Is taking a loan/debt addicted ?

[browsiek]

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.

to be honest I do not justify someone to be in debt but everyone's circumstances are different. do you know the proverb dig a hole close a hole, now the picture is like you owe it to the bank but can't pay it and look for another platform to pay it so that the money we have runs out to pay the interest on the loan.
when you are going into debt, you should think carefully, there must be potential money to be paid so that the cycle does not spread.

[Ngewex Yuk]

We have to leave the bad habit of taking a loan because debt will waste our time and opportunities to do other things, especially now that it's too easy to take loans so it tempts anyone, in my country it's very easy to take a loan from a smartphone application, only with a smartphone and sim card which contains at least 20 friends or family and then they will confirm that we will receive the loan amount immediately.

[xSkylarx]

We have to leave the bad habit of taking a loan because debt will waste our time and opportunities to do other things, especially now that it's too easy to take loans so it tempts anyone, in my country it's very easy to take a loan from a smartphone application, only with a smartphone and sim card which contains at least 20 friends or family and then they will confirm that we will receive the loan amount immediately.

If you don't need to take a loan for emergencies, then it is good for you. We do have our own perspectives, even mine. If ever I have a chance not to take a lot, I will not be taking it because it is very hard to pay it back and you are struggling at that time, but I don't have a choice because I need money for emergencies and also because there are other things that I need to pay. That is why I only take a loan for emergencies, not wants.

[Cryptmuster]

I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.

Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.

[Cryptock]

I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.

Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.

One should be very careful taking loan - it can be very harsh on your friendship incase you are taking loans from a friend or family
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.

[jokers10]

...
With proper financial background and support, this cycle can be broken.

If the one takes more and more loans to repay old ones and other previous financial obligations it is usually not a problem of only financial support. Usually they need help with financial literacy and they can reject it being frustrated with their bad conditions. To escape that circle first they need to understand what main problem is, and in the case of growing loans it is usually not just money, but planning and possibility of calculating a personal budget. And we unfortunately can see that some can't escape that circle...

[Kapokala]

Yes, it actually is. Loans give You a hidden shadow, impression, that You can afford it. But taking a loan actually means You can not. Also we do have to seperate two different type of loans. If u take loan for new TV, PC, or fridge (without having enough cash in Your bank account), then that's the stupidiest thing human can do. But if You take loan, for the thing You already can buy with cash (but You do want instead to invest that cash), then You are free to go. Discussion what that money should be spend on, what kind of assets, is a completely different story. 

[Comingdown]

...
With proper financial background and support, this cycle can be broken.

If the one takes more and more loans to repay old ones and other previous financial obligations it is usually not a problem of only financial support. Usually they need help with financial literacy and they can reject it being frustrated with their bad conditions. To escape that circle first they need to understand what main problem is, and in the case of growing loans it is usually not just money, but planning and possibility of calculating a personal budget. And we unfortunately can see that some can't escape that circle...

I totally agree with this since I believe that being financial literate would ease the burden of taking loans. Having loans isn't really the problem, but it would escalate to be a problem if you don't plan and think of it further. Taking it requires taking consideration of everything, and if you found yourself in the verge of being addicted to it, you should have a plan to get away from it. Cycle would always seem to be unending since paying loans is not the only thing that we are considering every day. We have to live, so personal expenses should be considered and that would make the situation even harder. But I also agree that for some this cycle is not getting any close for it to end, which is very unfortunate to think, since we could have done something before you put yourself on that situation.

[Iadegbola34]

It's a bad financial decision to borrow to pay a loan. The cycle never ends and you may never really be debt free because the money you're borrowing isn't going into something productive that can yield profit but rather to pay another loan.

[jokers10]

...
and if you found yourself in the verge of being addicted to it, you should have a plan to get away from it.
...

If you feel that you can become addicted of something wrong the main thing is to try to avoid it as only possible. Solving a problem is usually much harder than avoiding it. And as we talk in this topic even if some found that they are fall in the problem of a loan they can't afford they should stop taking loans and try to solve a problem any other way just in the moment they realized they can't handle it. They should ignore feelings like shame and pride and ask for help. It is really hard but when they'll see some light in the future they'll feel much better.

And as I see it we try to motivate people not to start taking loans if they don't know how to deal with them and not to give up if they found this topic in a search engine and want to know what to do if they have a problem with loans.

[Pamadar]

nowadays there are very many people who borrow money to open a business whose business has not fully run well, so with a courage, every time the bill they borrow there is always a way to pay it, even though they have to borrow from others which will also be paid off later, and most of them can end this difficult time until they can run a business without having to borrow money from others, Until now, success can be felt, but there are also as they also cannot pay off their loans and eventually all the assets they have will be taken over by the borrower.

The problem with balancing loans and your daily expenses, if you know how to limit yourself and know how to find additional ways to earn, taking loans and use it for business is something that you can control.

But, those who are taking loans and can't handle their finances, they are prone to keep finding additional loans
since they needed to pay the first one and the cycle will just continue to do that, they will ask for more to the
point that they are just only working or doing business just to pay for the loans.

[bbigtart]

nowadays there are very many people who borrow money to open a business whose business has not fully run well, so with a courage, every time the bill they borrow there is always a way to pay it, even though they have to borrow from others which will also be paid off later, and most of them can end this difficult time until they can run a business without having to borrow money from others, Until now, success can be felt, but there are also as they also cannot pay off their loans and eventually all the assets they have will be taken over by the borrower.

The point is that you want business capital, whether it comes from a loan or your own money, if you manage it improperly, you will definitely lose.
so if my view is not wrong the debt is wrong but the business plan is wrong so many people cannot repay or repay the loan. Try occasionally not to blame others for your own mistakes. Loans are okay as long as we are able to target to pay on time. Don't borrow money to splurge.

[SOKO-DEKE]

As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.

[jokers10]

...
Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling.
...

And it is usually not a good idea for an entrepreneur to take a loan for their business when it is struggling already, because they get another problem with paying debt while everything is no longer okay. Loans for business usually can be a good idea when everything is growing and they want to scale their business and increase their income, when their business has no problems with money.

So now we can see why many people can get into a vicious circle of loans, they think that when everything is no longer okay it will be good to worsen their position with obligations on loans. Sometimes is can help, but not in most cases.

[Cedie]

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.

Also, only take a loan when you have the capacity to pay it back. Especially for credit or installment loans, only borrow money when you have the whole amount with you and the only reason that you loaned is because you want to maximize the time value of your money. It is also important to pay on time so you'll a good credit score or impression. Discipline is highly important so  we can enjoy the money we have and the trust we built.

[Uruhara]

We have to leave the bad habit of taking a loan because debt will waste our time and opportunities to do other things, especially now that it's too easy to take loans so it tempts anyone, in my country it's very easy to take a loan from a smartphone application, only with a smartphone and sim card which contains at least 20 friends or family and then they will confirm that we will receive the loan amount immediately.

Lately, there have been many applications that offer loans quickly and easily. they talk about low interest but not too much time period. so that it will be difficult for the borrower. because they don't have enough time to find money to pay off the loan.
many are stuck with this.

and well, in the end, they work only to focus on paying off their loan repayments. and it does make financial management difficult to implement. so it is difficult for them to escape from the debt bondage that they have entered. so we should really avoid things like this.

[Cryptmuster]

As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.

Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.

[slapper]

I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.

Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.

One should be very careful taking loan - it can be very harsh on your friendship incase you are taking loans from a friend or family
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.

Loans aren't for wimps. It's a major decision that might affect your finances and social life. If you're borrowing from friends or family, think broad picture. Research show that money problems may undermine even the healthiest relationships, causing anger and conflict. Hence, you must handle the matter carefully and discuss the dangers and benefits with your loved ones. Now, loans might help you realize your dreams. Smart loans might help you launch a business or return to school. There's risk, but don't let it stop you. You can succeed with a good plan and attitude. Self-confidence is key!

[Pamadar]

As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.

Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.

To back up your loan, aside from the possible earnings from the business that you'll going to put up, you also need to have other sources of income that will help you to pay your loan.

If you'll going to take everything out from the new business that you just started, the chance that it won't
survive for long, unless the business is really good and really producing a decent amount of earnings.

[FireDAOJackie_Z]

I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.

Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.

One should be very careful taking loan - it can be very harsh on your friendship incase you are taking loans from a friend or family
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.

Loans aren't for wimps. It's a major decision that might affect your finances and social life. If you're borrowing from friends or family, think broad picture. Research show that money problems may undermine even the healthiest relationships, causing anger and conflict. Hence, you must handle the matter carefully and discuss the dangers and benefits with your loved ones. Now, loans might help you realize your dreams. Smart loans might help you launch a business or return to school. There's risk, but don't let it stop you. You can succeed with a good plan and attitude. Self-confidence is key!

"Now, loans might help you realize your dreams..." I agree with you in general but putting self-confidence in loans will lead to disaster. You have clarified that it is better not to borrow from family or friends, with which I totally agree. But "smart loans" ? I don't really think so. All loans are designed to make profit out of borrowers and there is no exception. The only part that may be called "smart" are small group of people who can take advantage of loans such as banking managers. For average people like us, there is no way we can outperform the whole debt system. I would never be confident in handling finances. Just live within my means.