Is taking a loan/debt addicted ?

[Fortify]

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.

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

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[Mahanton]

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.

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

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

[erep]

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

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

[Smack That Ace]

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

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

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

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

[Dickiy]

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

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

[Lubang Bawah]

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

[Marcellin9]

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

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

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

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

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

[LogitechMouse]

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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.

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

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

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

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

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

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

[Qiubell5]

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

[Kelvinid]

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

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

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

[Mr. Magkaisa]

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.

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

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

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

[Crypt0Gore]

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

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

[Rockstarguy]

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.

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

[Wong Gendheng]

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

[Ludmilla_rose1995]

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.

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

[molsewid]

How would you deal with the problem ? I am all ears.

• Avoid the behavior of taking debt (again) to cover (other) debt as much as possible.
• Increase income, involve unemployed families.
• Rearrange lifestyle, spending (even ready to live in extreme conditions).
• Don't delay paying installments when it's time.

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

[KennyR]

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.

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

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

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

[serjent05]

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.

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

[Hispo]

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

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

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

Does not sound very healthy either.

[dunfida]

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.

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

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