Taking loan during high inflation?

[Oilacris]

Has anyone done the math for some of us who are not as quick grasping this? I still find this a bit too risky. I think I've heard about this before, supposedly you make your money as the inflation go down or something, can't exactly remember. Still, can people really afford to do this at such times like this?

Taking loan is always risk, but if you've got stable earning to pay the interest along with the capital even if the market isn't supportive then it is not a big risk. There are people who doesn't have big spending, and they are affordable to pay the loan premium from their salary or out of the business. For them taking loan to invest on cryptocurrency will be profiting, because they've got the time which will assure with profit/growth.

If you just take a loan to invest it on cryptocurrency then this bad idea you made because especially at this moment we are in bearish season and we don't know the out come on every market movements so if you buy some these days then the price of major coins dump then there's nothing will happen and you will sink in debt. Maybe take loan if you really need it especially by using it on your daily needs or other 100% sure profitable things.

for me taking a loan to invest in crypto is very good but the current time because the crypto market is in a bearish condition. indirectly for the time being can not make a profit from our investment, while the loan continues to mature and must be repaid immediately. Isn't that condition can make us stressed unless you have a reserve of funds to cover the loan due.

It's true that taking a loan to invest certainly doesn't hurt, but on the other hand we also need to consider the right time to take the loan,
and if you look at the current state of crypto where the market is still down for me this is not the right time and I agree it can be stressful for us,
but it all depends on everyone's consideration

It's a matter of risk taking because not all would really be that risk taker on making out decisions something like this like taking loans and putting it up all in crypto since we know on how risky and non assured type of investment.

No one knows on when it would pump and no one knows on when it would dump or moving sideways on which if you do rely your crypto investment profits to repay those loans or debts then you are putting yourself at risk or too much more deeper problems.

[dezoel]

The scary thing is, giving your money to someone for investment. Is there anyone who understands this scare? I don't know if it is just me. Like for example you are going to get a loan, and then give that money to someones account, so it is all traceable and there is rarely ever anything that would be easily figured out, and yet when you are buying a real estate, a house, it is obvious and simple and tens of millions of people do it everyday right? Yet I would feel scared when buying, I would be sending money and then what if they don't give me the house?

Silly fear, but it is real and I fear that. I have a great great great real estate deal at 60k dollars, which I do not have at all, but it would pay itself back, I just need to pay 5k upfront, and 55k would be loan which renter will be paying basically, and yet I am fearing it a lot, which is funny to some people but I find it a serious problem.

[BITCOIN4X]

I haven't taken out a loan during this inflation and so far I haven't thought about doing so. My earnings in crypto and the real world still seem safe enough not to have active loans either in crypto or fiat at banks or people around.

I just thought that having an active loan would only burden me financially and it would make me insecure to do anything especially about work. So thankfully my financial condition is still safe now without a loan.

The scary thing is, giving your money to someone for investment.

Of course, that's completely unreasonable. But when one has something more to give in the form of a loan regardless if it is for investment or trading then what is the harm? I only think about collateral, it will be safer.

[batang_bitcoin]

The scary thing is, giving your money to someone for investment. Is there anyone who understands this scare? I don't know if it is just me. Like for example you are going to get a loan, and then give that money to someones account, so it is all traceable and there is rarely ever anything that would be easily figured out, and yet when you are buying a real estate, a house, it is obvious and simple and tens of millions of people do it everyday right? Yet I would feel scared when buying, I would be sending money and then what if they don't give me the house?

Buying a house is different from giving your loaned money for investment. There's the process for buying a house and you should have the idea on what documents must be shown to you before you purchase that real estate. It's your negligence if you don't know anything before you buy it and let's say that you've followed the process and complete documents are there, you have the right to sue whoever is that person you're talking to that don't want to give the house. You're confused and fear would really give you that headache.

[nurilham]

I just thought that having an active loan would only burden me financially and it would make me insecure to do anything especially about work. So thankfully my financial condition is still safe now without a loan.

You need to understand that having an active loan isn't a must. So, if you don't need it, never think to have it in your life. People who try to take a loan because they have no longer money for investment, or want to get bigger profits by using loan money. So, if you don't want to take a high risk in investment and you also still have enough money for investment or for your daily needs, taking a loan is surely not needed. What for? Sure, you are very lucky that you have a good financial condition, which makes you never consider taking a loan.

[Sir Legend]

When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.

[Naficopa]

When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.

I would try to play safe. And I would not put myself in unnecessary trouble.
But there are people who love taking a risk and they would go get it. The bigger the risk the higher the profit is. or the loss.

[savetheFORUM]

the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

It's similar to taking loans when the price is down and there are many people who do that. While it's not the worst idea in the world, there are a few problems like what would happen if you need to pay the interest and the economy/price goes further down. Also there are times when the expected return is less than that of the due interest and that causes a lot of problems.

According to me, loans must be taken taking into consideration the profits you are going to make with it. Just because there is inflation doesn't sound like a great reason for taking loans. If you have done the calculation and your income will be higher than the interest, then go ahead and take the loan!

[og kush420]

the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

It's similar to taking loans when the price is down and there are many people who do that. While it's not the worst idea in the world, there are a few problems like what would happen if you need to pay the interest and the economy/price goes further down. Also there are times when the expected return is less than that of the due interest and that causes a lot of problems.

According to me, loans must be taken taking into consideration the profits you are going to make with it. Just because there is inflation doesn't sound like a great reason for taking loans. If you have done the calculation and your income will be higher than the interest, then go ahead and take the loan!

I think we should take the loan when it is needed the most.
Impulsive borrowing is like an impulsive buying and it's hard to get rid - sometime the interest rate rise and fall to such an extreme that one gets sick for losing a huge amount of investment,

[jaberwock]

When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.

I don't know how people are so calm about taking loans. I mean when I consider taking a loan, it's almost the last thing on my mind. I would rather sell my car or bike and arrange money because having a loan on my head is not something I am very calm about. It's hard to imagine what would I do if I take a loan, especially non-collateral loan from a friend or family and then struggle to pay it back on time.

I would try to play safe. And I would not put myself in unnecessary trouble.
But there are people who love taking a risk and they would go get it. The bigger the risk the higher the profit is. or the loss.

I have the same mindset, I see loans as a potential problem later on. It might be because I have seen my father struggle with loans all my life and it has subtly impacted my way of thinking.

[lalabotax]

I don't know how people are so calm about taking loans. I mean when I consider taking a loan, it's almost the last thing on my mind. I would rather sell my car or bike and arrange money because having a loan on my head is not something I am very calm about. It's hard to imagine what would I do if I take a loan, especially non-collateral loan from a friend or family and then struggle to pay it back on time.

People may feel calm because they only think about the possible profits to get from their investment by using the loan money. They never think about the risks that possibly happen in the future, they keep their optimism in using the money. But this is the wrong way, it is like to avoid thinking about the worst scenario to happen in our investment. Some loans may have a return deadline, they will panic when they realize they have no longer time to collect money to return the loan. So, they won't be calm forever, they must be like you to always think about how to return the loan money.

[Wong Gendheng]

Taking Loan is an instant solution to overcome inflation, but we must be aware that loans can make us sick and bankrupt if we do not have a strategy to use the money, if we already have a clear plan for example to make a business or increase investment then taking loans is the right idea .

[og kush420]

Taking Loan is an instant solution to overcome inflation, but we must be aware that loans can make us sick and bankrupt if we do not have a strategy to use the money, if we already have a clear plan for example to make a business or increase investment then taking loans is the right idea .

high prices are pushing up the cost of living and thereby erodes the purchasing power of the the consumers. High cost of borrowing strangles demand in interest rate-sensitive segments however this fiscal inflation is more hurting than before. In the UK the bank of England has warned that inflation might reach 10 percent within months as the process of fuel and food put pressure on household budget.

[ChiBitCTy]

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I think one should only ever be taking a loan for investments if they’ve got a considerable amount of income that seems to be set to be coming in for some time to come. Taking any sort of loan is risky in and of itself but to take a loan for some volatile investments Im not sure is a good idea regardless of interest rates. I suppose size of loan plays a big factor.

[Alisha-k]

Taking a loan for investment is only advisable if there is enough duration to pay back lets say a long term loan. Inflation and volatility goes hand in hand but for a high salary earner the risk can be considered but it must be a worthy risk. one thing i will forever kick against in taking loan for investment is never invest in a project that has given high ROI already no matter how tempting it appears

[og kush420]

I think one should only ever be taking a loan for investments if they’ve got a considerable amount of income that seems to be set to be coming in for some time to come. Taking any sort of loan is risky in and of itself but to take a loan for some volatile investments Im not sure is a good idea regardless of interest rates. I suppose size of loan plays a big factor.

I agree with you. One should risk one's own money rather than taking loan and paying interests as well.
I would rather not indulge myself in loans and unnecessary debts. The point above is well stated that one should use the extra money for this. There is no end to inflation rather earn lots and lots of money. JUST!

[Sir Legend]

When inflation occurs, there are actually many opportunities, there will be many needs that skyrocket so that by looking for substitute materials it will make us successful, taking a loan is a good idea to develop a business so that it grows rapidly during inflation, there are many opportunities during inflation, the best thing is to follow the trend which is popular.

[The Author]

But the question is what if you do not own enough money for investing? can you take a loan and invest?

I wouldn't take or even recommend taking to someone else because taking a loan to begin with already an emotional stress or tie as you would always have it at the back of your mind that you're owing wherever you may go.
Secondly, using such loans to invest in cryptocurrency is considered very unwise from my own end. because no matter how good of an analyst you are, cryptocurrency would always shock you by taking a more positive turn than expected or a negative altogether.
And at the end of the day you would still have to pay your Lender and with the high inflation as fore-mentioned, that would be a massive loss.

[Pujangga]

Of course this depends on the goal, most people take loans to fulfill their hobbies and interests such as buying cars, gadgets and so on, of course this is a difficult burden because when they want to pay installments and their needs go up, they will experience difficulties and fail to pay.

[UpiwArt]

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

Take a loan in current market conditions that are not good or are getting worse with the aim of investing it
Very risky
while investing with non-loans is also risky, especially by relying on loans, but it depends on your way too because it must be considered carefully and unanimously