectation which is a very urgent situation and difficult to tolerate. I understand what you mean, where there are some people who take advantage of loans according to the way loans work, namely to make it easier for us to overcome problems at an urgent time and there are also some people who take out loans for reasons that don't make sense, such as to buy something that they don't need. Basically, it is not very important and not very useful, which is usually the habit of people who live with prestige.

It is clear that the problem of bad impacts is that indirectly having a habit of borrowing, especially for unreasonable reasons, will only lead them to a situation of being in debt and experiencing a lot of pressure. Sometimes there are people who have difficulty or cannot differentiate between what is meant by need. and what is meant by desire, many are trapped in the wrong mindset where they take loans that are actually just for something that doesn't make sense and that is desire. Therefore, it is always recommended to have management and a rational way of thinking to be able to keep everything in balance, realizing that we have a financial situation that is not very good will at least prevent us from making unreasonable decisions.

Sometimes people are too rigid in interpreting debt so that they are unable to make a decision when they want to take out a loan.
Loans based on building a business are not a problem, as long as they understand the impact of the business they want to develop.
Life has alternatives if you want to develop your financial potential, but the decisions taken must be based on careful consideration. Life is indeed better in simplicity, but taking a loan to change life will be much better, as long as they understand the levels and patterns that must be carried out.

This advice is true because debt will create new problems, especially if the debt is taken only for unproductive living needs.
But if you want to achieve a better life then taking the risk of building a business with borrowed money is not a problem, as long as you have alternatives to resolve your income, expenses and monthly costs for the debt.

The main consequences on trying out to ran away with your obligation;

•Bad credit score
•Banned from bank/financing/coop's etc.
•Worst- Getting imprisoned

If you dont like the hassle on always been that reminded or being harassed or something such as every now and then type of calls because of your debt. Then you shouldn't really be taking one
from the start. Debts are having that huge interest but getting on banks is much lesser compared to people or to those financing but still not that recommended
not unless if it would really be used on having a business or some sort on which you could really say that it would really be worth.

"Make wise spendings"

You wont really be putting up yourself on having lots of debts or loans if you do know on how to spend up well your income that came from on your day job. Try your best
not to be over-dropped or out of budget just because you have bought something or whatever expenses that you do able to commit on.
Debt is something that be useful on the time that you have already put up into viable ventures or businesses that you are really that planning into.

People do usually messes up their lives because of the decisions that they are making. This is why if you have seen that you are struggling when it comes to budgeting then
it would really be just that wise that you should really be having plans or on having that systematic way on how you would really be handling your finances.

All I can say about debt management is - don't get into debt. Of course - debt is an option that some people may have to take to maintain balance in their lives, but if they are able to avoid it then avoiding it is a wise choice.

I really realize how uncomfortable we are if we have debt. Someone will continue to think about how to pay debts, work to pay debts and this is really an unpleasant thing. It's always good when we have other options before taking on debt - one of which includes limiting our lifestyle and saving on expenses that are not really needed.

As much as possible, it's true that don't get into debt. Don't get pressed by this society that we're having right now that want you to purchase expensive things that makes you higher than them. That's not life but it's best not to get into it. Pay everything in cash or if you're using a credit card, pay before the due date so that you won't have any interest and any other life hacks that you know about saving, do it. As for your debts, if you have existing ones, don't forget to pay them until you have zero.

It's not actually bad to be in debt as long as you're capable to pay, and you use those funds either to expand your previous investment or whatsoever that generates sure profits. But in cases like you take a loan for personal satisfaction, I don't think taking a loan is actually helpful. It may even push you into a miserable life once you're unable to pay and so its monthly interest keeps going high. So as much as possible, learn to avoid taking debts if you have no reliable funds to pay for it.

Well, if such happened, it’d be tragic for the person. But I wasn’t talking about medical situations. If that happens, we have no choice. But while it isn’t happening, we shouldn’t spend more than what we earn, and if we must, we should try to reduce the margin. It isn’t an easy thing when you don’t have enough, but when you know this rule, it becomes easier. If you have $4 budget and you want to purchase something, if you can’t get it for your budget, don’t purchase it, or wait till you completely have the money.

If you have the means to avoid them, it's best not to take any. But if you're in a situation that you're in dire need of having extra money but you don't have then all you have to do is to take it and use that for those important matters and expenditures that you have to do. For expansion matters, this is done by most businessmen and they're using debt money to increase their cash flow while they're going to get their payments from their future profits. They can do this easily because they've established their business and good or bad seasons, they've got cashflow to pay for it. And for an individual that don't have good cashflow, it's not advisable to do this.

Paying your loan back is something we need to realize as important figure in our life, because if we can do that then we would be able to consider the situation to be a little different. I personally believe that we are not going to end up with such a greater return, and need to realize that life isn't all that simple, sometimes we can't pay the debt back. You need to figure out the balance, sometimes life is simple and you can pay it back easily, sometimes it is not and you end up with even more debt.

As long as you are trying your hardest, do not feel sad if you fail, because there are so many people in the world who are failing at paying their debt back and if you fail too, you won't be the only one, there are hundreds of millions of us.

The point is that we must have good responsibility in ourselves, and obviously if you borrow money from anyone or to a loan service then somehow you must be willing to pay, because usually before you borrow money usually the service will first check the situation or financial situation in your life one of which they will ask about how much your income is in a month, none other than that to ensure that there is some money left to pay debt installments, and also usually there will be an agreement at the beginning, they will do whatever it takes to ensure that you can really pay the debt until it is paid off.

So don't underestimate loans, they help you when you are in an urgent situation which means you also have to take full responsibility for your debt, so think carefully before you finally decide to take a loan, don't take advantage of this convenience because however if a problem occurs there will be consequences that you have to bear such as some of your assets will be confiscated by the bank or service. This is not a matter of sadness for failing to pay debts because after all, debt must be paid, there is no tolerance at all, so consider carefully before you make a decision, don't let your decision cause a lot of problems in the end.

Yes, we as humans if we have debt then it is obligatory to pay it back because if we do not pay back we must be viewed badly in terms of debt and credit, therefore we as humans must be able to pay what we borrow. When we borrow from a service, it is clear that we must be asked how much we earn a month and the assets or assets we have, because it is all done to consider how much the service should lend us money to make it easier for us to pay, because if the service lends too much and our income is small it can make it difficult for us to pay the debt because the service is too big to lend to us, and every time we borrow from a service, there will be a guarantee from some of our assets so that when we cannot pay the debt, the guarantee will be confiscated.

Therefore, a debt is something that must be paid, if we cannot pay the debt we will be labeled bad by the person who borrowed from us. So never underestimate a debt because debt can cause division / problems between relatives, relatives, friends and people around us if we borrow from them. The experience I took from my friend he owed his brother and then he couldn't pay it back, so an argument arose that took a toll on him.

Yes, that's true, debt is not always bad, sometimes we need a loan to be able to develop what we have, which is called a business. Even though loans can destroy us, it depends on what we use them for, such as using borrowed money just to fulfill a desire to be stylish or to satisfy a desire that does not produce a profit, of course that is not right. The right thing is to take out a loan to develop a business, but there are downsides when someone who has unstable finances experiences a disaster and there is no other way, they can only take out a loan to overcome the problem. But even so, sometimes getting a loan is difficult.

if we take out a loan to meet our daily needs, it is not recommended, but to survive, maybe we have to do it, but with things like that, we have to be aware of being able to pay off the debt we have incurred, by looking for a job that provides income. Obviously, don't take out a loan but we can't pay it, that's not the right solution but only adds to the problem.

There is a good debt and a bad debt, it would really be just that depending on how you do make use of those loans or debts because if its really that been used on other means like buying up some luxuries or making use for vacation or something which is something that giving out those profits or revenue then this is something could be considered to be bad. Unlike, when you do took up some loans for the sake of investment extension then this is something more valuable or something that it is more worth. So it would really be just that depending on how you do make use of those debts. Its not really that bad to take up some debt or loan if you are really just that responsible on the things that you've been doing or you are really that paying it up. You do know the risks about paying up some interest.

The best thing that you should really be avoiding is not to take multiple loans on which it would really be just that normal that there might be some emergency situations
on which its something that cant be avoided but as much as possible you should really be avoiding it at all cost specially if its not necessary.

Before deciding to go into debt, of course we must first think about how we can pay off the debt we have so that we can pay it, because if after we go into debt and are unable to pay it, of course this will put us in trouble and it will be better when we decide to be in debt, we can use the funds that we borrow to develop the business that we have run and we can pay off the debt in installments from the results of the business that has been running, if we choose to go into debt for our personal desires and do not have a turnover of money from what we take of course We just have to set aside the income we have to be able to pay it, yes it would be better if we didn't get into debt if the money we borrow doesn't have a turnover and we will have difficulty paying it off.

Actually, we have to first look at the prospects for the debt we are going to do, I think this only applies to business people, they are in debt with the aim of making a profit so that their business runs smoothly and therefore they need more capital so they can use the debt to make a profit. profit.
That's good, but in contrast to debt that is taken to meet personal needs, there are no benefits or good things there, on the contrary, debt will make us even more troubled.

True, one of the things that must be done first is to consider as carefully as possible, if for example you need money for a purpose that is not really important that leads to your desires such as buying goods without any profitable potential then obviously it is better to cancel your intention to borrow because obviously it will only be a waste without any reciprocity. On the other hand, I cannot say that loans are only for rich people because after all, the benefits of loans are for all people who are really experiencing problems with their finances, such as needing money for hospital fees, which this situation applies to all people, poor or rich.

The point is for those who really need money for something that is very important, but yes on the other hand as you said it is true that usually rich people also borrow money, but usually they borrow money only for something like what you said which is like for example for a business which does have the potential and opportunity to give them profit, meaning never misuse loans for things that are not too important if for example you don't want to experience financial problems in life such as being in debt.

Always set those priorities first rather than on thinking up yourself on trying to buy up something which it isnt important. Just like on what most people been saying on here is that its never been that recommended for you to be a certain type of person who do want or likes to spend up into something which it isnt really just that important. Although there are really moments or times that we do want to buy something which it is really just that fine but doing it twice,thrice or more then this is something a problem that you should really be needing to suppress or something that you would be needing to lessen out.

You wont really be ending up on debt if you are really just that responsible on what you are spending. Dont live in a life on where you would really be that luxurious if your income isnt aligned to it.
Dont take up loans if it isnt needed, if you do then better to make it worth or something that you could really be able to take benefit from it. If you cant then it would really be something
and issue that you would really be needing to face on.

It is indeed not recommended to take out a loan just to fulfill what we want, such as fulfilling our desire to be stylish or something else, because if we really want to fulfill what we want, such as buying an asset or property that we want which has a high price, even though its role is not that important because it is the goal is just to be stylish, it's better to use money that is money we collect, like money collected by saving. I myself am like that, I have a job and income but when I want to buy property or other luxury items then I save for the object that I want, and I also feel very proud to be able to buy what I want with my own money, not borrowed money. .

If it's for an investment or business that has something to do with profit, the profit can be obtained depending on how we run it, maybe it's not a problem, because sometimes we need additional funds to be able to continue the investment or business that we run, but before that of course We have to think first about whether by borrowing money we can pay it later or not, if it will only make things difficult, it's better not to.

Always go for something that can generate income and its always that better that you shouldn't really be focusing about those buying luxury items because those things could depreciate every year or a particular point of time which is unlike or totally opposite when you do buy up a property which is really that having that appreciation when it comes to its value. I have bought some property wayback 10 years ago and now i have seen
that its price rose up to 300% which its been placed on a strategical location which i could say it was indeed a good buy. Wayback i wasnt sure if it would really be developed but there are some hunches  that give out some those kind of thinking that it might be that valuable soon and it did. I make or request some loan which its on salary deduction for too long and i have been able to invest it out on buying that property and now
im reaping the profits because aside from the property value itself, i have made it to be rented or simply making money everymonth without needing to sell the property.

This what many people don't still understand and take for granted. Taking loan without no consideration,  no planning can even make one to even become poor the more. When taking loan the first thing one needs to consider is if it is a loan that can be easily payed back without any struggle. The reason for taking a loan should be for something that can bring profit and not for liabilities.  Some people take loans just to enjoy their life and nothing to think of bringing profits.  

It is important for people to go for loan thst they can afford to pay back because taking so much amount of money as loan without any consideration on how to pay back is just putting more debt and financial burden on one's self.

A life that is not in debt is much more comfortable and calm for us in living our lives, yes, most people are jealous of the results they get from other people, by buying a certain brand it seems as if they can look more established than before, I think if this is forced on them will be trapped financially by themselves. Before buying an item, we have to look at the function of the item. If there is something cheaper and better, why do we have to pay more? We must eliminate this kind of culture. Credit cards are actually good for someone who has sufficient monthly income and if someone still has a low income I think this will kill their finances. It would be better if we wanted to buy something with enough money to save it first and then buy it with cash. So adjust your lifestyle, don't follow other people's lifestyle trends.

If we want to go into debt to build a business and already have a thorough plan as a whole, I think this is much better for that person's goals, having thought about every detail. And many rich people live off of debt. If we haven't been able to follow in their footsteps, it would be good not to emulate debt.

This is the most correct mindset in my opinion, but did you know that many people think the opposite and they say that having debt will make them more enthusiastic about working because they know there are lots of bills and debts that have to be paid, even though this will increase the stress in our lives, but it could be because everyone thinks differently, but I agree that if you want to live more calmly and comfortably then avoid debt except for things that are very important or urgent and difficult to avoid and require funds quickly.

This is a productive debt that will allow us to earn additional income and with this income, we will be able to pay off the debt and in my opinion this is not dangerous the dangerous thing is when taking debt for a lifestyle.

People do only realize when its already too late or something that have been happening into their lives on which this is the only time that they would really be making out those kind of realizations on the time that you would really be considering out that it was really that very wrong or something a mistake. Debts are neither good or bad, it would be depending on the application that you had set out. If you are someone whose really that wanting to have some loan just because you are really that liking on buying something but you are obliging yourself on having that kind of payment then there would really be no issues.
On the time that you would really be making yourself that becoming irresponsible on the time that you cant be able to pay up your loans then this is where problem would be starting.

Debt management is really that something that you would really be needing to have. If you cant be able to make yourself that handle up well on this manner then you are really that
prone into such disaster.

And also sometimes this ugliness can make your good name tarnished in several other loan services, or that means when you have a bad reputation in the previous service such as for example you do not pay your debt and then you run away then usually when one day you want to borrow again for some reason then usually your loan process will be complicated by the service because they have your bad data because usually the track record of each borrower will be spread to several other services, which means that when you are irresponsible when it comes to repaying your debts, you are making it difficult for yourself when you are in an urgent situation where you need money but some services do not approve your loan request because of your bad track record.

On the other hand, it is true that usually the lender will only dare to lend money according to our level of income, as you said that if for example our income is low or even below average then usually the service will only give you a low loan amount and that means the lender prioritizes balance in terms of serving its customers by only giving an amount according to your income level as a precautionary measure. I understand that even if you have difficulty borrowing money from a service due to policy reasons then yes usually people will choose to make people around them as loan targets such as borrowing from friends or relatives, but still the point is that a responsible attitude should not be ignored to maintain your good name.

Everything always goes back to how your mindset is, if for example you are rational in terms of responding to every thing then I think it is less likely for you to make decisions that should not be prioritized, especially in terms of spending money, but it is a fact that sometimes there are always some people whose lives are consumed by prestige, or that means they live by having a habit of luxury and obviously when your financial situation is far from stable or established then this habit will only lead you to many problems, one of which as I said is getting into debt.

This means that being rational will be able to help you in terms of distinguishing between wants and needs, because most people still prioritize their desires even though they are basically unable and on the other hand something they buy is also not very important. Basically, having a luxury habit is not a bad thing if you have a good financial level or if you are a rich person, so being rational and having self-awareness of the situation is a mindset that is recommended as a prevention.

We live in a time where your flashy car and designer clothes matter more than your actual net worth. This constant game of keeping up with the Joneses? It's a recipe for financial ruin, dressed up as fitting in. Why do we care so much about brand names acting like they give you some kind of status? It makes no sense

Choosing practicality over hype isn't about being cheap, it's about being smart. You better believe there's a cheaper, better way to do almost anything if you stop caring about the logo. And credit cards? They ain't some financial tool, they're a straight-up trap. Yeah, if you're rolling in dough, go nuts. But for most of us, it's a recipe for disaster

Save first, spend second. Live within your means, don't try to fake it till you make it. And yeah, debt can be a strategic tool for some – the folks with ironclad plans. But trying to copy the rich by spending money you don't have? That's a losing game. It ain't about never taking risks, it's about not being an idiot. So, let's drop the act, own our finances, and build real wealth instead of this fake, debt-ridden image

With us thinking about luxuries while not looking at finances, it is indeed a formula for financial ruin. The impulse of the mind will lead us to fulfill what we want even though it is contrary to our abilities. But there are people who dress only want to use clothes that have famous brands, especially when traveling outside the home. But with his financial situation and economic situation is not very adequate, obviously he forces himself but if it is by working hard it does not matter, but if to fulfill it by borrowing money it is not recommended.
In my neighborhood there are people who borrow friends' things such as gadgets, vehicles and even clothes when going out just because they want to look rich, I don't even like this behavior. And indeed he himself often borrows money from his friends just to fulfill the style he wants, his main goal is to be praised by many women. And what's unfortunate is that the women who are lured by him because he himself has been deceived.

I think it would be in our best interests to avoid anything that may lead to debt. Getting into some debt did not go well. Many people out there are borrowing money, but I don't think they have a choice, it's not their fault, they don't have any other options to survive than to borrow money. When someone is in debt, I believe they don't have peace of mind since they will always be worried about how they will get the money to repay the loan. Though some people don't care about how they live, they don't mind being in debt every day, all they want is money and to spend it on things they don't need, Only to impress others. Money management is very important in everything we do to avoid spending on unnecessary items.

Another point of it, we need to stop comparing ourselves to others, some people end up in debt because they want to copy their friends' lifestyles and buy the same products that those who are wealthier than them do. That's wasting of money because we earn more than each other, if we try to buy stuff we cannot afford, we will go broke, and we will end up in debt. It is not a good idea to get used to borrowing money because we will lose value to others.

well, in my opinion, don't borrow money just to buy the things we want, if we really want the things we want then what we have to do is work hard, not by taking out a loan, although maybe we can pay it another day, but in my opinion it's better It's better to just hold back for a while until we have the money to be able to buy it, because if we buy it with cash and actually use our own money, the feeling will be very different, I experienced this myself, where I want to own a motorbike, and with me having a job that earns me enough money to be able to buy it even if it's not enough, and the way I have to save is by collecting the money I earn, there was a thought that I wanted to borrow money and buy what I wanted then I paid the loan monthly, which I I'm afraid of a disaster like losing my job after having debt, therefore I prefer to collect money first and then buy what I want.

In my opinion, by borrowing money, it will probably burden our minds, where we will continue to pay until it is paid off, even though we don't know our fate in the future. However, there are some people in my environment, especially those who work in factories with quite large salaries, who dare to buy a motorbike by borrowing money and paying it every month, but I don't think about that because I think it has its own risks as I was afraid of.

Yes, it's true, it's better to buy something with cash rather than credit, or borrow money from other people, it's better if we collect money little by little then we buy the item with the money we save, not from debt, most people now prefer to borrow. For their prestige, they use branded items from debts. What are they doing? It's better to be free from debt as it is, than to be free from debt, rather than having a lot of debt, debt makes us lose our minds, because from a little debt over time the debt continues to increase because once we have debt, we can easily borrow tomorrow. going into debt again, for me going into debt is like we are looking for a disease, if we can we will pay it off, if not, what we do is by going into debt again to pay off the debt, over time what happens is digging a hole and closing the hole, going into debt here and there to pay off the old debt, That's why I think debt is a disease. If we can avoid debt, it's better to avoid it before we fall into debt that keeps piling up, live as we are without debt.

usually having mentality of differentiating buying something that actually unnecessary is good for the long term there are many people that didn't even realize they don't really need the stuff they want until they bought it then they realized that actually they should be sufficient with using not expensive stuff but went on buying expensive stuff just because they can and suffer financially from that.
i've seen the discipline of money management actually helps a lot, even for an employee with determined salary could save up for saving and then make side hustle out of their investment.
I think this is why having financial education is crucial so that we know how to manage our money wisely.
because there are too many people out there being too consumptive ended up broke later on in their life and need a support just to live, definitely i won't be striving to be such person instead i want to become a self sufficient person with wise financial management so that i won't burden anyone in the future.

This is very relatable. Borrowing money for something we need when it is not for emergency is not necessary. For instance, you do not have a tv or an air conditioner, but you need it. We do not have to borrow money because these are just live needs to fulfill desires and pleasure. It's something that when we save gradually, we can achieve them. But choosing to borrow some money to buy those things is not advisable. The best time i see borrowing of money necessary is for emergency, especially when it involves someone's health.

What i noticed is that it is very difficult to pay back a loan when the loan taken was used to start a project. Perhaps, doing furniture's in your house and beautiful it is a project. Some persons take loan to start doing all these in their new apartments, so they end up needing more money to complete the. By so doing all other money that comes in after taken the loan is being used to complete what they have started which will make them take long to pay back the loan.

I will advise as many people as possible to always avoid the use of loan as an alternative means to make it in life or starting a business, such is a bad idea because many have been in debt at the cause and couldn't afford to repay back their loan, we have to learn the various means in which we can earn and save for for the future use, instead of taking loan, we may not be able to manage our debts if we are into it on a wrong approach.

Although basically loans are not something that is forbidden or even forbidden but yes in the end you will experience a lot of adversity if you make or treat loans in the wrong way, namely as you said which is where utilizing loans to survive, although not this is a problem but if you are too excessive and even you don't want to work because you think that loans can help you in terms of making ends meet but still in the end the mindset and habits will lead us to disasters such as getting into debt.

The point is that we must think rationally and be someone who is responsible in any case, meaning don't make decisions before you really consider everything from various sides, especially from the negative impact, because by having this mindset then I think it is less likely for you to take a loan without having the ability to pay it.

Taking loan is never an option for me because I don't think I could use the fund well without being panic of how to pay for the fund. There are people that knows how to manage funds and they are very cool at that getting loan and using it to do business that would yield them more profits when used for investments purposes. Debt management is a very important one for anyone that would to monitor the way they spend and how they should track their spending which is going to give a full awareness on how to balance debt and expenses. If we know that we are not good at tracking our expenses then we need to try enough to follow the debt management.

Almost everyone has debt, even if it's a small amount, but no matter what, there still has to be a way to control it so that it doesn't escape control, which is called a management system, because for every performance we have to create a kind of financial analysis program so that every business we run can run smoothly. perfect and healthy, debts and receivables also need additional information, for example the background of the person we are borrowing from so that problems do not occur in the future.

It's really hard if you dig yourself in loans and debt that you can't pay off. I guess one classic example is having multiple credit cards. And this is the worst as you can take advantage and pamper and think that it is the right way or you have justifications that you can buy anything you want and then pay later.

However, when you max out even just 2 of them, most likely you will be in a huge pile of debt. And if you uses to pay just the minimum, then you have been trap by this banks. So as much as you can, closed everything out in a month or two. Hard lessons for me, as I'm on a debt reconstruction already and my goal is to pay them this year.

Actually, debt is not always bad if we can manage debt well and correctly. Apart from that, debt can be good if we can actively make the debt productive so that it can generate income. If this doesn't exist, then it is true as you say, debt is a source of problems for everything that ends up digging holes and closing holes, even with debt we become stressed if we don't manage it well.

Many rich people are in debt because they can use this debt as a source of income because they owe money for their business. So it is not surprising that rich people are good at taking advantage of the debt system, and in fact that is the initial goal of financial institutions to pay debt interest. So that they can benefit from the circulation of money that we create. However, the problem for many people is that they are in debt for consumptive things, which is actually the same as us being in debt to ourselves in the future, in other words, it will become a burden for ourselves.

You won’t be panicking if you have a stable source of income to rely on. Let’s say if you have a decent job or a successful business, then you won’t worry on how to keep up the payment since you have stable sources that will surely generate you good amount of profits. However, it’s still much safer not to indulge yourself in a loan. Aside that you can make a good amount of savings from your stable sources,  you won’t have to worry as well whenever you money comes in delay, as that will also add additional interest into your loan account.

Borrowing isn't inherently bad, but it's how we handle those borrowed funds that affect our financial well-being. Unexpected situations can arise, and sometimes borrowing seems like the only remaining option.
But it's your responsibility to return it according to what you agreed upon when it was lent to you, whether there's interest or when you should return or repay it. I know many people who are buried in debt because of wrong practices, thankfully I'm not like them. I'm angry at people like them that's why I don't lend money anymore because I'm the one who will suffer in the end if they don't pay back. They say, I thought it's more embarrassing to borrow, but it's more embarrassing to collect.

In today's times, it's crucial to be practical to become debt-free. This entails not only cutting costs but also making wise investments, offering a holistic approach to managing debt.

It’s not just about the ability of the individual to pay back the loan on or before it’s due date. In my opinion, you must put the money taken out as a loan to good use. The ability to pay back is important no doubt, but the loan ought to be put to good use as well.
Note that loans that are being given out either from either loan sharks or  financial institutions(banks) would require a collateral that matches the value of the loan as well as an interest rate attached. If you don’t pay up when it’s time, your collateral would be then possessed and used to settle the loan.
Now imagine one taking out a loan of about $10k while using his home as collateral. Squanders it at the casino, finds it difficult to repay and loses his home.

The best debt management of all is to not have any debts at all, do what you can to live within your means, never go out of your way to spend more than you can afford, take for example eating out on a restaurant, you could probably just eat at home with homecooked meals, you're learning and improving a skill and you're spending less money. The only time that you should be borrowing money is when there's no interest and no due date involved in the loan or that there's a guaranteed money that will come and you were just out of money at that time, by all means do what you can to not get into debt or have a debt that will stay for a long time because it's a looming anxiety for you and you're never truly financial free if you still got a debt. Only time that a debt management is needed is if you've got a business.

That depends on your financial status, if you're below the middle class or on the verge of poverty, you're probably better off not borrowing and trying your best to budget what you've got, it's also a bad idea to borrow or loan money when it will take you a long time before you can return it, you will destroy the connection you've got with the person or that you'd have a hard time making them trust you because you've borrowed from them and you didn't return it at the right time.

After all no people or any state in the world is self-sufficient. If necessary, he has to import or purchase many things such as food services public resources and others. Many countries borrow for strategic purposes and many countries borrow for specific needs. The key issue here is how to manage these loans. The more efficient the country is in debt management the faster the country can develop. In this regard all the ways you have highlighted are undoubtedly very valuable but the most important are public awareness transparency and accountability. Because I have seen many countries where there is no lack of constitution or law, there is no transparency and accountability too, no objective is accomplished and delinquency is involved which is highly reprehensible.

If you have ever faced such a complicated problem in terms of debt and also in terms of receivables, of course you yourself already know how to handle it well because this is also based on your own experience. And for entrepreneurs or businesspeople who have taken debt to make their business more advanced, I think this is a good example of placing debt as an important thing because with this we can develop our business to be bigger. But what needs to be remembered in this case is about how we pay it on time so that other problems don't occur, because most of the problems that occur through debts and receivables are when someone doesn't pay them on time.

I agree with that, if we have a clear income and of course before that we should be able to manage our finances well, and with that, we should just save to buy what we want, don't force ourselves to be able to buy by borrowing money. with the idea that you can pay back the money you borrow because you have a clear income, because if you can buy it with cash, why should you borrow? Also, by saving, we train ourselves to be able to manage our finances well.
Don't let us force ourselves to be able to buy what we want by borrowing money, because no one knows what our fate will be like in the future, just to be safe, in my opinion, it's best to be able to buy what we want by collecting it.  money first. rather than borrowing money and being afraid of problems such as accidents or maybe it will make things difficult for us in the future.

Business loans are not always bad but there are some factors one needs to evaluate before they go ahead and take a business loan. The very first thing they need to check is whether they have a foolproof business strategy or a business idea that you know can be successful and earn you enough revenue that you can use to keep expanding your business and also repay the loan you have taken to start the business.

I wouldn't recommend anyone taking personal loans because it becomes extremely difficult to pay back the loan if you don't have a good income or a running business that you know can let you cover up the loan and the commission and repay it before the deadline provided by the lender.

Most people think that once they start a business, things will always go well. Sometimes the business you have established may not provide you with the results you want and it may be difficult to repay the loan you took out when starting a business. In order to avoid such a situation, it is necessary to make a very good plan and analysis.

The income from the business you will establish must be sufficient to repay the loan. The problem is not just paying the loan, the earnings must be continuous for the sustainability of the business. There are many problems like this, and planning in detail is of great importance when managing debt.

I would say dont be in a debt or attempt to make choices in such a way that a debt is never incurred. A debt is a constant headache, at least from my perspective, it makes me uneasy to feel that I owe someone money and have not been able to return it till date, be it a bank or a friend.

The concept of debt management comes in because people dont spend as per their needs and their income. If they did, they would never be at debt at all. There are methods to cut down on expenses but few people actually are diligent enough to employ those.

Try putting your credit card away and manage your expenses in a way that you have some saving at the end of the money - its a rigorous exercise, but it can be done.

Paying debts on time is a form of responsibility and also good ethics. I am never late in paying my debts because I know which ones are my responsibility, which ones I have to prioritize and also the reputation I have to maintain.
Responsible people will definitely have a stable and comfortable life, we don't know what will happen to us in the future if we have a good history of paying debts then we can borrow money again in peace without being suspected, that's it, paying debt on time and being responsible for debts is a form of maturity and also good debt management.

If the context is debt for consumptive needs is certainly the wrong thing, however the reason is wrong, it is not a good thing for a finance if consumptive needs are fulfilled by money from loans it is an action that will burden us in the long run, I agree with you if in the context of consumptive needs. Then the solution is to economize and only provide needs according to our abilities.

But debt will be a different story if we are a businessman, this will be an additional wheel for business trips, mechanisms like this are still effectively used to expand the business we are building, but not the initial capital stage, but for the stage where we are already able to finance the financial flow of our business and then we want to expand the influence of the business then debt is not a problem as long as the deposits we make to debtors are still in a size below 10% of net income each month.

Yes, we must be responsible for the initial decision when requesting a loan and we definitely promise to pay at a certain time, we must definitely be responsible for the payment time that has been determined so that you do not have a history of negative behavior or inappropriate promises to the borrower, even though we You don't have to pay interest on the loan, but appreciate that the borrower has provided a financial solution when you are in dire financial need. If we apply a responsible attitude towards other people, we will trust you forever.

If you apply for a loan to the service then yes usually you will be asked to tell them about the amount of salary you have from your main job, besides that when indeed the salary you have is quite large and meets the requirements of the loan amount you apply for then yes you just have to sign and promise to settle the debt until it is paid off, and on the other hand I think it is less likely for a borrower to be irresponsible because usually the service will ask for something to be used as collateral when they are unable to pay then the collateral will be confiscated.

As for interest, it depends on where you borrow, if you borrow from a relative or friend then yes usually the loan has no interest but if you go to an official service then there will usually be a few percent interest depending on the policy applied, But overall it's clear that when you have a loan you are responsible for paying it back and as you said, the risk of not paying back a loan is that you will usually have a negative record with a service which will make it difficult for you to borrow again in the future when you need it the most, so I think loans are only really useful when people are responsible, otherwise they will have problems as a result.

Sometimes debt agreements must be paid at the right time, and if they are late there is usually interest that will increase over time, and there may be people who borrow money and then pay it in installments like once a week. If we have borrowed money then we should pay it because it is an obligation. If we borrow money from the bank and we can't pay it back, we might be in trouble. It's like the person we're dealing with could come to our house and talk to us about the debt that needs to be repaid. 

I agree with you, loans do help our finances, and we take loans because we need money either to fulfill our needs or for other things.

I agree with that, indeed we have to pay debts on time according to what was agreed at the beginning, because it is impossible not to have an agreement at the beginning when borrowing and borrowing money with mutually agreed terms regarding the time of payment. It's true what you said, when we have debt then we have to pay it because it is a form of responsibility, because if we can pay it on time, then the people who lend us the money will trust us and they can lend it again when we need a loan. but when we don't pay it then it will be a different story.

Being responsible is a must because it is good etiquette, we must be able to thank people who have helped us with financial matters. But don't make it a habit either, because I think it could end a good relationship if we can't pay it, so you have to consider that before borrowing money.

I fully agree with the statement but out there some people just don't grasp that responsibility that they are having after getting some loan from other people even from some institutions too.
personally I just never have the urge to have some debt, because it just doesn't really give me peace of mind in the long run I mean living with a big debt gotta feels really uncomfortable I mean working just to pay debt, getting our wage cut down to just half every month is just a big no for me.
but its also understandable that if taken advantage properly these loans gonna be lifesaver, but as a human we definitely have the desire to take up on a loan for something that we really don't need thats where financial discipline and education comes to play.
we should just try to calculate the weight of our debt for the long run using our knowledge in regard of financial and economy knowing a good debt and a bad debt, the bad one are the ones that just unproductive debt, just gonna burden our financial condition in the long run.

It's true, living with a lot of debt is not at all peaceful. I think when we have a big debt, maybe every day we will continue to be haunted by a feeling of unease. except maybe the person who has the debt doesn't care about the debt they have, but it's not right if we forget about the debt we have even though we have to pay it off because it is our own responsibility to have the debt.
It's very uncomfortable if we work just to pay off debts we have or have had our salaries cut because of debts. In my opinion, this usually happens to those who work in factories or maybe there are people outside of that too. In my opinion, even long-term debt may have interest, which could make things difficult for us in the future, especially if we take out a loan and have debt from a legitimate bank.

I fully support your statement not to engage in debt for purely personal and without any business purposes. But there are many areas where larger objectives are involved, such as business, where borrowing becomes a major issue. Because it is never possible to build or develop a big business with a single source of finance. So their business is established by taking loans. Again when a country wants to participate in any development work it takes loans to achieve strategic objectives. Many countries are often able to get things done by borrowing despite their ability. But I think it's very important to avoid using loans or credit cards for personal luxuries and I agree with your comments.

There's only two possible reasons on which i would consider myself on taking up some loans;

1. Business expansion/Investment plans
2. Emergency funds (shortage)

On option #1 then this is would really be the best consideration for you to have on which you wont really be that making yourself wasted it up since its been applied on business.
Although there would really be no assurance about success but at least you have applied it on the right place.

For #2 then we cant really be able to have that unlimited funds, if emergencies happen like accidents or hospitalization then you wont really be having no option
but to take up some loan if there's some shortage.

Yes that's right, so we try to be able to pay money on time according to the time we have promised is a form of extraordinary responsibility, I myself very rarely find people who do this, so from that I am very careful also in lending money or borrowing money to others because it is very sensitive when it comes to money, I myself if I want to borrow money need to advance myself first and when I will get the money and how much money I can afford to pay in the future, it becomes my parameter in borrowing money, because the trust of someone who helps us is very important for the future, this will affect many things if trust becomes damaged if we cannot be trusted.

Therefore it is very important to manage debt so that it can go according to plan and there is nothing detrimental, including what money we borrow is used for, this needs to be protected if using money just because of prestige and so on and that borrowed money is an act that will make us bad in financial terms.

Managing debt can feel like a never ending battle, but it you follow the right moves, and stay dedicated you can do it.  I think one of the biggest first steps for a lot of people with a great deal of debt is simply running a monthly budget.   This was lay out all your monthly expenses, make sure you're spending money where it should be spent, and not where it shouldn't.  This goes A LONG WAYS!

Totally agree with you mate. This is because most of us don't prioritize needs I know not all but I think majority has different mindset about this matter especially debt and overspending. That is the most common reason why some of us remains broke and unable to rise from poverty if we are already there. I think we should change negative into positive mindset to achieve a much better life. I was once like that to be honest that is why I really had to make find a solution.

Yes exactly what I wanted to convey is very clearly and relevantly presented by your statement in few words. First of all is life, so if there is no option to take a loan for any critical moment of life, there is no option but to accept it. And we must invest to finance and improve our daily living. So in these cases we have to move towards development through borrowing. For we see that an arrow moves forward with a great speed only when taken backward. So this going backward is not actually going backward, it is the only way to move forward or accelerate development.

When someone can manage their debt well, of course they will never plan to go into debt for things they don't need, such as developing their business by aiming to develop the business, of course this will be able to make the business we run have an even greater income than than before and we also have to have a good plan before deciding to lend money to develop a business, because if we don't have a good plan of course it will be difficult to pay off the money we lend.

Having financial records will help us not to spend the money we have on useless things, because when someone cannot use their income properly of course they will be in debt and will have difficulty paying it off, so this is very important for those who don't want have debt to use their income well so they don't have to go into debt to meet their needs.

Some people's methods of handling debt will just make it harder for you to borrow money from others; they may even begin to shun you. merely due to the money. Furthermore, paying on time demonstrates your responsibility, and given the way individuals behave with debt, it may even destroy your connection. Furthermore, some people feel that they have enough life experience and don't want to borrow money from others. Additionally, they can use sweet language to borrow money from you, and when the time comes to pay them back, they will start to avoid you.

All you need to do when your owing is to plan how to pay back. But some people don't even care anymore. The same way the debtor needs money do the borrower.


If not for it, a lot of people no longer give a damn about their reputation. If you were not concerned with your reputation, why would you take out a loan? It's ideal to borrow money with the intention of paying it back. I can think of quite a few individuals who have taken out loans from me and declined to repay them. However, I've discovered that I don't lend people money since I am aware of the money lost as a result of borrowing. I'll lend a hand if I want to, but I don't think I should borrow money. If you know you can pay what you borrowed don't bother borrowing.

You will fail if you try to get rid of your debt with a general plan. Debt is a threat, so deal with it as such. You need a plan that can handle anything that comes up in real life.

Keeping track of your money? That's the very least. A deep study shows how you usually spend your money. You have to admit that your spending will get out of hand if you can't stop it. Preaching how to handle your money? It is clear. People fail when it comes to execution (self-control, brutal honesty).

Debt is not bad. There are two sides to leverage. You need to know how to use your plan and have a plan. No matter how much debt you have, one mistake can sink you. This market is unfair, separating those who are good with money from those who aren't. Change or get left behind

Well, not paying debts on time will cost you more though as there will be another interest on top of your monthly amortizations. So, that will force everyone to pay on time. Maybe paying ahead of time when you have available money in your pocket is what we call a responsible payer. Paying on time can be missed sometime especially when there is an unforeseen circumstances that happens and will require an immediate funds, those funds intended to pay for debts maybe used in such cases.  That is just one of many example why we are missing a payment, so it is always better to pay ahead of time, let's say pay it a week before the actual due date.

Avoid spending beyond your budget

You wont really be having no debts if you would really be living according into your means or something that in talk about sticking into your budget because once
you do make yourself that go beyond those numbers then most likely you would really be getting up some loan for you to be able to have some patching which its not really that a good idea.
This is why it would really be that best that you should really be having that strict budgeting if you dont really that putting up yourself on such trouble.
Avoid on taking up some loans as much as possible if it wasnt needed not unless if it is for the sake of business or investment then it might be reconsidered but if not then
better not to do such thing or action.

Yeah from your stand point you are right, but I think you should also know that there are people that use debt to make money and avoid taxes,I believe you should know how money is created an thats through debt. Debt can be a useful tool to someone who understands and knows how to use it, if you are a business man you should know you can leverage on banks loan to build conserdrable wealth.

But as a normal person, the worst thing you can do is get into debt for liabilities that won't generate any dividends, such debt can destroy you, and that's when this rule would be valid.

I don't think not paying loans or debts on time is a choice but it's a compulsion because no one would willingly not repay a loan on time even if they have the money to do so, it would only be late for someone in repaying the loan if they don't have the funds to repay it on time which is why I never recommend taking personal loans unless someone is sure that they will be able to repay it as they have some funds incoming or have some payment in the pipeline that they will receive in the near future but they need money urgently so they take a loan.

If a person doesn't have any funds on hold or have any payments coming in in the future, they should never take loans because they wouldn't be able to repay it on time and as you said, that isn't good ethics and it will make the person have a bad reputation.

I stopped collecting debt because whenever I missed the due date, the interest rate would be increasing daily and if I don't have money to pay on time then the interest would be accumulating to a reasonable amount again before I would have money to pay the interest would be almost equal to the capital. So I don't like loan at all. Except someone I know gave me the funds and we are agreed that they would be no interest to add them I will take the loan and pay back on time because they person too has programmed himself to use that money on that due date so any failure to provide that money, will also affects his plans. So those are some of the technics for debt management.

Personally not wrong with debt or taking loan for business capital depend has balance under 20% loan of assets having, but many people take risk with bigger debt or loan than how much assets they have and get collapse with their business have to sell all their property or assets to recovery loan interested.
I think debt management is very important for businessman want take loan for their business capital, during have balance and under 20% of assets of loan its not much problem and still can recovery for loan interest when the business not running well.
Currently problem, the businessmen not make good roadmap when taking loan and looking the opportunity on one side only about profitable earn and ability to recovery loan interest, but if the business fail how to pay loan interest because most bigger debt than assets having?

Op thanks for bringing such discussion, it's really important.To my own understanding debt management is a pave way that reduce debt and create an avenue for making budgets and financial goals.Borrowing money is something that happens everyday, people lend huge amount of money with interest from companies, organization etc.Some people lend money with a wrong motive,like for instance borrowing to play a bet and unfortunately it doesn't turn out the way it was expected that's a wrong decision.To me debt is more like risk taking because some people sign collateral with their valuables like (house,land,car) and at the end of the day if the debt wasn't cleared at a due time the borrowers won't have the chance of redeeming the property because it has already been signed by both parties as a collateral.A debtor is never free.Debt can be reduced if only we learn how to manage it;
1.Being satisfied with what you have
2.Being contented with what you have
3.Cultivate the habit of saving from your income
4.Investing on safe haven asset like Bitcoin
5.Don't borrow with the intention of clearing old debts.
6.Being fruitful, productive and creative will help reduce debt.

with this interest, perhaps this is a benefit that can be obtained by the borrower. but in my opinion, this also proves that loans are not free, because there is interest which can increase every day, especially if we cannot pay the debt on time. Before borrowing money, in my opinion, the thing we have to pay attention to first is whether we will be able to pay it or not, if we can't then don't do it because it will only add to the burden on our minds.

Interest on borrowed money usually occurs when we make a loan from an official party such as a bank, which is a place where money or debt is not uncommon. However, if you borrow money from friends or other people, it is unlikely that there will be interest unless the borrower really wants interest, but in my opinion that is unethical too.

As a human being, there's no such thing about being that contented. We can never to have that kind of contentment on something here in our lives. As long we do see that opportunity that we would be able to live in a life which is convenient and even if it means that you would really be needing up to take up some loan for you to acquire it, then you would definitely do it on which we know that this is something a suicide.
Its never been that recommended that you would really be taking up such action because you are just basically putting up yourself on such bad situation on the time that you would really be experiencing
that paying up tons of interest on the loan that you have gotten.

Getting up some loans for the benefit or for the purpose on making up some business expansion or making investment is much more better than in compared when you are really that
spending or getting those loans for the sake or benefit of buying up your wants and this is something that you should really be avoiding at all cost.

Practically speaking, people must be able to recognize the nature of loans and what needs do they take the money for? Loans that we take out at official places such as banks and others will have rules where we have to follow these rules if we want to borrow.
Monthly fees and interest are an obligation for the borrower to pay and the consequence is that if they are unable to pay, the loan will be in trouble. In the end, the collateral we leave behind will be auctioned off if the loan cannot be repaid over time.
It's different from borrowing money from friends or relatives because they don't make conditions like banks. But do they dare to give large loans because we don't give them a handle? Borrowing money is not appropriate, especially if it is used to fulfill a lifestyle and people like this will never want to be free from debt.

That's right, to borrow money from an official place such as a bank or other, of course our aim must be clear about what the loan proceeds are used for, because if the aim is not clear then it seems that the official party will not provide a loan, and as far as I know, even before making a loan we will be asked several questions, such as our background with work and income, last educational position and other things, maybe this is to make it easier for them to find us when later we can't pay off and maybe also background such as work and income is one of the requirements to be able to take out a loan, because my friend, who doesn't have a job and no income, was also born from a poor family, he always failed to apply for a loan at an official place like a bank.

What you say is correct, of course taking out a loan from a bank is different from borrowing money from a friend, and yes the difference is in the requirements, maybe with friends there are also requirements but it won't be exactly the same as borrowing from a bank. Borrowing money to fulfill a lifestyle is not a good thing, what's more, in my opinion, people who will take out loans to fulfill this lifestyle are more identified with young people. It is unlikely that those who are married will borrow money to fulfill their lifestyle, and even if there is, I don't think they can think clearly, why should they borrow money to be fashionable, even though they need to pay more attention to their needs.

The kind of loans you are talking about here is the kind that comes from family and friends, no financial insight or legal money lenders would do that for you.

Debt IMO in not such a bad thing and can also be used in other ways, the only thing I frown on is when people take loans to solve problems like liabilities, how would you consider taking a loan to buy a PlayStation game or maybe a loan yo eat or get a dress, that is wrong usage of debt, debt should be used to make money.

Do not borrow funds to clear debts

Dont tend to have this kind of approach on which you would really be digging your own grave. Paying up a loan via another loan? You are just that piling your interest.
On the time that you cant be able to bare up with the interest anymore then this is the time you would be able to realize that it is really that very wrong on the thingthat you have done.
When you do have a debt then you should really be that arranging it out on how you would really be gonna repay it specially if its really that a multiple one.

You should really be that sensible on the things that you've been dealing or making up decision with because if you dont then you would really be finding yourself at great
trouble on which this is something that should be avoided in the first place.

Banks in every country offer loans to their customers in several stages. In the country where I live, banks usually offer relatively low interest loans for a few things. I can take money loan for building our house here as well as for business I can take money loan and I can also take loan for agriculture. But there are certain conditions in these cases and the bank will give me a loan according to my position subject to certain conditions.

  Yes, especially when you are a monthly earner. You can figure out specific amount of money to be saved for an unforeseen circumstances that might come across your ways. If such things happen, you can easily deal with them without the knowledge of anybody.
One should try to discipline himself by learning how to manage the little resources that you have instead of living beyond your earnings. there's a saying which state that cut according to your size. this means, one should buy what he can afford to buy and before buying or spending money on anything, you should try to know it's importance and benefits you can derive from it to avoid regret at the end.

For a successful living, if one wants to take loans, before doing that, make sure you have the full knowledge of what you are doing and how possibly it might end up. Although, nobody knows what would happen if it hasn't happened, but still, some time you can predict due to the kind of experience that you have gotten from the previous time.
  So, we aren't saying you can't take loans, you can take it if you want to but take the necessary precautions before taking it. That can be done by some of the following;
1. knowing the principles guiding it, like the duration for the repayments of the loan. make sure you can be able to repay it with in the time specified.
2. Also make sure of what you are using the loan for like it's legitimacy.
3. Your own ability and capacity that's by making sure if you are good to go on your own

Only a very foolish or unprofessional investor would invest in a business that has no statistics or isn't already established. I Don't advice to borrow money to start a business cause there isn't any guarantee that the business would stand and if it doesn't you have a debt on your head to pay. But it's better to borrow money to support your business or establish it bigger after the foundation has already been set by you and that way it's easy to get investors in too.

Debt is good for those that understands it and I still stand that debt is used properly can generate good wealth for you.

The whole "borrow more to fix your debt" ruse is fraud. Interest builds, digs deeper, and before you know it, you're drowning. Everyone can lead, okay? Knowing how this mechanism works is powerful. Choose the debt with the highest interest rate; the most financial drain. Like fighting your way out of a tight place, focus on the biggest threat first

Not scrambling to pay off debt, but altering the game. Adjust your spending. Cut unnecessary expenses, set a budget, and follow it. Not a temporary fix; this is a new money management strategy. Nobody expects you to accomplish this alone. Feel free to ask for help if it's too much. Someone else's perspective can change everything. Don't despair or retreat

Indeed, taking out a loan is not wrong, especially if we want to start a business, but it is true that even though we can take out a loan to start a business, of course we have to be able to balance everything so that we don't borrow money, but that will only make us more miserable. If you really want to start a business or venture but don't have enough money to use as initial capital, then taking out a loan is one way you can do it, but you also need to pay attention to this and not do it carelessly.

To be honest, in my opinion, if we really want to do a business or business, we have to be able to think about the risks too, and in my opinion there are people who are very enthusiastic about starting a business so they can take out a loan to start it, but they tend to only think about the profit side, therefore They only think about the benefits, so they don't think about the risks that might definitely happen, especially to those who don't think about it.

Before you can be granted loan there will be a lot of assessments before your loan can be granted because of people that will default. I don't see the reason why you take loan and you will not want to pay back. I think that will depend on countries because banks are known for there high interest rates when ever you take loans. Taking  a loan make sure is for something relevant. And loans for houses you have to have a good salary scale before you can be granted such loan. And some in there terms and conditions you need to provide a collateral worth the amount of the loan and a guarantor. If you meet up with there conditions then you will be granted the loan with ease.

This one thing that we don't understand in the aspect of borrowing when you know that you have a project that you want to execute and you need the money to carry out the project pcfully I think there is nothing bad for someone to make sure that it has borrowed the money to bring out the image or the picture of what he or she want because there is no life without a debt and the for you to succeed in life you most take a risk

For business, it's actually a good debt. But for someone who'd use debt for his personal pleasure, it's a bad debt and not recommended to you.

What most of the people don't understand about debt is using it for important and emergency purposes. But nowadays, people are also taking care of their mental healths and using debts for their pleasure and vacation.

Well, that's them and I am not going to ask for a debt and will use it for vacation. If I can't afford to go on, then I won't go and will save up for that.

One of the main reasons people become deptors is not living according to their standard as living a lavish life style with out a proper planning will eventually lead's to you borrowing

That's true, living a lavish lifestyle is one way someone could be forced to acquire more depth, especially when the person is not very wealthy. For instance an average person who owns a Toyota carmy but desires a GLK could be forced to go take loans to satisfy his/her desire and acquire the GLK which is not very important  at that moment. You could image such person depositing a landed property as a collateral to get loans to acquire the car.

 Automatically, the person becomes a debtor and not only that but would end up losing an asset because of a desired property that's not fetching the person some money but could become a liability because the person would end up spending more on not only maintenance but on fuel because he's no more using an economic vehicle but a luxurious one that would consume more fuel.

 This is the more reason why people should live according to their limits, do not be oppressed by anyone or live a life beyond your budget to impress people, else you midht end up putting yourself in a huge debt you'll live to regret.

I think it is a good decision, sometimes I wonder why people would go for a loan that dip down in their mind they know they have no means on how the dept will be played.  When one always go for the loan that they can easily pay back it help financially especially in business.  What had made so many businesses to fold is when people go for loan that is bigger than thier business at the the end of everything they won't be able to pay the loan.  This affect business so much that may end up paying the loan with money that is made for business.  Every business has a limit of loan that won't be a burden or stress to pay back.

I'm not sure all the stuff you've put in there is necessarily true. Take "do not borrow funds to pay off debt" as an example. There is a strategy out there of using a consolidation loan which is suitable for some people, although that segment might be relatively small - if you can get a loan rate better than the average if your remaining debt, then it's definitely worth paying off other debts with it to lower your repayments. Also, the only really worthwhile type of debt out there is a mortgage, as the asset is appreciating over time and usually higher than the interest rate you'll be paying over the lifetime of the mortgage.

Something that can collapse your business and you are saying is not wrong, loan will not allow you to concentrate in your business or hodling because you will be thinking how to pay back the loan and it can make you not to make a good profits from your business because your mind is not on that business.

Never allow anybody to encourage you to borrow money to start a business, because I have seen many people going to the bank to borrow huge amount of money to start a big business and something happen that make the person to committed suicide because there is no way he can pay back the money than to end his life, which are some of the things loan can cause.

If you want to live a good life to live long to enjoy your wealth, never you dream of loan no matter the condition you find yourself because it will not help you to grow well like other business men and women in your environment.

Banks will only allow loan money to you if you are a government employee otherwise it is not possible that the bank will give you a loan without your identification. If a bank gives you profit then it does not mean that you will return it according to your affordability but the government will fix the amount and timing so you will return some percentage from your salary on a monthly basis to return that loan amount.

Taking a loan will minimize your salary and you will become unable to manage the monthly expenses of your home therefore save little by little from your salary and when you accumulate a huge sum then either invest it or save it.

You're absolutely right.
There are certain situations you'll find yourself, borrowing some money to pay off an overdue loan could prove to be quite a viable approach, such as a credit card transfer or consolidation of debt with a lower interest loan. These strategies can really come in handy and help to simplify payments as well as save on interest.

Regarding Mortgage, you're also very correct that they could be considered a form of debt, especially when there's an appreciation in the price and value of the asset and the interest rate is also reasonable.
As a matter of fact, mortgage can equally considered to be a form of forced savings, because the owners of the asset builds equity in their properties on the long run.

We've all heard the bad stories, businesses folding under debt. But avoiding loans altogether, that's not smart, that's scared. Some of the biggest wins come from smart borrowing. It's not about never taking loans, it's about doing it right. If the idea of a loan feels like rolling dice, you ain't there yet. But if you've crunched the numbers, know your market inside-out, and have contingencies in place... that's different. That's not gambling, that's calculated risk-taking. Arm yourself with information, find advisors who aren't afraid to tell you the hard truths, and then? Then a loan might be your rocket fuel, not an anchor to the ocean floor. It's about strategy, not just saying "yes" or "no".

If you are just starting up for sure taking some loan will never be a great idea since for this you are already at lose since imagine the percentage you need to pay with those loaning institution which can affect your business especially if this is not in stable situation. That's why I never recommend anyone to start with loan since they will just be in huge mess with that especially if their business fail for sure there life will became more miserable. They can actually take loan for expansion especially if you business is already well established or sustainable since this could able to help you to increase your capabilities to gain more money and I think this is what we called good debt since you are for expanding and your business already could able to pay those amount your borrowed from institution. If I am not wrong if you have good credit score with bank, you can negotiate with the rates or other things that may favor on your side.

I don't agree with that very part I bolded, there is nothing absolutely wrong optioning for a loan if the intention is to increase your credit score, my wife and I are testimony to this, we actually relocated in to a new area and later started a provision shop in front of the house of which we discovered that there where no provisions shops in that area we took that advantage and started one with few items just as little as our we can afford at that time, but as time goes on there were several demands of certain goods which were not available because of our limited capital but considering the intensity of the demand of those goods that were not available, we took a loan to buy those goods and we paid back even before the expected time  and that has expanded our business and boost our credit scores, no one should be a debtor on the occasion of trying to sustain or maintain a lifestyle. However, many find it difficult to pay  debt as a habit even when they have it this is one simple truth that is very bitter.

The term borrowing is always said to be bad among people and indeed the effect is big when you are in debt but the money is not used for more productive things. Borrowing money to develop a business is not bad as long as we can make good plans. Debt is much more productive if used to develop a business that has been assessed as having a high level of success. With a smooth business, we will be able to plan or take care of the necessary financing so that debt does not become a problem in our lives

It is a fatal mistake to take out a loan for unnecessary needs, such as to fulfill your lifestyle and buy something you don't need. If you take on debt to develop your business, it is not a problem because without taking risks we will never know the success we want to achieve. It is important to make a plan, both for debt payments and procedures for developing your business so that it progresses further.

Taking loans for business purposes is never a bad idea, especially if you know that your business can generate enough revenue using that loan to make it possible to repay the loan on time or even before it. In your case, this was exactly what happened because you already had your business started, and you were witnessing the demand for certain products that you knew would generate good revenue for the business, so you felt confident taking the loan because you knew it in advance that you are going to repay the amount before time.

However, it's never a good habit to take personal loans when you don't have a stable source of income and you are not sure whether you will be able to repay the loan on time or not because when you are not earning money at all or not earning constantly, you will only become a defaulter at the end of the day and that isn't a good practice.

So there are good debts and bad debts, a good debt is the debt that is easily payable and wouldn't create problems and a bad debt is the one that will get the borrower in trouble because they won't be able to pay it easily.

We should face the fact that there are  a lot of debt systems in the world in the past 20-50 years, and many of them building up more and more, and there are ways to take advantage of such systems without abusing them or putting yourself in a bad situation - so debt can be used in a variety of smart ways in order to enhance cashflow or even build up a credit score for potential future use (Tmoonz mentioned) - that could also be thought of as a kind of insurance policy.

Frequently with debt things could be purchased at an earlier time that otherwise might not be affordable - including if you might have to wait 10 or more years to save up and you might lose some of the value of time, whether that is buying a home that you might never be able to buy if you had to save up in dollars that are losing their value.. .. of course, these days we have bitcoin, which is likely (at least historically) has been a way better way to be saving up for some future high ticket item purchase, such as a house.

And, yeah, the whole system of debt is screwed up since many folks have to get into debt in order to get a higher education, and sometimes that can make sense if you are later able to increase your social status or your job skills and perhaps be able to get into social/employment circles that you would not have previously had been able to enter.

Sure, the business or investment examples are not a bad ones either, and yes that relates to productive rather than consumptive purposes, and so some of the ways of thinking about a loan would be to consider how much the loan is costing to service  - which surely such costs of any loan can be projected out and surely some folks are able to garner better loan terms than others (both in terms of length of the loan and interest rate), partly based on credit score, but also might be based on putting up collateral.  Part of the calculation for the loan should be a consideration that whatever you are doing with the loan is going to be able to earn you equal or more money than it costs you to get the loan.. and surely some of those future numbers are not completely known, so many times there will be some risks in terms of being wrong in your calculations, so surely you should be trying to make sure that you are able to service your loan (in whole or in part) from funds that are other than the thing(s) that you are investing into.

It seems in this thread that a lot of members are focusing on the negative aspects of loan, which seems to include both when people are getting loans for potentially ill-thought out reasons, and so sometimes they will end up getting into bad situations when they are using loans to consume beyond their means. but maybe not realizing that they are engaged in such ill-thought out practices, and surely those are things that happens with loans - but the mere fact that people use debt in bad ways and don't know how to manage it does not mean that it cannot be a powerful thing that we should be able to use to our advantage.. especially if we either have cashflows to service debts, we may be able to increase our cashflows with such debt and/or we might have various assets that we are able to put as collateral .. and surely maybe some of our assets are accumulating value at a rate that is equal or greater than the costs of servicing the debt (whether there may be ways to use bitcoin as pristine collateral or other forms of collateral that we might believe is more valuable to hold onto rather than to sell.. but still be able to generate cashflow by using debt - and some of the ways of managing debt can be complicated and not necessarily one would want to do without employing ways of hedging themselves).

Actually taking a loan to execute a profitable business that the proceeds can be gotten in a short period is good but to me if the demand for a particular goods or products is high doesn't necessarily mean you will enter into borrowing just to please your customers and also make some profits because sometimes, customers do demand for a particular product but as soon as you make the product available for them they may not turn up to patronize you again because at that time you didn't have it they must have gone to buy it elsewhere and may even buy it cheaper over there so they will prefer going there from time to time with the belief that you sell things at higher prices to them

If you even have a steady income what's the essence of taking a loan when you can easily be patient till your income arrives then you can purchase whatever you need and if it is something that is more than your earning per week or month then you can save up and get it instead of taken a loan.


To me there is nothing like good debt and bad debt, all debts are equal inasmuch as you haven't paid a debt you are owing. Even if you take a loan and use it for something important that you know you gonna pay back within a short period, what if where you hope on fails you? And again when paying back a loan it looks as though you are paying a free money to your lender and it also takes you backwards because the income you would have planned to use for other things you will spend it in settling outstanding debts.

I agree with you on that although I was channeling my perception in terms of  borrowing money for investment on one angle but however after reading your reasons and explanations I feel more clarified, actually what you said is correct because in as much as most people feel that borrowing money for investment is not good but their are numerous of people who are sustainable and making a huge profit on their business through the money they borrowed, however I think the negative and positive outcome of borrowing money is totally depends on individual on how well they were able to utilize those money.

Perhaps this discussion reminds me of someone who has a good business idea and was very certain of the success but the problem he was facing was actually how to finance it because at that moment he was financially unstable so had to go to the Bank to get some loan and with his good business idea he was able to utilize the money he borrowed very well by securing a good business and at the same time settle all the debt, so actually with a proper planning borrowed money could be use to achieve a lot.

@jayjuanGee, your thoughts are quite commendable, recommendable,and understandable. However, many people becomes vulnerable and prone to not being able to repay loan, because they have no better plans or even a backup plans as regards to replaying their loan, yeah it is also very important to have a backup plans Incase where the first plan didn't work out, while others will be considering taken loans with so much negativity, others are massively taken advantage of it, I will also like to share this experience that has been a culture ii my country, which is a scarcity of Petrol at every end of the year of about let me say between November and December, petrol are usually scarce and costly within this period and every one  knows how much of the importance of Petrol, I had a friend who owns a filling station, what he does is to mortgage a laon  from a bank and paid for petrol ahead of time which means he will be buying at a more lower price and sell very high when getting at end of the year which puts him a whole lots of profits. Those criticizing about taken loans might not just have the ideas of how to explore with funds when an opportunity is given or probably some might be scared of taking the risk taken loan mean while some risk really worth taken if only you know what you doing by utilizing it wisely.

It all depends on the products that you are selling. If it is a product that cannot be seen easily or yours is cheaper, what you do is to tell the customers that needs the products to pay a deposit to show seriousness that they need the product and is ready to buy it from you. After they must have made deposits, you can go and take a loan to buy such products and after supply, you pay back your loan.

My mom was a contractor when we were still kids, she goes to look for contracts on supplying of commodities for companies, and whenever she have a contract that she cannot afford to execute it, she takes loan and after supplying she gets paid and also pay back her loan. Loan is good in a business that the odds of generating profit is high than loss, especially in a business that you are well knowledgeable on.

In my environment, a lot of businesses are surviving through loans and they pay it bit by bit till they finally pay up. Some of them will even collect a bigger amount again after they have paid back the recent one.

I totally agree with you, yes nothing is wrong optioning for a loan just like u said if your intention is to increase your credit score, I don't think there is anyone that will went to option for a loan without having of better intention on the process we should also pray against unforseen challenges that may come up and scatter the good intention we have, in other not to enter into more problem that is one of the disadvantage of optioning for a loan.
There are some people that find it very easy to collect loan but difficult to repay back the loan they have collected with there sweet talk when taking loans this type of people end up losing there properties.

Loan has helped somany person in life today it has helped me, the business am doing now is a result of the loan I took and I have repay back and still stand strong in the business.
In summary we should always pray against unforseen circumstances  that may went to eat up the money we borrowed in other not to put us in more danger.

The mere fact that some people do not know how to utilize debt or they fuck up their lives because of debt should not mean that each of us should not figure out ways that we can become empowered from the use of debt, whether it is being able to improve our skills and abilities by improving ourselves through something like a college education or  our ability to get ourselves into a suitable house instead of having to wait for 20-30 years to save up to buy it with cash - in the event that we might not know how to invest our cash properly.


That is a decently good example.  Sure it is not guaranteed that the guy buying the petrol is going to be able to profit from his own ability to stock up extra petrol in advance, but like you mentioned it is worth taking the chance since there is a bit of a history that helps to support a quite likely scenario that the loan is likely going to be able to largely pay for itself and also deliver extra profits to him, and there are likely other examples of loans that can be entered into that are similar to that kind of a scenario, even though sometimes the results are not as tested or as guaranteed, but frequently the expected values of various scenarios can be calculated in advance in order to attempt to weigh the likelihood of profits versus the likelihood of losses and still justify the loan if the likelihood of profits significantly outweigh the losses (including calculating various costs associated with the loan), even if there may well end up being some circumstances in which the loan ends up costing more than the profits that had been made from the loan and there could even be some scenarios in which the losses are quite high, but maybe not as likely to happen but such less likely scenarios should also be considered in terms of their weighing into the calculation regarding whether to get the loan or not.

Avoid spending beyond your budget

Stick with this and you should be fine. You are out of your mind if you do spend which is more than on what you do earn on single day. You are really just that
simply burying your own grave and would be ending up on getting drowned because of tons of loans or debts on which this is something that should really be avoided in the first place.
Having that good budgeting and allocation on priorities is something that you should be having in mind.

Its not bad to buy up some wants for sometime or having some leisure but having that control is something that you should bare up on your mind as always.

Thank you for sharing your insights on debt management and the steps one can take to become debt-free.

Debt can indeed be a burden, and it is crucial to have a strategic plan in place to address and manage it effectively.

You rightly emphasize the importance of cutting costs and focusing on necessary expenses, distinguishing between needs and wants. Creating budgets and adhering to them can also provide a clear overview of income and help make informed decisions about spending. By avoiding spending beyond one's budget, individuals can prevent the accumulation of further debt and maintain financial stability.

I appreciate your suggestion of educating oneself about investments and financial planning to debt management skills. Proper financial knowledge and decision- making can empower individuals to make sound financial choices and work towards a debt-free life .

Thank you for sharing the debt management charts as well. Visual aids can be valuable tools in understanding and implementing effective debt management strategies

There's one thing that is involved in borrowing money if you want to borrow money make sure that you borrow a money that you can be able to repay and the secondly borrowing money is good for someone who have a good vision to invest not a someone who have a short Vision because if you have a short division for any investment you cannot utilize a money that you borrowed from someone but if you have a good vision you can utilize the money you borrow and they also diversified the money to bring out another thing so I don't blame anyone who borrow money to invest because it is a part of risk and the risk is one of the things that makes a businessman to be rich more

I too believed that taking a debt is not a good idea and risky. But as I calculated my finance and mortgage, a long term loan to buy rising assets or things that helps you like land or doing business or even buying a car seem to be better option when you are paying it in multiple years. If the interest rate you pay are lower than inflation or your salary rise, you are in better position.
I took some loans for purchasing land and paid it in 7 years, On that period of time, the price of land doubled while my salary rose more than 50%. You should not be afraid of taking loans if you have two income sources in family and one alone is able to payback in worse case scenario.

You are correct, but if you find yourself in that situation and you don't have money to execute the contract, don't go and borrow money to execute the contract because such contracts usually take time before they can pay you the money assigned to that contract. If you don't receive the money for the contract on time, you will find it hard to repay your debt when the debt is due for repayment because the money for the contract that made you borrow money hasn't been paid to you. Just allow someone else who has enough money to take the contract so that you will not find yourself in difficult situations or trying to get money elsewhere to repay your debt so that it will attract extra interest.

@Richbased, I would have really do fine your naratives some worth problematic but yeah every gat to figure out what will work for him or probably do whatever they like, but I could say that one of the reasons why some people are improving in their lives than others is because they have chosen to to take advantage of what other peoples ignored. However, no one can ever force you in to collecting a loan it is choice to and not to collect a loan, collecting a loan can be good if the intention is to maximize profits or to influence life positively, no one should take a loan to do something meaningful for him or her self with so much negativity, their should be some certain high level of positivity towards your planning, I really think I have to say this, I was denied of admission in the university twice because there was no money as at then for me to go to school, on the third occasion I insisted after making several researches about undergraduate scholarships schemes within my jurisdiction, of which I trusted myself so much and I talked to my parents about it telling them that there wouldn't have been no better chances of me going to school that I wouldn't want to miss this third opportunity again, with so much positivity my dad took a loan with one of his landed property as a collateral and took a loan for me to clear up my acceptance fee and and school fee and keep the remaining one for myself while going to school, before the end of the first semester I  have already written three scholarships exams, my church started a scholarship scheme that year that was fortunate enough for me, and the two others was TOtal e&p undergraduates scholarship, and NLNG undergraduates scholarship, and my name got listed in the church and Total e&p undergraduates scholarships and the debt was cleared even before the due time and I went through school without stress.

I understand your point @Tmoonz on being positive but one of the reasons why most people finds their selves in some kind of unfortunate situations is because they didn't look at the other way round like if after being positive about something and at the end it didn't work in your favour.

Life is a risk and sometimes these risks takes us to our destination but we shouldn't underestimate the fact that we can also take this risks and things end up not going as planned that is why it is good to have that feeling should in a case where something doesn't work in our favour we can be able to handle such situation.

Inasmuch as a know education is a knowledge that every parents that have well-being of their children at heart can lease, sell or use their assets to sponsor their children to school because the child is also a good asset worth investing on such that he can become a better person tomorrow after acquiring education and become successful they can decide to replace those assets that their parents lost why seeking for a better future for their children.
If it is about education, it is something worth taking a loan to go to school inasmuch as the child is intelligent enough to know his aim while going to school and to focus and bring in his best to make sure he doesn't discontinue no matter the challenges they may face while studying.

Your story is a good one as you are lucky even though you may be smart and intelligent but however it is not a prerequisite to the reason why you got a scholarship and from there the debt your dad incurred on your behalf was settled, have you ever checked the other way round if had it been you didn't succeeded in getting the scholarship? Maybe your dad would have sold the land to repay the debt isn't it? And lost a valuable asset in the course of looking for a brighter future for you and it would have been a challenge to you to replace that asset when you finally become successful.

Debt management were really talked less about and it's really underrated because people think they can always have the capability to pay those debts without worrying to much.
But, as a person who live in a 3rd world country, I have experience being deep into debt for more than 3 years when I was still earning at the minimum wage. I can't help but I had to rely on this kind of debt:
It somehow help me to pay my debts on time and allow me more time to gather financial resources to pay the new debt accumulated. This has been the cycle until I finally get away with it and learned the hard way about the reality of debts. That gives me a lesson not only about debts, but to work my ass up double time to avoid from getting those debts back because of financial struggles.

sure, people can utilise the opportunity of loan without themselves in a bad situation. before we should take loan, there should be a concrete need for it, expecially a profitable business that gives you profit in a short or long term, depending on the loan duration. sothat you will be able to return the loan in due time and boost your credit score. I also have similar case with Tmoonz. there was this business that came to me back then to supply wood to a mini company, the person that has this contract doesn't have finance to run it, he introduced it to me and I opt in for a loan back then, and guest what I did the contract as fast as possible and made alot of profit and returned the borrowed money including the interest rate and I was left with %30 profit. so there are situation that needs to acquire loan but not taking it for what is necessary otherwise you get into a trouble and you will have a bad credit score.

it depends on the loan duration, if the loan permit 10years and above then there is need to take advantage of it at earlier stage before it becomes expensive expecially a volatile assets.

yea to be able to pay back such dept one needs to increase h/her job skill to be able to pay off such dept, there is no way a person can take a dept for education and be doing a minimal job to pay such money, rather h/she will have needed to acquire a higher paying job which he may have previously not had before, to be able to apply for such loan because acquiring a loan for education before looking for a higher paying job may sure way Puting him self I some kind of bad situation expecially when the desire work does not come as predicted.

why people exphasis much I'll-thought about dept in this thread is lack of proper use of dept. most people leave life above there earning they usually overspend there salary and go for loan. and most of this loan or dept taken is not use for business purpose but for consumption propose there by Puting themself in jeopardy or in a confused manner. sometimes the actual reason or goal for acquiring for loan has not been concluded, they spent it ahead of the porpos of loan and it causes setback, that is the reason they have  I'll-thought in dept.

I believe few of those ways to take advantage of such system with out abusing them or putting your self in a bad situation is as follow.

1. Having a source of income Most persons intend optioning for a loan without any means of paying back the loan in due time putting them in more danger when they could not pay back.

2. Having an existing investment or business When you have an existing business or investment who's aim and intension is to upgrade your investment or cash flow the loan will be of great help to increase your business growth by this you will be able to achieve it and even pay your Dept in due time because there is already an existing investment which with the help of the loan taken has upgrade the business or your investment into a higher level.

3. Having good intention or plan before optioning for a loan Most persons dont have any good intention when taking loans most people take loan to solve problem believing having the money back before the due loan date without doing any good thing to keep the money ready before due time or believing miracle will happen before the required date at the end they are been unable to pay back putting them into worst situation.

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

What's important thing people need to realize that if they don't need those things maybe they should stop to pursue it especially if they don't have funds to spend and also not sure if they can get a good result for their decisions made. To should engage on anything if they are fully prepared or already have funds to spent and they should never try to risk anything using their borrowed money since for sure everything will really fucked up if their expectation will never meet and this will lead them to a double lose since they need to pay the interest of their loaned amount and they also lose their money for what wrong decisions they do. And if they  think borrowing some funds again to cope up their payment then paid their loan according to the date they negotiate for the first borrower they better erase those thoughts since this will add up to their problems. A proper settlement to the lender for sure work and he provably give you a best set up so you could pay without getting more hardship in life. To avoid this situation we should better plan each decision we made and always have doubts to take loan so that we can get away on stress brought by this avoidable mistake.

I disagree with you on the area I bolded and it sounds discouraging to those that there only hope they can start up a small business is to option for a loan. One thing you should realized is that there is a different between optioning for a loan to invest or start up business and borrowing money for mere consumption/ things that won't generate money.
For it is better to start up something rather than doing nothing, we all know that life is full with risk, taking a bold step optioning for a loan to start up a business is not a bad one because you be blessed through it.
The point of sales (POS) business am doing well now is as a result of the money I borrowed to start it up I started with low amount that I borrowed I took the risk to do it because nobody was there to help but the loan I took help. So your adivse will be misleading to those that will want to option for a loan to start up something good for themselves.

Taking a long-term loan and using it to buy assets that will experience an increase, of course this will make us financially stable in the future, but we also have to see whether the interest offered is high or not because if the amount of interest we have to pay is very large, of course will make it difficult for us to pay it off, buying land will of course be very profitable for us because the price of the asset will continue to increase day by day, before we decide to take out a loan of course we must have thought about how to pay it off and never take out a loan if we can't finish it.

It all boils down to the kind of business that you want to start up with a loan. If it is a business that you need to rent a shop and buy goods into the shop for business, I will say that it is very risky to take a loan to startup such business, especially when you are new into the business. This is because there are some unforeseen challenges that might arise in the early stage that you might not be able to overcome, but it can be overcome gradually as time passes by.

This is why whenever anyone wants to start a business, that person must have an extra funds available which can stand as an emergency funds incase an ugly situation happens during the baby state of the business, that money will be used to pump into the business so that it does not collapse. If you take a loan to start up a business in which you rented a shop, how will you pay your shop rent when it expires and you are not even through with paying back your loan. You will end up packing up.

This is why one must think carefully on the kind of business in which he needs a loan for, and also consider how to grow the business and the threat associated to that business. So that you can easily payback your loan and your business is still running. Another thing is for you to have a job or means of income as a backup plan, before taking a loan to start up a business

Life it self is all about risk, for one to make it in life one needs to take some calculated risk. I understand the area you are talking about starting a small scale business  doesn't necessarily mean one must rent a shop before starting up business, you can start by Hawking on the street gradually as to time goes on you can now think of renting a shop by that time your business might have stand strong or grown to a higher level then you can think of expansion by renting a shop then.
There are many lucrative business that may not necessarily required renting a shop at first start expecially the country I came from.

Yes, having debts is not a very pleasant thing. But you never know what might happen in the future. I don't want to have debts, but if I need money for my own business, for example, I think I can go to the bank. There is a risk of losing some money and not making a profit. But there is an opportunity to earn a lot of money! I won't rule out this possibility. If you make the right calculations and take into account the risks, you can pay off your debt early and still do what you love.

Get to know the nature of loans so that we can make a decision to take them. Loans that are not consumptive will not provide any value and instead we are trying to add to the problem. It is the same as risking risk when taking out a loan and if the loan can be used well it will generate wealth from the capital used from the loan. It's different when talking about loans to make investment or trading plans and in my opinion that's not quite right, unless we have other financial sources to cover the monthly costs for the loan.

Bitcoin is very risky to invest using money that is not ours because it is possible that along the way we will see a correction process. In conditions like this we will be faced with problems if we don't have other sources of income, there is no problem taking a loan if we know how to solve it and don't add new problems.

Debt is strange. Getting the flashy thing immediately instead than waiting is attractive. But it makes you really exposed. Every credit purchase and loan is a bet. A gamble that you can pay, that your purchase won't depreciate, and that your income won't drop. You're in trouble if that goes wrong. What you owe becomes what you owe plus the ridiculous interest. You work to survive.

I'm not suggesting debt is always bad. But Is it necessary? Something with future returns? If not, chances are it's trap. Saving is the best play and most powerful. Saving regularly. Yes, it's less interesting now, but with cash, you're in control. You can get better bargains, walk away from bad ones, and control your destiny. Owing someone money is stressful.

Think beyond yourself. This debt mindset permeates everything. Doing so cripples nations. In pursuit of short-term gains, the future suffers.  We must rethink money and focus on long-term stability and solid foundations. That benefits everyone.

I agree with you that there is nothing wrong with taking a loan to start up a business or expand your existing business to get the goods you need in the area where you are running your business or to sort out a pressing issue. For instance, you can be expecting money in the next two months before you know what is happening an urgent emergency occurs, you can take a loan to solve the emergency. When the money you were expecting arrives, you can repay your debt. Some people are in debt not because they don't have the money to repay their debt, but because they find it very hard to repay their debt when they have money.

Loans arent that bad if you do really just that know on where it would really be applied or would really be used because if you do take up loans just for the sake on buying up something or
specifically, on trying out to buy your wants then this is the most dumb decision that you would really be making. Never ever consider on taking up some purchases with loan amounts and it would be
always better that you should really be contented on what you do have and never ever take up some loan just because you are liking something. Having some loans or debts because its been applied in
business then this is something that we can really say that it is really something worth but well not all people do have the same mindset.

Majority of us wont really be that minding that much about as long we are making money our job salary then we would really be that confident on taking up some loan until the time comes that you would
be suffering some debt problems and if you cant really be able to make yourself that get out then it would really be surely a devastating thing. This is why you should really be careful
on dealing with it and as much as possible you should really be avoiding it if its not really that needed.

The process of taking a loan to invest in Bitcoin is not a good idea unless you are planning for short term investment which will not still be possible unless there is another source of income that generates income for you but with the DCA strategy there is no need optioning for a loan, and it will still enable you to accumulate more Bitcoin weekly or monthly with the money that comes from your other income source and it will also help to keep reserve fund, emergency funds and float fund which will help you in hodling your Bitcoin investment for long term 4-10 years and above.

Its never really a good idea but its a dumb decision to take by an individual since you are not participating on a activities that can give you a sure profit and imagine what will happen to you once everything you do fails. For sure you are digging a hole that make your life became more miserable with that.

We should think about more wiser regarding on our finances especially on our investment made and never think about borrowing when in comes on investment but instead come with clean funds which you own so that there's no pressure will come afterwards and we will be fine if something bad happen on the amount we put up on some investment choices we made.

Aside from setting up our emergency funds this debt management is also important to consider and  take seriously by people since for having all this discipline for sure they can live a comfortable life and have good flow of their investment made especially with bitcoin.

There are many people who are managing their business with loans, everything is easy if you know the right strategy. In the commercial context, the term business loan refers to the purchase of goods and the payment of the price later. Many times it is difficult to get a loan if the buyer lacks financial stability or has difficulties. Organizations grant loans to their consumers subject to the terms of the purchase agreement. Companies that make loans to their consumers often employ a loan officer.

I don't think so, loan is good when you use it uprightly but bad when you you use it wrongly. The need or porpos for loan is to enhance quick and fast way of acquiring an important asset or solving a crucial problem when you are out of reserved or floats. or it can be used to add up to your reserved to solve a problem that is bigger than your reserved. Sometimes loan helps us acquire wealth which we couldn't have gotten so quick. So in summary loan is good when you invest it wisely, but when you are not yet ready to for the porpos of which you want to take loan don't even try it otherwise you may use it wrongly. People you said they do complain about taken loan and regret later are those that lack the understanding of a need to take a loan, or taken loan for unnecessary for consumption instead of business. Some might be a loan for a business which has not been properly studied if it will be profitable or not. Though in taking loan, we should apply caution in knowing the type of business we want to invest in before take a loan if not we would put ourselves in a tight Conner.

Don't say ill-word or have I'll-thought about loan. Surely people may have predicament on loan as a result of bad dept management, but that doesn't mean you have to discourage others. Life is all about luck and chances some have the opportunity to utilise it well while some didn't have the opportunity to utilise it well which the fault could either be bad management or lack of Focus. But that doesn't mean what happened to me A is liable to happens to mr B. your advice is a kind of misleading.

Dere you go again zanab247 who says dept will not allow you to grow well like other business? Like I said earlier it depends on what you want to use the loan for. Let me ask you, if you where give an opportunity to take a loan of $1000 to handle a contract that you will spend thesame $1000 and make a profit of $500 and return the initial capital and maybe a small interest of maybe %5 which is $1050 and you making a profit of $450 will you not do such business? Surely it depends on the type of business you do so stop generalising and discourage loan.

I don't think anybody's dream will be to option for a loan, but if the need arises I don't think is a bad option taking a loan as long as your intention is to increase your credit score or expand your existing business or to start up a small scale business. You may not be able to live  a comfortable life initially because there is a Dept on you that u need to clear up those thinking will come to your mind as human but that doesn't mean that you will not live long to enjoy your wealth, there are business men today that that are living comfortablely most of them started there business/investment from borrowed money low beginning and now most of them have business expansion all over.
So mate don't try to generalized it what doesn't work out for Mr A might work for Mr B depending on there loan intention my self is an example, the business am doing now is from the money i borrowed but  right now the dept is now things of the past and am living a good life . So one intention for optioning for a loan matters alot as long as it is been invested into that which will generate revenue.

I understand the fact about what you are stating but it depends on the kind of contract that is being given to you and the calibre of person or organization because my dad was awarded a contract by an oil company in my state before and  he was given a work order and the description of the quality they want the job to be then they reached an agreement that he would be paid after the job have been executed and inspected so he went and borrowed money from a cooperative organization and did the job perfectly so after the company paid him the agreed amount for the job they also added a thank you bonus (extra money) for doing the job to their standards he then repaid the cooperative he borrowed the money from and had some good profits left with him.

What am trying to say here is that you can't just accept a contract that you don't know the capacity of the company or the individual awarding the contract to you and when doing a job for a company or an organization you have to do it to the best standard so that if such a contract becomes available in the future again they can still award same contract to you.

Another thing you need to understand is that life is about risks so when you see some risk that there is every possibility of making profits if you borrow money, do it, if it works you claim the glory and if it also doesn't work you bear the brunt and move on even if it will be hard for you to recover at that material time. If you don't take some certain risks in life you may be stagnant and may not experience any positive growth in life.

I have seen so many replies implying that taken a loan is bad I will like to say that it is normal for anyone to express him or herself but generally, there are different kinds of loan and different reasons why people takes loan. But however, everyone has to stick to whatever you feel will work for you. To me, what is obtainable is that out of 100% of people that are involved in loan 80% are successful.

People misunderstand debt to me and I guess that is because they use it wrongly, taking debt to use for personal needs isn't a very good idea especially if you don't have a job or a means to pay back and why I say this is because money is a liability and taking debt is already having an extra expense that you need to cater for, so I preferably like to take loan to use for business purposes or maybe to solve quick problems and I like to also have a back up plan when I take loan

No one says loans are bad, as long as the loans can be used more productively, however, people often think that loans will only cause problems, even though loans are unproductive in nature. If the loan is taken only to fulfill a lifestyle, that is a problem, but as long as the loan is taken to increase capital in the business, it is not a problem. People must have the courage to get out of their comfort zone and if there is no capital, the steps we need to take are looking for financial sources.

Now there is quite a lot of capital financing in the form of loans and when we want to develop our business we can take the opportunity. The most important thing is that before taking out a loan, we know the potential of the business we are running so that the burden of financing the loan does not become a burden. When this can be controlled, productive loans do not become a problem and can actually help us to develop our business to be more successful.

Actually this is indeeed true because on the time that you hare really that making some bad decision on where you would really be making use of these loans then you would really be having that differentiation among two.

When it comes to debt management then of course you would really be needing up that proper consideration on which it would really be just that common sense on where you would really be needing up to put up focus and considerations when taking up some loan on which it would really be worthy on the time that you would really be considering on putting it up on some investment or business rather than on buying up your wants
or something purchasing on shit things that you do like.

You would really be needing up to be wise for you to be able to avoid those possible problems or issues on which you are putting up yourself on potential trouble.
Although its not bad to buy up your wants but it should really be in controlled manner.

Must you take a loan to become successful? Loan hinders a lot of people from achieving their goals in life because instead of thinking of making good use of your money on future investments, you will end up repaying loans that you took in the past. I am not trying to say that loan is bad because I have seen someone who took a huge loan to build a house and reached and understanding with the lender that he will be paying the loan on monthly basis till he clears up the loan. Yes he built the house and moved in with his family but he regretted taking the loan because he barely feed his family because about 90% of his income was used in repaying back the loan regularly. So you can imagine depriving yourself of comfort just because you have a target and you take a loan in the process.

If you are taking a loan for an appropriate business type then it's okay and with borrowed money you can earn a huge amount of money and can also return the borrowed money on time. But if you are taking a loan for gambling, and other useless activities then you will be in loss and also you will never become able to return this dabt.

You should share the idea of a business with your family and if they give you a positive review then you can take a loan to continue this business but if they are not cooperating then I think you should avoid taking loans because family support matters a lot.

management of business it is based on your own understanding some persons as you say taking loan to support their business it is based on their own way of understanding the strategies somebody can manage it investment without taking a loan from anyone because it is a personal decision I cannot decide on any businessman or woman to do concerning it business so I believe that business is based on plans

What I think not fine there is if you are a starting up business and you take a loan to build your plans since this is really action decision since imagine how big the risk you will trying to get especially that you don't know who are your markets and you are trying to figure out on how to introduce your business to a lot of people so for sure there's a higher chance that you will fail for this and it will be more bad if there's a loan that you need to take care on.

Sometimes our family members doesn't know how to run a good business so sometimes maybe we need a good business coach with this that can guide us and give advice on what are the best thing to do since for sure those people can lead us to became more successful since they are the one who's capable to teach us about proper way handling of our debt and how to handle our business right especially if we face a heavy challenges in life.

The man that took a loan to build a house is not a wise man, knowing that he doesn't have a better option to back up without struggling, let me ask what kind of job was he doing at first that made him borrow to build a house?. He took a wrong decision to option for a loan when he doesn't have a strong back up or a good paying job no enough cash flow in such case what do you think will happen to such person.
Instead what he should have done was to use the money since he wanted to build a house he would have build a rented apartment that would have been giving him income back probably monthly or yearly which should have help him pay off his dept without struggling much with his family, or probably invest into what will fetch him more money as time progress.

Loan shouldn't be taken to build a house when you dont have a good cash flow instead you invest into Bitcoin or even land which appreciate value in time coming or business a lucrative one that will generate income for him.

Optioning for a loan is beneficial if we use it strategically in what that will generate more cash flow, taking loan to invest in business is different from using it for consumption purpose or a none income producing asset .

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset. When u are able to understand the difference between and asset and liability, them you use your loan money to acquire  an asset instead of liability that when you will get to know the benefit of taking loan.The man u just cited , acquired liability in form of an asset. Assuming the man decided to put the house for rentage , automatically he would have had an asset. Just like taking loan to get  a car for your personal use or to buy shitcoin. All these are liabilities in form of asset.

Your naratives are short sighted and you have failed to understood my point I was only trying to say that out of 100 percent of people that took loan in real life 80 percent made success from it , you don't have to be in a hurry to forget that it will take the man a more longer period of time before saving up to build the house and their must be an increase in the cost of material goods for the building as per how long it could have took the man to build that house it is a good that he is paying back it will only take time  but definitely he is going completely paying his debt and the reason why he took the laon was accomplished, any ways taken loan is not for everybody it is only for the large hearted who are much ready enough to do that. Any one can do whatever they like.

He was a senior civil servant in government so his income comes regularly but I don't understand your point of saying that he doesn't have better option of backing up his struggling or are you talking about having another source of income apart from his civil service work?

Are you being serious right now? How can you refer to a house as a liability in form of an asset like I don't understand. If he decides to sell the house so you think he can't sell it more than the amount he used in building it? I think you need proper understanding about asset and liability.

You have a point actually but did he really need to go through such discomfort simply because he wants to meet up a target? like the family was suffering as a result of the decision he took even though they have a home of their own now.

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Trying to be too comfortable in your present state is one of the reasons why some people are not growing or making an improvement in their liife, there is nothing absolutely wrong in making a future plan as to this regards, the man had a target and worked towards and it was achieved which is the most important thing, that's even reminds me your naratives was exactly that of my father's experience when he was in active service now he is a retiree, yes it wasn't easy but we managed and the target was achieved.

Home loans and other loans taken for personal lifestyle growth can be beneficial just like how you described it because the prices of properties or material goods tend to increase over time due to inflation, and a loan can save you from that as you get to own your house, car, or anything you are taking the loan for. However, managing these loans is way more difficult than a lot of people might think.

If someone is using an official channel for the loan such as a bank, they will need to be a salaried person or a business owner. Banks don't give loans to people having no proper source of income which is better because those who aren't earning money or have any job or business would barely be able to manage debts in a good way because they won't be able to repay them on time.

So even if such a person wants to own a house to get rid of rent, have a car to drive around without any hassle, or get something that they need in their life, loans aren't the way for them to go because they will first need to build the base to be able to make use of this feature towards upgradation.

Pardon me if I'll step in but your discussion are interesting for me.
They say that don't stay on your comfort zone so that you're going to improve. It's true that comfort is addictive but if it's about with such situations that will help you to improve your life with so many things including debt management and financial knowledge, you need to make a choice now or you'd suffer tomorrow. It is so true that one won't make it and won't grow if he stays where he's comfortable but I can't blame them to that because even I, I'd choose comfort than any other challenge.

There is a lot of misconception about loans. While the responsible ones are the people that you're describing. But it's not going to stop for those people that are taking loans for their leisure and pleasures. They think that they'd earn the money soon and that's fine to take an advance with some interest on it.

Sometimes we throw out some of the various terms without really putting them in a very good context in terms of how money might be used and whether it might be considered a productive asset or a consumptive asset, or whether it might appreciate or depreciate in value relative to other assets and/or relative to cash - including that there can be periods of time that some assets or cash perform well, and other times that they do not perform very well.

Of course, something like a house can involve a lot of liabilities in terms of maintenance costs, taxes and other possible fees - including potentially having to insure it because of its physicality - while locations make differences in regards to these matters too, including the kind of neighborhood that it is in that could unexpectedly end up affecting its value in one direction or another based on what others are doing in the neighborhood.

Surely, a house has a utility value that comes from being able to live in it and having some autonomy over it that may well not come from a rental situation, yet at the same time houses do not always go up in value, including problems with macro dynamics that involve bubbles and even sometimes some of the seeming manipulations that might happen in housing - so surely in all cases, we cannot necessarily consider housing to be an appreciating asset or even a desirable asset in some circumstances in which markets might get perverted based on political or economic dynamics.... yet that does not necessarily mean property ownership is not a good thing or that it would not be a good idea to borrow in order to acquire and/or accumulate property... even though there are possibilities of getting burned on it.

We have a lot of examples in recent times in which folks who are not able to get loans might never be able to save enough to buy a house, and similar dynamics have happened historically, and houses might not be the ONLY kind of higher ticket item in which there are advantages to use debt to get it earlier rather than later, even if there could be some ways in which the house might not really be appreciating in value greater than if they money had been invested elsewhere - even with buying a car, there could be some questions about the car being a depreciating asset, yet there could also be ways that the car helps to increase income and/or productivity in such ways that the car mostly ends up paying for itself - which truly is not always the case with all kinds of cars that people buy, including sometimes they buy extra cars that might not have much if any utility value.

Even if someone is being completely responsible still the outcome of their activities are not in their hands and also any business might bust at any time and that kind of era we are living in while loans have to be paid at any cost that is why we should not take loans beyond our tolerance level or it could made our life as a hell for sure.

Actually, I think everyone definitely wants a comfortable life, therefore they look for what makes them comfortable. Also, I don't think it's wrong if we stick with things that make us comfortable, it's just that we have to be able to balance whether the comfort we feel allows us to progress or not. For example, if we are comfortable with the job we have, of course that's not a problem. What is a problem in my opinion is that those who are comfortable are in the wrong zone, such as spending time in vain every day, not being able to produce anything by doing things that make them comfortable, that's which is a problem and of course it is something that must be addressed.
When we are in a comfort zone, I think we have to be able to see first whether this comfort zone can produce results or not, because if it doesn't produce results then we should go out and look for other comforts that can produce something good like money. If we are trapped in a comfort zone that doesn't produce anything, it will only get us into trouble, such as having no income which could make us borrow money, but we don't know where we can get the money to pay for it.

I really love the points you have made  here more especially in the aspect of a house involving alot of liabilities which  is quite right and many will end up borrowing money to acquire liabilities. Even a car can also be an asset and also a liability, if you acquire a car for your personal use and you are not using it for any business that it will generate income them the car is a liability. You can also buy a car and be using it for transportation business ,automatically is generating income which makes it an asset. So am of the opinion that if you take loans ,use the money to acquire asset and not liabilities.

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article (https://www.superyachtfan.com/yacht/harle/owner/) Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

I am also interested in this discussion going on here because everyone is open to knowledge because there are things in life we just feel that we are doing it rightly but in an actual sense we are wrong. Now coming to the area of building a house for comfort does it mean we should instead make investments instead of building houses that will stand as a liability due to the cost of maintenance? Or while making investments we shouldn't also need to live a comfortable life? We shouldn't buy cars or build houses and focus more on making productive investments even when we become successful investors?

Talking about Michael Saylor, we all know that he is a lover of luxury and a successful investor so the cost of maintaining his assets will not be a problem for him because he already got the money to take care of those things. Even though he charters out his yachts will they not go through maintenance from time to time? If we keep looking towards things that will bring about  only assets  to us and not liability that means we may end up not enjoying life at all after all we all have limited time on earth here so while we are also making investments that will give us a better future, there need to live a comfortable and enjoyable lifestyle.

You Misunderstood the whole point nobody is saying you should not build a house or buy a car but using borrowed money because house is not a good investment, when you take loan you ought to invest it wisely because you will still pay back so to avoid story in the long run, borrowed money should be used to acquire asset and not liabilities that are in form of asset. You also talk about comfortable live ,no right thinking man will take loan in order to live a comfortable life. You should be talking about comfortable life with your hard earned money .it is  very unwise to take loan and be talking of luxurious life. Michael saylor you said is a successful investor which means his income is far greater than his expenses and his assets are greater than his liabilities. so the luxurious life ,comfortable life, being able to maintain his assets all of this are expenses which doesn't equate his income.

No don't misquote me all am saying is that since there are assets that are in form of liability that does it mean we should not acquire them even when we have the money and resources to take care of them? And you saying house is not a good investment is a wrong perception like how can you really say that? Those who build houses for real estate businesses can you also tell them that house is not a good investment? You should have said that it is dependent on what you want to use the house for but I don't see any reason why anyone will say that house is not a good investment even though it may depreciate in value if not taken care of or well maintained.
    To clear your doubts, house is a good investment because if well maintained it's value will increase as time goes on and again if you build a house you have given yourself and your family a lifetime shelter such that no matter where ever they go to they will know they have a home to come back to and again your offspring can inherit the house when you are no longer there so i see no reason why you said house is not a good investment.

I am not saying you shouldn't buy a house or those liabilities that are in form of asset ,you can buy or build house if you have the money but what am saying is you shouldn't take loan to get them ,rather you can take loan to get an asset them the money you generate from the asset you can use it to build house, cars etc after paying the loan. house not been a good investment,well I shouldn't have use the word investment ,what am saying is those that take loan to build family house thinking is an asset. Simply put ,an asset is anything that put money to your pocket while liabilities are those things that take money from your pocket. Though there are liabilities that looks like asset which they are not, so taking loan to acquire them to me not a good idea because so many people have been complain that taking of loan is not good which I believe that they have been using the loan money to acquire liabilities that they think are asset, which makes it impossible for them to be able to pay back the loan.

Be honest about financial independence. Not simply cash hoarding. Spending wisely, spreading it out, and knowing when to spend and when to save are important. Michael Saylor has everything: yachts, aircraft, etc. He's good at his game. But for regular Joes, it's different. We must combine enjoying life now and planning for the future

Homes and cars aren't foolish moves by default. When and what you do matter. If your luxury car costs you everything in repairs, it's a liability and a burden. If handled well, it may be a pleasure and a valuable asset. Even rich guys can fail. Saylor may not care about maintenance because he's rich. Investing in luxury without a solid foundation is like jumping off a cliff without a strategy for most people

You don't need Saylor's billions to succeed. Focus on growing investments to fund nicer goods. To avoid choosing between today's happiness and tomorrow's security. Building a joyful, financially secure life. Simple: make smart choices and make your money work for you

That is why we choose which kind of debt we are up into whether it is a good or a bad debt we can personally decide. The only problem is that majority of people use bad debt to fund things they don't even need I mean those "wants" are the worst liability for me because I've been there before but then I realize I had to change my mindset or else I will be having a never ending debt.

from my own understanding and my reasoning to be a debtor it's not really good and it damages the image of the person so that is why I don't like to inform myself owing someone because I know something that it will result tomorrow, owing a somebody a something that have to do with the this regard in Society because when you are owing someone the person would like respect on you and they will also this regard you when you have not refund him or her money when you are not supposed to make a refund

Taking loans or borrowing to fund unnecessary stuffs is not a good idea anyone who does that should think twice and retrace their steps, it would be more profitable if you take loans to invest in a good business, atleast you could make profits and clear your debts and not on using borrowed money to fund unnecessary items or lavish lifestyle, I attracts embarrassments when you're unable to pay up.

 Just like my dad use to advise my mom when she's thinking of taking loans from friends , he'll always say taking debts is not good, whether the lender is your friend or close family, he also mentioned that a debtor is like a slave to the lender and the person who lends could treat you bad or embarrass you in public, which is the damage of image mentioned by George John.

 I've witnessed people quarrel and fight over an unpaid debt and it's so embarrassing and I won't like to see myself in such situations therefore I'll always avoid anything that could make me be in debt to anyone and even when I'm in debt, I try to pay off on time so as to avoid unnecessary embarrassment that could've been prevented.

It's true that being in a business is like a hit or miss. But I believe those that take loans for businesses, it's not literally for start but more of expansion and continuity of what they have started. Because they've seen that the potential is happening and growing, but because of having no one on their wing that has huge funds to fund their continuity and scaling, they are needing to take a loan.
That's the gamble that they're doing although not literally a gamble but the risk is still there despite that they're seeing the growth of it. What many don't know is they have to take loans only if they are really in need and they are generating money. Not to take a loan for starting a business, that's actually the bust there.
You're putting up something to your head that will crack it without thinking. You have to do better if it's about the loans because the money that you're going to pay there will come from your hard work and sum with it the interest that's gonna give you a suck in the emotion when you've realized how much you have just paid for that.

I have seen many people who take out loans for unnecessary work and then face the risk of running out of money and not being able to repay the loan properly. It is true that if it is not necessary to change their mentality they will never be able to get out of this debt problem. He expects that the loan given by the bank along with interest will be returned on time. If it is not returned in time then the risk that arises.

I agree with what you said, in my opinion owning a car with classic value can be considered an asset, as time goes by of course cars or other property with classic value will have a higher price. Also, by owning a yacht, of course we can use it to rent it out to make a profit and of course that's not a bad thing either. Having perhaps more than one house can already be considered an asset, because of course not only that, its value can also increase, especially since the house is in a strategic location.

Even though building a house or owning a house requires maintenance costs, that doesn't mean we don't have to have a house, because a house is one of the things that must be considered and must be owned. Also I think if you compare a house with a car or anything else, the house is still the most important thing. However, it is also not recommended to take out a loan to enjoy life, of course if you want to take out a loan you have to do the right thing. Having a good mindset is a must, taking out a loan is no problem if it is used for the right things. If you do take out a loan then it must be used for something that can generate a profit, but if it is to make your life comfortable it doesn't seem like it's really mandatory.

Debt or borrowing is not looked upon favorably, those who can manage the loan process properly can certainly reach their goals faster than others. I am not advocating debt but sharing some ideas on how to manage debt and pay it off faster. A borrower must be prudent. Especially in all work related to money.

A debt holder must first determine why he takes the loan. It should be carefully observed whether there is any logical reason behind it or not. In many cases I see people who don't need loans but are still taking loans. In such a situation, you should avoid lending.

I would like to focus on a few points (https://fastercapital.com/content/Debt-Financing---What-You-Need-To-Know-Before-You-Go-Any-Further.html).
https://talkimg.com/images/2024/05/13/1Q6Z2.png

# To manage loans properly, a borrower must monitor his finances against his loans. The total loan and interest rate must be determined. If there is any other debt it should also be monitored.

# Before taking a loan a borrower should consider the type of loan to take. Some loans have high interest rates while others are very suitable according to the customer's situation.

# It is important to plan the loan financing in advance. Because loan money should never be used beyond the plan. This will increase the debt burden.

# Borrower must show awareness of every expenditure.
 
# In addition, the borrower should also be able to budget the loan amount. Decisions should be taken after observing what is necessary and what is not necessary at that time.

If loan taker manages their loan by following the points I have mentioned along with others then there will be more benefits in loan management.

The truth of the matter is that as time goes on, some things tagged as a liability will become an asset. Simply because people find them more interesting than the new ones or find more special features in them just classic is Just the right description. Those classic car can appreciate in value as time goes on. Though the maintenance cost is another thing but it is necessary to have more Investment in digital asset like bitcoin than having alot on physical assets that may turn to a liability or may add in value in due time. Having a major asset in bitcoin saves us from much tax and maintenance cost because expensive or luxury items need enough capital to maintain them, but bitcoin Investment don't need any of them. So in my sudjestion luxury items like cars need not to be much to have but having 1 and investing all other amount in bitcoin. other assets aside bitcoin is house and land because those are also volatile assets.

That's right but people can't be in their control all their time and especially when when they took money in their hands and the chances of being spent them on things they wanted is higher than they are in need. Now back to topic there is always risk when it comes to money making whether its business or investment but the conservative approach can minimize the risk part.Let's say one is having a successful profit making restaurant now they want to expand it for that they need loan which is fine but taking loan to expand it to 5 is huge risky while taking loan to open one by one is the conservative.

Its important to have a proper study on their target markets so that they will not step into more risky situation since expansion doesn't guarantee any success that's why they need to study it will and don't do any aggressive approach especially for their growth since there maybe a heavy complication will happen to it. That's why sometimes I agree that it need to open up one by one especially if the money used is loaned amount so there's no total destruction of business will happen if there's unfortunate situation will occur. But if they believe that they have a solid business model and want to expand it more faster then maybe they should try to franchise it and offer it to aspiring businessmen since from that they can get away with loans and can properly manage their finances but as well they would have a great sales increase by help of those people who want to franchise their business.

A debt as per taking loans is not a bad idea or initiative it depends on your purpose of collecting that loan. I see mainly two reasons for taking loans, one for emergency and the other for investment purposes. Do we know the wealthy people are always in debt, not that they don't have more than enough to do that which they want but they prefer taking loans to do such. The wealthy people usually have their money in shares or stocks other than in banks, so imagine if they would want to engage in a new kind of investment which means they would have to sell parts of that stocks just to invest which has automatically reduced their profits over the years and I do not see it as the perfect choice.

Why most people are usually indebted and becomes a slave likely as what you said, is because they have no source to repay back or in a way trying to be impressive and portray what they not.

There's a less risky approach on it, as you've said that can be minimized. But for a restaurant business as an example, expanding to 5 branches with a loan depends on how huge the size of those branches. I wouldn't judge it quickly when the details aren't complete and that's why there's an assessment on doing it. But as we're talking about the safer approach, the best thing to do is to start with one branch first as your next branch to setup before doing all of it at once. Because when you take a loan and you're doing it all at once, you've got to be brave doing that.
But being brave won't be enough if you haven't planned it all along because you have to minimize the risk and the expenses that you're going to get isn't going be taken from other people but only from you and also you'll be the one to pay for it.

Typically, those loans that have high interests are the ones that will give you easy and quicker process. But in the long run, you'll realize that you should have taken it and that's going to be a huge problem to you when the interest are compounding when you skip some of it but that only means you're irresponsible when you experience that.

Actually the only time something that is seen as liability will turn to an asset is dependent on what it is being used for like from the example about buying a house or building it from origin, even though you have acquired a lot of wealth from your investments, spending money on luxury should not be a prerequisite of people to know that you are a successful person except you acquire those luxury for business purposes like when you buy a house and you already own one you can actually use the one you bought for rents such that it will be bringing returns for you monthly or annually as the case may be instead of answering that you have assets scattered abroad but none is bringing dividends to you. The reference you made about cars is good but to me car is more of liability than an asset because you can buy a car today and crash the car or better still the cost of maintaining a luxurious car is much. And car doesn't appreciate because as times goes the value depreciates.

Bitcoin investment is good of a truth but after you have acquired all the wealth you want wouldn't you seek for comfort as well or will you keep holding till eternity? Obviously not so as we invest in Bitcoin we also seek for pleasure when we have met our investments target because certainly every investor have a target.

Bravo on your ideas here, you really said my mind here. I have seen some people acquire a lot of wealth but never had time for pleasure till their grave and the children they kept those wealth for larvish everything without thinking about the efforts their father put in place to make an easy way for them, this is why combining enjoyment and planning for the future is good just like you said, you can't acquire all the wealth without making out time to have fun and enjoy yourself to the fullest after all we only have one life to live.

You're actually right about Michael Saylor because instead of him to maintain some of the luxury he acquired it will even be better for him to acquire new ones instead maintaining the old ones when they are not productive. Growing one's investment to fund or acquire other life valuables is also good.

Debt management is not an easy thing to do, it requires years of experience, especially if someone is taking a loan to invest with it because you can't just think that you will buy a property with the loan that you will sell at a higher price in the future, pay the debt and keep the profit, that isn't how it works and things aren't as easy as they might seem when you are just talking about them. There are certain things one needs to think about before taking such a step.

A well-managed loan can make someone a millionaire, and bad management of debt can make a millionaire become homeless, that is how serious this is and some people think it is as easy as drinking water, you file an application, take the loan, do some business and investment and repay the loan, that is easy only when we say it.

I would imagine that sometimes people might not be doing very proper accounting when they are generally putting various kinds of properties into boxes, because many times they will fit in both categories, and sometimes they will have more outweighing on one side versus the other, and that is not necessarily determined by its category but instead determined by the specifics of that particular piece of property.  If you have a house, but you also have a loan against the house, you likely have some ideas of its present valuation, and you project its future valuation based on certain attributes of the house including location, but there could be aspect of your maintenance and/or your improvements along the way or things that happen with the surrounding houses that affect its value.   If you are planning on living in the house for 30 years or more, then maybe you might not care about all of the details, even though you could well be affected by valuations at various points in terms of your paying off your loan or if you want to get further loans against it, and surely taxes can be affected by both valuation and by location.. and the same is true with decisions regarding whether to insure it and how much to insure it for, which also costs money with physical assets, and even if you choose not to insure it, then you are engaging in a kind of self-insurance and/or gambling that may or may not be justifiable. 

We also cannot always know if it ends up being a good place to put your value, since the house's physicality surely has liablity attributes to it, especially if after a few years, you want to move, or need to move to another location, then surely the house might be considered a liability - especially on a short timeline the market value might not have had ended up moving in your favor.


Sure there can be a lot of advantages in having the non-physicality of a digital asset, and that seems to be a considerable advantage of bitcoin over gold, even though many times you hear the gold bugs arguing the opposite, and for sure,  not all digital assets are the same either, so there could be some pretty shitty digitial assets, but there can be some decently shitty digital assets that are pumped in the short-term and may even have decently long periods of outperforming the dollar and perhaps even outperforming a large number of traditional investment assets, yet there are still going to be needs to exercise some precautions in terms of how to valuate digital assets outside of bitcoin.


It seems that any of us who have identified bitcoin as a great place to put our money are going to be handsomely rewarded for such, yet like you suggest, we still  have to consider our allocations, and it would be a bit much to keep all of our value in just this one asset, even if we recognize it as a great place to be.

Sometimes where we are, where we want to be and where we end up getting to can be quite different questions, since the situation regarding how to focus will partly depend upon from where we are starting, and if we come to bitcoin and we already have a bunch of other assets (and cash) and even debt, we may well want to increase our exposure to bitcoin, but we still might not suddenly change it, but instead weigh some of the pluses and minuses of having those other forms of assets, cash and debt and figure out how to include bitcoin into the mix and to increase our allocation into bitcoin - and frequently with bitcoin newbies, I will suggest trying to figure out some kind of a way to target 5% to 25% into bitcoin, and even if such newbie figures out his/her own particular target and then reaches it within 6 months to a year, the story may well not be over in terms of either needs to reassess if a new target might be needed or some new practice in the event that bitcoin's performance might well end up skewing the bitcoin investment to the upside, so then there could come questions about reallocating, if BTC might end up growing in value way faster than the other assets/currencies that are held.   

In late 2014, I had thought that a 10% allocation in bitcoin was good enough, but since BTC prices stayed so low during 2015, I ended up getting up to 13.5% allocation into bitcoin, but then bitcoin's growth after that had caused my allocation to get into the upper 80%s drop back to the mid 40%s and currently I may well be around 75% or something like that, but there can be questions about whether to reallocate or not or to let your winners ride (such as bitcoin, if it happens again?) and those might not be easy decisions to make in terms of how much of your wealth you might have into bitcoin and how you ended up getting it there (by investing into it or did it come through BTC price appreciation that ended up playing out way greater than your other assets).

Each of us has to make these various kinds of allocation decisions, and hopefully we are not rushing into such decisions, even though sometimes we might feel that we need to make reallocation decision and carry them out, and we could have some timeline pressures (or guidelines) that we set upon ourselves when we are making changes and how we go about employing such changes that we deem to be appropriate to our situation.

Yes, most likely it will only happen when they are able to manage and turn over the loan money properly, but still we can't say that it will really guarantee that you will be able to succeed and become a millionaire, if that is a certainty then it definitely is. many people do it and achieve success, but the fact is? Yes, not everyone is able to manage their loan money well. I think it is a fact that money is everything, but if you are not able to organize and manage that money then it is not impossible that this money could trigger various disasters.

In fact, it is not recommended to invest with borrowed money, one of the reasons is because there is no guarantee that involvement in investment will always make you successful in achieving profits. We cannot forget another fact that exists in the world of investment, namely the consequences of risks that are actually not can never be avoided altogether. This means that you have to really understand how investing actually works, don't just think about the profit opportunities, because it's not uncommon to see investors who end up in a downturn where they actually experience losses, especially if you do it using borrowed money which is indirectly certain. You will feel some unusual pressure because you have to return the money, meaning you have to really make sure that you will always be able to make a profit in the investment you make while on the other hand the possibility of risk could continue to lurk you, meaning you have to really Do a lot of careful consideration before finally taking out a loan.

Is it possible to be absolutely debt free? I doubt that. I quite agree with your submission but to some extent, some times debt becomes unavoidable not because we don't plan or make savings but simply due to circumstances that probably exceed our budget. No one will like to be addressed as a debtor if they have the means to have it in the first place. Yes, I know about making reservation savings for emergency cases too but some emergency consume more than we saved depending on the severity of the case and this will definitely lead to debt. Avoiding debt by whatever means is a good practice but it turns out to be last option sometimes.


This sounds easy to our ears without realizing that it doesn't always work out as plan. Majority of people would have been practicing this method if it is easier as we portray it. Being successful in business or investment is not just about management (thou it is the major factor) but sometimes luck plays important role too. You can have a good management plan and things might not work out as expected. I don't think obtaining loan for business or investment is a good idea in the first place.

In a long run the house can also serve as an asset if the owner decided to rent it out, it can serve as a real estate Investment even if it not built in a good location I believe there are people that will want to park in since all fingers are not equal.

House can also be consider as an asset when it been rented out.
House is thing that appreciate value when rented out what the owner just need to do is to keep some cash aside probably at the end of the year for maintenance since it is giving the owner some cool cash at the end of the month or year and it will also be from year to year since it is been properly maintain unless it been affected by fire outbreak.

I see a lot of wisdom in your opinion because literally, there are old things that people finds more value than the new ones because most of the things they are producing now is of low and inferior quality regardless of the fact that they are costly. There are old things that you can still find valuable in some people's possession despite how old those things have been in their possession. In my country, I went to the house of a doctor and found a circuit breaker in his electrical switch and from my findings this circuit breaker have been there for over 30 years and each time there is a fault in the electrical connection of the building the circuit breaker automatically turns off in order to prevent severe damage and i have made attempts to purchase that same circuit breaker in the market but to no avail because the ones I saw was of inferior quality such that if there is a fault it will trip off but the circuit breaker will get spoilt and you will need to get a new one unlike that doctor's own that have stayed for over 30 years so imagine such an item if he decides to sell it how much it is gonna worth because he told me that someone offered a mouthwatering amount of money for him to sell the circuit breaker but he declined. So definitely some things that looks like a liability can turn to an asset in the future depending on how you maintain and protect those things.


If it is about house it can be volatile depending on your maintenance level because if you don't give it a proper maintenance it can lose value in the future but you see land, I have never seen anyone sell a land at a lost price that is a price lesser than the one he bought it with except they sold it at a distress rate, maybe the person finds him/her self in a very difficult situations that they need money urgently then they can decide to cut the price in other to sell it at a cheap price in order to attend to their immediate needs.

However, for now bitcoin investment is the best anyone can think of because it gives you control over your holdings, you don't make arguments with anyone, you can't sell at a distress rate inasmuch as you are hodling for long term, the price appreciates even when a Dip happens it still comes back and continue to skyrocket.

borrowing money for investment purposes should not be an excuse for taking a loan but there are some investments that you have done a background checks that the investment will yield good profits in the short run such that you can take a loan to finance that investment knowing fully well that if the investment doesn't work according to your plan you can sort out your debts with your income if you have a regular source of income. Business is a risk and except you have become successful in your field of business such that you now have the capital to finance other businesses or investments, businessmen/women always take loans to advance their business to greater level so far as it is a profitable business that the profits can take care of the loan and you also have some left over for yourself.

Of a truth every average person need to live without debts but even when we try to stay out of debts sometimes we can't help it anymore but any debtor should have the mindset of repayment and before anyone should take a loan they first need to make sure they have a source of setting their debts as at when due.

Basically, we should make decisions with a cool head and not rush. Taking decisions hastily only allows for actions that may be at great risk, such as poor money management. If we can't manage our finances well, perhaps what will happen is continued shortages and shortages because unmonitored and uncontrolled expenses are caused by not having good money management, apart from that, when finances are in disarray and we are at a point where financial chaos is possible We have to borrow money, and this happens because poor money management results in spending that is not considered or making decisions without considering it first.

We must be able to make changes that lead to the better, such as by managing money that we don't have which results in less stressful expenses. From there, we must be able to think about establishing discipline in managing finances well, so that there are no unnecessary expenses that trigger money loans.

What has been conveyed is true, I would like to add that where in this life we must be grateful for whatever conditions we face, thus we are fortified from all desires that are not prioritized, but if the situation is urgent of course we find a solution by borrowing or owing to other parties, but it would be nice for us to look for a loan if there is an agreement to increase the interest even though we can pay more than lent for an amount not specified at the beginning of the loan.

Considering that investment or business is something with uncertain profits, of course taking out a loan to run a business or investment is not a good idea. but sometimes we need to be brave enough to take risks, such as with business, of course, when we are sure that we have prepared everything and have considered everything to start a business, but still have problems with finances, there are people who are like that and dare to take risks, but of course they do. This must also be considered first. If you do this but don't consider it, it's the same as hoping for a miracle to happen.

What you say is correct, success is not measured only by management, but sometimes luck plays a role here. But don't expect us to do it continuously without considering the actions we will take, so that we only depend on luck, that's not true.

I don't think so. no matter what the case may be, a house is a volatile assets though the house may be outdated and looks warn out in the future but the fact still remain that the value of a house surely depends on land , area or location it is situated at. for example if a person bough a land and build house in a location close to the central capital of a state/city or any under developed area, maybe he bought the land at a price of $5k and build a house of $15k in the year 1990, as of today2024 the house in that land may worth nothing but civilization has met the house, so surely who ever bought the house is buying it due to location which is now civilize. the house can be bought at $100k or more, and can be demolished for another project that will attract business. so something house is not the asset but land is the assets. except is a kind of situation where the hose can be manageable in the Future like some house that has maintained it value for decades due to high standards material. even if the house is not sold and it's used for rentage, it will still be expensive because the house is situated in a civilized and a business oriented area. if the house was also used as a collateral for a loan, if the duration of the loan is properly calculated in interval of some years, you may discover that the interest rate of that loan may not be able to claim the house on the collateral agreement. because the value added to that house or land is above the interest rate. so sometimes such situation the house can Equally be sold and pay off outstanding loan and use the remaining to find a mini portable place which a person can leave comfortable expecially those who get bankrupt by the Level of the commitment on loan. so invariably house is an volatile asset in which ever way we see it.

when am talking about a digital asset, bitcoin is the focal point not generalising all digital asset. aside bitcoin I don't see any reasonable digital asset for now, bitcoin is the best, most other form of online digital asset looks like a gambling to me of course you know what I mean. when talking about a digital asset we should think of an asset that will last for decades with higher volatility in return and not some sort of gambling assets that will swift us of our hard earned money. money is hard to make so we should apply caution when investing because any lost that occurred as a result of fake investment will amount to wasting of energy and time you used in making that money. so investing in bitcoin guarantee more hope compeard to some other sort of investment. even though there might be pretty profitable investment aside bitcoin.

yea that's why I said aside bitcoin, land and houses is another volitille assets we shouldn't forget that even as we preach about bitcoin, we should also think of diversification, not only in digital assets like bitcoin but some other physical investment too. it is often said that we should not put all our eggs in one basket, to avoid total loss when the worst case scenario happens which we pray not to.

There is no need to diversify for the sake of diversification.   Surely after one starts to build his wealth there might be some needs for diversification, but in the beginning of investing, and even the first few years there might not be enough to diversify, so it will depend on how much he has and if he has built a decent sized investment portfolio when diversification starts to make more sense.

And since you mentioned, digital assets, there is no need to diversify into shitcoins, so careful when you go down that path of thinking.

Yes, that's right, it's okay to borrow money to open a business and business, don't borrow money for extravagance and waste money on useless things, rich people borrow money from business partners or colleagues to open new businesses or new businesses, with so their monthly income and profit is to cover yesterday's debt contributions, and they do that with management so it is easy and neatly arranged, management is really needed, not only for our savings, for debt there must also be management, so that it is neat and not careless.

At the start of an investment even if you have enough money, diversification may not be necessary but to make sure that you stabilize and take your first investment to a certain length  whereby even if you diversify to other things it won't affect your first investment. Some people don't pay much attention to their first investment simply because they feel more comfortable in the one they diversified to but it is wrong to discard something that lifted you up and made wey for you to own other investments.
There is no digital asset that one can diversify to in the modern age that is better than Bitcoin.

the whole point of borrowing money or taking a loan should be entirely on whether they can make more by expanding their business or source of income instead of luxury.
most of people that takes loan because of wanting to indulge into luxurious life always ended up so broke they can't pay their bills and their due loan so they just went really bad with their financial condition just because they want to indulge into temporary luxury, even though honestly if i were them i wouldn't even be able to indulge into luxurious life knowing that probably within a year i'd become broke because of such terrible decision.
instead i'd be more focused on trying to earn more and more money through investment probably with that loan money and will be so fixated into paying the interest as well.
thats why debt management is so important.
knowing that a single mistake of entangled into debt could spell doom, definitely a bad way to go broke and its a unnecessary problem too.

It's tempting to buy unnecessary items. Like a million times, friends get into difficulty with auto loans, vacations, and luxury items. It's not worth it. Desire for pleasant things is natural, but there are clever and not-so-wise ways to get them. Borrowing for investments that can boost your income is one thing. But debting for things that depreciate? That's stressful and regrettable.

It's not about owning expensive things to be wealthy. Financial security gives you piece of mind. Your money will grow if you save and invest. Live within your means to avoid worrying about debts. Yes, it's hard when others spend like crazy. I know, but the long game is best. If you keep focused and follow your ideals, you'll do better than short fix seekers. Young and smart. Stay educated and you'll secure your financial future.

I will love to point out something, when talking about debt is not a bad thing to be debt is good in certain areas and also bad in some areas, there are things that are worth being in debt for and there are things that don't worth it.
Example of things that worth it is

1.  real estate mortgage:
being in debt in other to have a home is a good one. This kind of debt helps you get closer to a long term goal.

2.  Business:
A lot of people wants to start up there own business but finds it difficult to raise the funds needed, taking loan to start up a good business is worth being in debt for because as time goes on you will clear the debt and your business will still be there for you.

Bad debt include

1.  Consumer goods:
From designer clothes to fancy furniture to fine art – generally if you are going into debt to purchase these kinds of consumer goods, this would be considered “bad debt” because of a high interest rate. These purchases rarely increase your net worth and earning potential.

Of course having a house requires maintenance costs, because to make us comfortable too, no one wants or feels comfortable living in an uncomfortable house, of course comfort is one of the things that many people are looking for, including a house as a place for us to come home to rest. and establish warm relationships with family. Of course the value of a house can also be determined by its details and location, but I think currently the house that has the highest value is the house located on the side of the road, even though there are risks such as possibly being hit by an accident, a house on the side of the road has a high value, especially if the location is strategic. . Apart from that, I think 30 years is not a short time, so if we live in the house for 30 years there will definitely be maintenance costs, in fact I think even if we stay for 5/10 years there will still be maintenance costs.

discussing the physical appearance of the house is up to us, if we are diligent, neat people, maybe we will take good care of it, because in my opinion there are people who are lazy about taking care of their house so they don't want to spend money on maintenance costs, and this makes their house have a low value. . I agree with you, indeed when we want to move or really need to move due to work conditions or other things, the previous house can be considered as a liability, and if it is in poor condition it can reduce its value so that it is not profitable for us.

Protecting ourselves from things we don't need in life has become a very important thing to do because this is also part of management in living life. But if the condition is urgent enough, I think it would be much better for everyone to find their own solution without having to directly borrow or owe money to other people as long as we are still able to try to solve the problems we are facing ourselves. Because borrowing or debt is the last solution when there is no other solution for us that is more appropriate to do.

Making a loan to open a business is of course very different from borrowing to consume it completely without turning it into any business. Because any management will be more visible when capital can be managed properly to produce more money within a certain period of time, because if you only borrow to pursue things that are not necessary. Of course, there's no need to do this because in the end you won't get anything except it will only be difficult to pay it back.

Borrowing money to open our business is a bad idea, and one should be cautious, if you wanna borrow ensure the time for repayment is suitable as well as you understand that uncertainties lie in a baby business.

Though, anyone with right money management will scale up and wisely use the allocated funds.

When you are considering on taking up some loan on opening up a business then it would be situational because there are really those people who cant be able to make some start up due to financial condition.
Pretty sure that you are really that wary about having debts is never been that good but since you dont have that option then you do came up with this last resort step on which you could potentially be able to start up on the things that you do really be having in mind on where you would really be making up some business with a loan money. The only main problem on this one is that you cant really be able to know whether your business would really be succeeding or not.

How you would really be able to pay up those dues? How you would really be able to return those money in time if your business turned out to be failing or isnt generating that sufficient income or profit?
These are ones of the things that you should be thinking before taking up any loan on where having these considerations will really be definitely be telling you whether you should be getting one
or not. Making up some decisions wont really be that too easy specially into this condition but since we do need to take up some risks to earn something then this is why other people would
really be going into this path.

If you are not borrowing money to start up a business then what are you borrowing money for? Is it for daily consumption? Or other unnessery things that won't yeild out profit? Borrowing money to start up a business really worth it because it will definitely generate income that will enable the debtor clear off his or her debt. So in my perspective I don't see borrowing money to start up a business as a bad idea because what you borrowed the money for is not a liability but equally an asset unless such person lacks mismanagement of income that he or she will regret optioning for a loan to start up a business.

of course I am being very careful here sir, I know the implications involve in daversifying into shitcoin and my explanation does imply such, and I will never be distracted in any way since I know the path am following, of course bitcoin Presisly.

there is no need of waiting too long or procrastination as procrastination may Leed to regret in due time. when you have made some reasonable amount you can start bitcoin investment immediately provided that your fund can be able to strike a balance between investing in Bitcoin and setting aside a reserved or discretionary and float, to be able to maintain it  for a long term,  then you are good to go. not waiting to be like some sort of Elon Musk before investing, investing earlier gives you the opportunity to accumulate more stash to your bitcoin portfolio and you will be at advantage because the amount you invested in bitcoin stand a chance of creating more wealth in future than having your fund in fiat which will depreciation in value due to inflation.

the reason most persons don't pay much attention to their first investment is that it depends on the type of investment. let me say if the first investment was building a house for rentage or buying a land yes it could be an investment but such Investment is just a fixed asset which can be yeilding income just like other form of business which provides income but not every day but annually or 6 month intervals, so such asset is liable to be left un-concentrated and surely focus on investment like bitcoin. if the person has an alternative like a job that pays him on a regular basis he may as well be using the amount from the house rent annually and his money from his job to invest in bitcoin but surely figure out a way to program his investment.

Depends if your business model is already working and if you have established market since that borrowed amount will help you to maximize everything and can help you to became more bigger. But for new brands and trying to find their market also don't know if their ideas or product will be supported by people? I guess taking loan is really a risky option to take since there is a higher chance that their business will collapsed in this case and this is double problems that they need to face that's why its better to relax yourself first and don't take any unwanted decision since you might be in trouble paying your debts if bad events happen. I guess this is proper debt management and you need to think a lot more times before partaking decisions since its hard to recover back once we fall and we need to be wise on where we use our borrowed money so that there will be no issue will occur on our side.

If the business fails, the loan is a legitimate concern. However, you don't take on debt without a strategy. You must first know your stuff. Do people want what you sell? Who else exists? You need a sound business plan, not bullshit. You prepare for battle with financial predictions and contingency plans. Loans aren't everything. Angel investors and crowdfunding are choices. They may offer expertise and connections in addition to cash

After getting a loan, don't merely spend it. Goals and milestones must be tracked relentlessly. You should reconsider if you're not meeting those goals. Loan defaults aren't just financial losses; they leave a scar on your record. With the pin pulled, treat that debt like a live grenade

Why would it be a bad idea if the money lent is placed into a business that has been running for a long time and already has regular monthly income even though the category still looks like a baby? I think you don't realize and don't really understand that nowadays there are so many people who are willing to borrow to make their business more advanced and more developed with payment agreements that have been determined over their respective times.

And if you believe in wise money management to increase more profits through money itself, of course you also have to be able to manage a business so that your money can increase. Because money that is saved and looked after properly will never increase and can even result in a depreciation of the value of the money itself, whereas money that will only be consumed on a daily basis will definitely run out without any leftover even if you consume it super wisely :D

For some people, they are in debt and unable to pay it because they don't manage their finances in productive activities, so in the end it will be difficult for themselves. However, it would be better if in this life we did not get into debt, especially for unproductive purposes. It's better to live as we are so that without debt, our lives will be safest from various negative things that we ourselves cannot handle.

Diversification all depends on individual mindset, for me I don't think diversification is a bad idea because it gives an investor more room for divers source of income for is not always good to place all our eggs in one basket for it so somehow risky, you can decide to have 2 to 3 source of income at the start of an investment because there is enough money to do this. For It is when there is no enough money to diversify into other businesses that you might see it not necessarily to diversify because there is no enough fund to do that .

Debt can sometimes do us many good things but it is also a terrible thing for us.  If you pay your day's money on time, it won't bother you too much if you get paid back with some interest.  But if you borrow an amount that you cannot afford to pay back, then it will lead to a very bad experience for you. Because the longer you take to repay debt, the more interest you will have to pay. That's why learning about debt management is so important if you want to deal with debt in your life

Of course, borrowing money must be for a clear reason, such as to start a business, for example. In fact, taking out a loan is not bad if it is for the right thing, such as opening a business, which can be profitable for a long time as long as you persevere and manage it well in various aspects, including your finances. If they can run a business or the business they are running, maybe it will be profitable and with good money management, of course it can make them pay off the loans they have made. Also, we should be able to pay off the loans we make, even if we don't have income or earnings, but there is no exception when borrowing money has to be repaid.

If they borrow money for things they shouldn't, such as to fulfill their desire to be stylish by owning luxury goods or property, that is of course not recommended. borrowing money just for the sake of it will only make things difficult for us in the future, therefore before borrowing money we must be able to see what we will do with the money from the loan. Don't borrow money but use it for things that are not clear. It's true what you say, it's better for us to live just as we can, don't force yourself to look luxurious to many people, because that's not profitable in my opinion.

It's not always bad to borrow money to open a business, I don't think that's true. Even though we don't know whether the business we are running will be successful or not, we should do our best so that the business we run will be successful and profitable. Financial problems are a common thing, but when you have the determination and intention to start a business but don't have the money, don't let that be the end of everything.

try as hard as possible to achieve what you want, and basically we have to do our best for good results. Even if you can take out a loan, that's no problem, but you have to be able to take full responsibility for it even if the business you run fails. but what is clear is that no one runs a business with the goal being to fail.

We all know that  the aim of starting any business is to make profit but don't undermine the possibilities of failure. so taking loan to start up a new business is something I won't advice someone to do rather I will advise that you start up with the little capital you have them as time goes by you can take loan to expand the business . great Thomas Edison that discovered the incandescent lamp, just imagine he started this project with borrowed money and also don't forget he failed ten thousand times before he was able to get the desired results. If he had started this project with borrowed money the momentum wouldn't have been there, he would have given up long ago without achieving his aim and he would have been in debt. so borrowing money to Start up a business to me is not ideal so always start with the little you have.

even with those who borrow money, it already indicates that they cannot manage their finances well, but perhaps there are some people who borrow money for urgent needs such as medical treatment or perhaps opening a business, but of course what you say is true with those who are in debt and don't able to pay it, maybe they can't manage their finances well so they experience difficulties when they borrow money for who knows what purpose. but if we have borrowed money then it is our obligation to be able to pay it off because it is our responsibility to do so.

It's true that life will be calmer if we don't have debt. I myself recommend that as much as possible, don't have debt, especially in large amounts, because it will only make our lives difficult in the future.  Living in debt will certainly make us feel like we are being chased by ghosts. Anxiety will continue to haunt us, but we should pay it off no matter what, apart from that, it's better to think about it first if we're going to borrow money so we don't regret it later.

Debt sometimes helps us to do good things but sometimes it becomes terrible for us. It becomes scary for us if we are not able to repay the loan on time. I think Debt is as good as it is terrible.

Many people take loans and use them for various purposes, but those who take loans and use them in productive activities i.e. business or job, earn money from it and will be able to repay their loans on time. There are also many who take loans and spend their money in dishonest ways like gambling as a result of which they cannot repay the loan properly. So if you borrow money or take a loan from people it is right but you use it for the right purpose and be aware so that you are able to repay the loan before time.

When I hear the word loan, I remember the people of my country and the economic infrastructure of the country. I am talking about my country, the poor and middle class people of my country take loans from various banks or NGOs. Debt benefits people in one way and also harms a lot. The lower class people of our country have to take loans and pay extra money to their NGO organizations. Poor people take loans for their personal needs or to find small employment but unable to repay the loan properly, they have to sell their last possessions to repay the loan. A debt crisis can also have serious consequences for a country's economy, including high levels of unemployment and reduced living standards of the population. Once he gets into debt, his life becomes miserable in the future. A country or people should take on debt only when you can see that you will be able to handle it in the future.

Debt is very bad, it only takes someone that took a loan an is unable to pay back due to some financial constraints that will understand what am saying because the pressure alone that your lender will place on you can make you run into emotional trauma and feel like a failure that is why we should be contented with what we have and work hard, earn money of your own and open business and investment with your personal money so that you don't get depressed when you take a loan and not able to pay back.

Borrowing or going into debt will indeed be a burden that is not so easy to deal with because sometimes it will come into contact with its own emotional side. There are critical moments in our economy or family because the amount of debt is very large and can have fatal consequences for the integrity of the household. Therefore, never borrow beyond your means and even if you want to borrow, always try to have savings so you can pay it off in the future.

Of course, failure is likely to occur because those who are successful in their business are bound to experience failure, it is impossible for the flow to be so smooth without problems hampering their business. developing the skills we have is good because we should also develop the skills we have to be able to produce something good. However, on the other hand, not everyone has good skills, maybe they do have skills that need to be honed to become more mature. but I think that with business, sometimes you have to take risky actions, even though you or other people don't recommend starting a new business with borrowed capital, but I'm sure of course in your environment now there are definitely people who start businesses by borrowing capital, even with businesses that are already growing. from those who are still involved in debts and receivables. As long as we believe we can succeed by doing our best, I don't think it's a problem as long as it doesn't harm other people.

I respect your opinion because everyone has their own thoughts and perceptions, everyone has the right to do what they want and as long as it doesn't harm other people, that's fine.

In my opinion, this really depends on a person's personality and there are also types of people who don't think about how to pay off their debts after borrowing from other people and instead they get angry when the person they lent the money to charges them, but there are also types of people who feel uncomfortable when they have debt and they will always think about how to pay it off, there are some families who have a lot of debt and they have difficulty paying it off, making relationships in their family fall apart and there are even those who choose to separate because of the debt, you are right. It would be better for us not to borrow debt that will make it difficult for us to pay it off.

Many relationships have been ruined due to debts. If you can not control or manage your debts just do not get one. Especially one from special people like your friends or families. I personally am scared of having debts to my friends as it might impact our friendship and leave me with less a friend and a crushing debt.

You are right mate it is always good to have a source of income or a means to pay back before optioning for a loan expecially from loves ones in other to safe ourselves some embarrassment when it is due time to pay back and couldn't be able to pay back.

But in a more serious note it will be advisable we borrow money from friends, love ones or relatives than borrowing from bank or other organizations reason been that the interest rate won't be as high when compared to banks or other organizations because there will be consideration when you can't be able to pay back or back off all when the due time to pay back reaches. That is why it good before optioning for a loan one should have a source of income, also have a good intention before optioning for a loan.

In my experience, making debt at the start is very nice but it is difficult to pay it off because we don't know what will happen to us in the future, so I don't intend to make debt when my income is uncertain in the future, besides that I also don't want to lend money to my relatives or friends because they will definitely have difficulty paying it off, I once had a fight with my friend because he was unable to pay off his debt to me.

There are indeed people who owe money to their closest people such as family or friends, and indeed their relationship can be destroyed because the borrower cannot repay the debt while everyone needs money, sometimes I also lend money to others not because I have money but feel sorry for them, but of course when I need money I collect it and yes they say they cannot pay it for various reasons. When we have debts, we must be able to manage our finances well, fulfill our needs and pay off debts to maintain good relationships with each other. Because it is with the name of money that everyone is sensitive so even family relationships can indeed be destroyed.

Therefore here is the importance of money management so that we do not make money loans we must be able to manage finances well, although occasionally maybe we will be at a point that does have to do that, but if you really want to borrow money, we must consider it first, not to not think about the future can pay it off or not.

     There are other people who make borrowing a habit, while others use lenders to start their businesses. And lastly, they use the loan to buy the luxuries they want.
So what OP mentioned is a good habit when a borrower can do it because, for sure, they will not be in debt.

     Now, in order not to lead to problems due to debt, if it is possible and there is no need to borrow, don't borrow so that there is no stress and problems; that's all, but it's still our choice.
As other's always said always think more than twice.

anyone who makes borrowing a habit it can be an assassin, I don't really know exactly what is the element and what is behind some people being a debtor, if you used to borrow money consistently there is every tendency that you will be a money conscious person and you can do or doable in order to get money so that is not good for a man you need to be is strategizer also a man of personality and innovatives to make your own money so that you will not continue to be borrowing money from someone to live your life