Is taking a loan/debt addicted ?

[Iroh]

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

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

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

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[Vaskiy]

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

[uneng]

Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

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

[lienfaye]

Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

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

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

[Marcellin9]

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

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

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

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

[xSkylarx]

Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

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

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

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

[jokers10]

...
Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

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

[cafee_orange]

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

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

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

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

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

[og kush420]

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

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

[Renampun]

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

1. Make a plan
2. Consolidation of debts
3. Use the assets you have
4. Negotiation
5. Look for other sources of income
6. Press expenses as much as possible
7. Do not open new debt.

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

Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.

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

[bitzizzix]

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

[Elderyoung]

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

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

[Dr.Bitcoin_Strange]

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




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

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

[19Nov16]

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

[Marcellin9]

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




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

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

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

[CageMabok]

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

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

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

[Furious 7]

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

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

[tabas]

I think it's very unnatural to do because going into debt just to improve your lifestyle is a way to kill yourself before you die.

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

[Quidat]

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

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

[Alpha Marine]

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

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