Is taking a loan/debt addicted ?

[erep]

So true. it is better for us to always prepare ourselves financially for our future as always routinely setting aside money for savings. small nominal is not a problem. the important thing is we consistently do it. This is done so that when we have an urgent need, we don't need to take out a loan because we have money in our savings that we can use when we really need it. it's better to avoid loans so that we avoid the problems that come after.

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

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[Smartvirus]

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.

It's the first time am heating that someone has never had to loan money at some point in a continued life. I have my doubts on that as, you might not necessarily have to loan money from the bank or some financial institution but, from a friend or relative might as well count for loan. Anyway, that won't solve anything but then,
Taking loans ain't a cool idea. It's something am not okay with and so i don't. I might have had to take quick loans from a couple of friends and that might be in times where, ive got a pending transaction that needs to be cleared out or due to some network failures to have disrupted a payment process and whatever the case might be but, you don't take money when your not 100% certain of paying off in a given time. You ought to have had plans, all the elements to its attainment within your control and then, you could have a go at it if you must. Otherwise, keep off loan, its not a healthy habit.

[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.

It's the first time am heating that someone has never had to loan money at some point in a continued life. I have my doubts on that as, you might not necessarily have to loan money from the bank or some financial institution but, from a friend or relative might as well count for loan. Anyway, that won't solve anything but then,

I am glad to be the first person you have heard about without any loan. What you described borrowing from friends or relatives has nothing to do with me either.

Taking loans ain't a cool idea. It's something am not okay with and so i don't. I might have had to take quick loans from a couple of friends and that might be in times where, ive got a pending transaction that needs to be cleared out or due to some network failures to have disrupted a payment process and whatever the case might be but, you don't take money when your not 100% certain of paying off in a given time. You ought to have had plans, all the elements to its attainment within your control and then, you could have a go at it if you must. Otherwise, keep off loan, its not a healthy habit.

Your explanation here just applies to the case of one of my uncles. It happened last night. Yesterday was my father's birthday so I went to dinner with him for celebration. In the midst of the meal, he got a call from one of my uncles, to be precise, this uncle is not my father's brother but an extended family cousin. Anyway, he called up saying his daughter has been admitted to college but he is  short of money for paying the tuition fees now. He is encountering some financial problem and has not been paid for months. Considering his daughter's education, he had to ask for a loan from my fathter, $5000. My father said yes and would prepare the money within a day or two. Well, my father and i both know this uncle will pay back so this kind of loan is acceptable for him.

[LittleBitFunny]

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 think there are many loan addicts, I met someone who loaned me 150$ before because he got my trust I allowed him to lend me this amount, then he only partially loaned me about 30$ once after that nothing happened after that, it took a few months and I went to his house and found out that he had moved. I asked his neighbors if anyone knew where he had moved to. I found out that he had a habit and a disease of borrowing and hiding. he owed it.

   But if you pay well, there is nothing wrong with borrowing repeatedly in my opinion, because you owe responsibly to what you borrow, and you value the creditor's trust.

Borrowing many times can make you addicted and from there will form bad habits. I have no problem with borrowers if their economy is really in trouble, and that is a last resort. But if you regularly take out debt, then you are addicted to it, and when that happens will make you lazy, making no effort in life. Every time you run out of money, you will not think about getting a part-time job or looking for ways to make money, but will immediately think of borrowing to use.

[Pamadar]

So true. it is better for us to always prepare ourselves financially for our future as always routinely setting aside money for savings. small nominal is not a problem. the important thing is we consistently do it. This is done so that when we have an urgent need, we don't need to take out a loan because we have money in our savings that we can use when we really need it. it's better to avoid loans so that we avoid the problems that come after.

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

Having extra spare when there're unexpected emergencies will allow us not to worry that much, unlike if we don't have any available money, the effect is really hard for our finances.

To the point that we will be needed to barrow/lend money that will lead us to be stuck in paying either in a
weekly or monthly basis, which will be an additional expense which will add up the burden to our finances.

[jokers10]

Borrowing many times can make you addicted and from there will form bad habits. I have no problem with borrowers if their economy is really in trouble, and that is a last resort. But if you regularly take out debt, then you are addicted to it, and when that happens will make you lazy, making no effort in life. Every time you run out of money, you will not think about getting a part-time job or looking for ways to make money, but will immediately think of borrowing to use.

For some it is a different style of life: they always use credit cards, take loans, etc., but they always have enough income for all that and if they didn't take loans they'd anyway lived with not less purchases. As some countries with a high GDP and high income which always borrow money anyway — they can work without loans but prefer to use them. Just other style of life. Not suitable for me, but I can understand them.

[freedomgo]

So true. it is better for us to always prepare ourselves financially for our future as always routinely setting aside money for savings. small nominal is not a problem. the important thing is we consistently do it. This is done so that when we have an urgent need, we don't need to take out a loan because we have money in our savings that we can use when we really need it. it's better to avoid loans so that we avoid the problems that come after.

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

Easier said than done because saving is kind of situational in my perspective. I mean, well, if you're earning quite well for a daily basis then you do really have some spare funds to save so that you have something to take whenever you need some emergency funds. But how about those people who barely afford to eat at least twice a day as they cannot even get themselves some food to eat as much as thrice a day and then there are some bills that they need to cover monthly. Saving is quite impossible for them even if they live cheap because their wages are not enough.

[Lida93]

Having an outstanding loan and taking another load so as to pay for the outstanding one is more like running in circles, and there's this ugly side of debts/loans the more you find it difficult to clear it the more it piles up with steady interest. I don't fancy taking loans to use in executing my projects, if the needed amount for it is not available it's left for me to apply some breaks and work out ways to get the money other than loan.
I don't have experience with handling loans payment as I haven't taken any before and even the interest rates for loans in my country is something that should scare me from thinking of taking one.

[Lanatsa]

Having an outstanding loan and taking another load so as to pay for the outstanding one is more like running in circles, and there's this ugly side of debts/loans the more you find it difficult to clear it the more it piles up with steady interest. I don't fancy taking loans to use in executing my projects, if the needed amount for it is not available it's left for me to apply some breaks and work out ways to get the money other than loan.
I don't have experience with handling loans payment as I haven't taken any before and even the interest rates for loans in my country is something that should scare me from thinking of taking one.

Running in circles and you are really that making yourself getting drowned because of interest but this isnt really that a bad idea considering you are taking some loan from a bank which interest isnt really that big compared into those lending firms and corporations out there which i could say that its never been that worth. If you are making use of that loan amount on applying it on a business then i would say that it
is really worth it but if you are taking a loan just to buy up something like wants or going travel or simply with expenses then you are really that putting yourself into a big trouble.
We cant really just make ourselves that be like this forever, try to find ways on freeing up yourself from this shackles.

[capedbaldy]

Easier said than done because saving is kind of situational in my perspective. I mean, well, if you're earning quite well for a daily basis then you do really have some spare funds to save so that you have something to take whenever you need some emergency funds. But how about those people who barely afford to eat at least twice a day as they cannot even get themselves some food to eat as much as thrice a day and then there are some bills that they need to cover monthly. Saving is quite impossible for them even if they live cheap because their wages are not enough.

You're right, everyone doesn't have the same income and some people with a low class economy can't even have enough food 3 times a day, so saving is optional for them because they have to focus on their daily needs and they only work extra to get extra wages, but for people who already have a fixed income it is advisable to save for urgent needs because we never know when we need large funds for treatment or other important needs, but we already have some funds to use whenever needed.

[MaterialMouse69]

I don't have experience with handling loans payment as I haven't taken any before and even the interest rates for loans in my country is something that should scare me from thinking of taking one.

It's true that your just repeating your situation whenever your taking a loan/debt just to save your situation for a day. From my experience, I needed to have some money to pay my needs due to covid-19 I lost my job for a month because the company doesn't want to implement work from home. So I decided to take some loan since the company started to open up again so my work came back. I realized that all of my income went all to pay my loans thats the time that I know I needed again money. Yeah its a loop so I had no choice but to survive just to end the loop. Don't ever try to loan just to survive it will worsen your situation.

[Marcellin9]

Having an outstanding loan and taking another load so as to pay for the outstanding one is more like running in circles, and there's this ugly side of debts/loans the more you find it difficult to clear it the more it piles up with steady interest. I don't fancy taking loans to use in executing my projects, if the needed amount for it is not available it's left for me to apply some breaks and work out ways to get the money other than loan.
I don't have experience with handling loans payment as I haven't taken any before and even the interest rates for loans in my country is something that should scare me from thinking of taking one.

So far, you are the only one that has no loan/debt in this forum and I am glad to hear from you. As the same type of person, I have known this feeling of debt-free so well and it is such a blessing. Please stay who you are and continue to live a life without any loan/debt. Cheers.

[Semar Mesem]

The thing that can lead to addiction is taking a loan, especially now that it's easier to take a loan because of the presence of an online loan platform, only the terms are easy and in less than 24 hours we have got the loan we submitted, the risk of online loan convenience is of course very much from the interest is very large and can reach hundreds of percent in a year especially if you fail to pay there will be lots of fees or fines.

[Inwestour]

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

This is the opposite of what the OP wanted to cover in this topic. Accumulating capital is what every person who knows how to handle money should do, but it is the opposite action for those people who are used to living on credit.

I know that people can change, but I find it hard to believe that a person who has never saved money can just start doing it. To do this, you need to change your thinking, and this is a very difficult and long work.

There is a type of people who simply do not understand why this is necessary, they want to live here and now and do not want to think about what will happen tomorrow, in a month or in a year.

[AicecreaME]

Debts that are being paid by debts is a suicidal cycle that will only take away opportunities of your lifetime. Other people doesn't have any choice because they doesn't have enough privileged to earn money by being employed or being a freelancer, so that is their last resort. A cycle like that do exist most likely in a third world country. It's hard to have a life like that but that is the only way they can think of to survive.

[wmaurik]

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

The important point that you are expressing here is saving, because everyone cannot predict how their condition will be in the future and even everyone does not know when they will get sick. I also think that saving is very important so that everyone needs to allocate funds for several things in their life before they save as you suggest.

Because everyone needs to think about the basic needs in their life and also the need for investment for their future and the need for savings for difficult conditions when they don't expect them to come. So saving is the third important thing after allocating funds for the two main things I mentioned, although everyone also needs to prioritize their body's health.

[puloweh555]

If we consistently save every day, week or month then we already have savings for urgent needs, it doesn't matter for nominal savings because we must have savings for urgent needs for unpredictable conditions in the future, we don't know how our health or economic conditions will be in the future , so it is highly prioritized for us to allocate funds for daily expenses, salaries or other income for savings for urgent needs.

I agree with you, it's best to try not to owe/credit so that our lives can be calm without the burdens of life. Debt addiction is usually a symptom of a deeper problem within you. Maybe it's ungratefulness and greed, poor self-image, or a lack of self-love to blame.

I, with the existing income, maintain or have the discipline to live in moderation so that there are savings or excess that can be saved for further investment, which later after retirement is investment income or passive income.

[armanda90]

I agree with you, it's best to try not to owe/credit so that our lives can be calm without the burdens of life. Debt addiction is usually a symptom of a deeper problem within you. Maybe it's ungratefulness and greed, poor self-image, or a lack of self-love to blame.

I, with the existing income, maintain or have the discipline to live in moderation so that there are savings or excess that can be saved for further investment, which later after retirement is investment income or passive income.

Some people mindset try how to get challenge with their life after having loan because they can push up working well how to pay loan interest every month, but not good financial advice when taking loan and used it as trading capital because not promising when investing or trading in Bitcoin will earn much profit later.

Life without paying loan interest every month make us freedom, but not wrong when some people minds get competitive have challenges with debts that must be paid every month, moreover being used for trading capital makes them more enthusiastic at work.

[blockman]

I agree with you, it's best to try not to owe/credit so that our lives can be calm without the burdens of life. Debt addiction is usually a symptom of a deeper problem within you. Maybe it's ungratefulness and greed, poor self-image, or a lack of self-love to blame.

I, with the existing income, maintain or have the discipline to live in moderation so that there are savings or excess that can be saved for further investment, which later after retirement is investment income or passive income.

I'm not a borrower at all times but I have experienced borrowing for some time and it's freaking me out when I'm thinking of the deadline. I've chosen that and I've placed the burden and responsibility on myself so that I won't be damaged in front of the lender.
That's why as much as I can, I am avoiding borrowing and that's what I'm trying to achieve because I just can't take the emotional impact that it gives me even though I have no intention of defaulting a loan that I take from the banks or even to my relatives where they're on the business but they're not loan sharks. The importance of keeping some savings from your income or profit from your business is very much important, so in times of need you've got something to take and if that's very urgent, you can just pull it off on the banks and withdraw it as quickly as you can.

[qwertyup23]

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 definitely agree that this is indeed, a vicious cycle.

In order to determine on why this is considered a cycle, you have to understand why the person is loaning in the first place. Assuming that he has a stable job that provides income, he/she might have prioritized in purchasing other resources than meeting their obligations with themselves or their family. To address this issue and to pay the billables, they would resort to loans and other various loan shark channels.

This becomes a cycle especially when a person cannot afford a credit card to pay for it. With this cycle, the problem of paying the loan continues until the person is able to pay it. From this example, it can be gleaned that the problem stems from the person managing his resources and money. With proper financial background and support, this cycle can be broken.