Is taking a loan/debt addicted ?

[wahyuagung26]

In my opinion, taking a loan can lead to addiction because people think instantly and are lazy. It's only natural that currently many companies offer online loans because most people will make loans that don't require difficult conditions, but the consequence is that they provide high interest because of the risk of consumers not paying. very high.

This work will always follow someone's every decision, it's true that if we often take loans this will continue to make them addicted to this, and of course with the current options that are easy for them to make loans easily and the terms are not too complicated, some individuals will be tempted by this, and they give it in a practical and easy way, because this will continue to cause them to be addicted to this, and maybe that will become a problem later in terms of the interest they will face.

[1714686586]

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[jossiel]

There is nothing wrong with a loan if not abused, many billionaires today one time or the other had to take a loan to finance their business as a source of capital for start-up businesses. Only if the loan is to access things that had no value for example buying new clothes just for a party or show up.

That is because they are on a better state. The banks are the ones that are even offering them loans without even the need to apply and that kind of treatment is because of their status and their success.

They can actually use their money to finance their other investments and businesses but they have known the trick over the years without using any single penny to finance it.

And that's the cashflow that they're proven into their businesses and the banks are hungry with those that's why they want to take a slice of the pie from these billionaires. The banks are also aware if something messes up with their loan to them, they can easily pay it whether with cash or with their assets.

[kak uli]

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 borrowing money repeatedly won't be a problem if you pay it on time, but the problem here is whether the person who borrowed can be responsible for what was promised? Since we don't know what goes through someone's mind after borrowing money from you and the responsibility to repay it on time, I don't think everyone has a conscience when it comes to paying debts or repaying loans he has borrowed.

[kickea]

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.

Well, the bank have some responsibilities too. If they gave you a loan that you were never supposed to get based on your income, then there are ways were you don't have to pay. For farmers in Norway you have to take loans if you want to upgrade your farm, the loan will be so expensive so they are not able to pay it back with their income because the prices of their goods are decided by some big players in the industry. And the farm is worth less then what they have in loan so that is also not a good option, but usually many farmers have secondary jobs. That is also a solution, work more, work harder, freeze in the winter (don't use money on heat), go in the forest and pick berries and mushrooms, fish in the ocean etc. 

But the it is really like you said, it is a vicious circle the banks put us through with all the loans and to pay with credit. Vicious people and the worst pyramide scheme ever, Bernard Madoff is nothing compared to these guys.

[lizarder]

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.

Back again to each individual, whether the loan is taken for business support needs or just to fulfill a lifestyle. When an impact has been carefully considered and adjusted according to needs, then a loan may be something that is needed for business development, for me this case is not bad. Loans have two alternatives in my opinion?

1. Active Loans
Active loans are usually taken for business needs and they have considered the number of needs with an adjusted timeframe, usually this form of loan has very few problems and most importantly loans like this can be used for something more useful.

2. Passive Loans
This kind of loan usually won't help people, because the purpose of taking a loan is not for business development or anything like that. More precisely, loans like this have no direction and purpose, only for non-urgent needs and following lifestyle.

I classify two forms of loans that I often see, of course there will be many references to loans and everyone may have their own perspective. In my opinion, we can avoid one form of loan and it also doesn't hurt to try if you have more Good goals.

[adzino]

Yeah, I get what you're saying. There are people that takes more loan from other to pay their current loans and then they get piled up by different loans, ending up drowning. Loans and debt can be a real pain and stress in your life if you're not careful. So, when borrowing, you got to make sure you've got a plan to pay it back on time, or it can get messy. If someone's stuck in that nasty cycle of taking loans from different sources to pay their current loan, they should stop and start making a budget, figure out which debts are most important, and try to pay more than the minimum amount when they can. Talking to a financial experts might help too. It's tough to break free, but with some discipline and a solid plan, it's totally doable.

[irhact]

Yes, you are right, taking a loan can have a bad impact on our habits and mindset, because when we are facing a deadlock in a problem that involves finances, it will be easy for us to take out a loan because currently applying for a loan is very easy and fast.
Of course there will be high interest if those who make loans cannot pay it on time, which is why actually taking a loan will sometimes add to the problems for the person taking the loan.

This totally depends on the individual taking the loan and the purpose of taking the loan. A business loan that will be used to assist a business and potentially increase the chances of that business bringing in profit or been successful is not a bad loan and you can't say the loan is making the business or individual that took the loan lazy. Instead it'll make them more proactive to be able to pay the loan.

When loans becomes bad or addictive is when the individual taking the loans wants to make use of fo it for their immediate financial problems and not as an investment or capital to their businesses. This set of individual with this mindsets could become addicted to the loans commonly in cases when they're easily accessible.

[xSkylarx]

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.

Well, the bank have some responsibilities too. If they gave you a loan that you were never supposed to get based on your income, then there are ways were you don't have to pay. For farmers in Norway you have to take loans if you want to upgrade your farm, the loan will be so expensive so they are not able to pay it back with their income because the prices of their goods are decided by some big players in the industry. And the farm is worth less then what they have in loan so that is also not a good option, but usually many farmers have secondary jobs. That is also a solution, work more, work harder, freeze in the winter (don't use money on heat), go in the forest and pick berries and mushrooms, fish in the ocean etc. 

But the it is really like you said, it is a vicious circle the banks put us through with all the loans and to pay with credit. Vicious people and the worst pyramide scheme ever, Bernard Madoff is nothing compared to these guys.

Also here in our country, most of the farmers that I've known have their farm land in a bank because they took a loan to just plant crops as they don't receive any help from the government, so they took a loan and are having a hard time paying it back. What's saddest is that if they hit with a storm, they are having a hard time getting up, which is why others lost their land, and they tend to work as construction workers as they don't have land to plant on anymore.

[Farma]

Yeah, I get what you're saying. There are people that takes more loan from other to pay their current loans and then they get piled up by different loans, ending up drowning. Loans and debt can be a real pain and stress in your life if you're not careful. So, when borrowing, you got to make sure you've got a plan to pay it back on time, or it can get messy. If someone's stuck in that nasty cycle of taking loans from different sources to pay their current loan, they should stop and start making a budget, figure out which debts are most important, and try to pay more than the minimum amount when they can. Talking to a financial experts might help too. It's tough to break free, but with some discipline and a solid plan, it's totally doable.

Well, if it's borrowing money to pay off other debts, it's unlikely it's an addiction, but it's probably stuck in the cycle. it happened because they borrowed more money than they could earn. finally, they will continue to borrow until they can pay off the debt.
maybe there are some people who are really addicted to borrowing because of their necessities of life, but I think this can be solved by increasing the income we have, or being really honest with the owners of the money so they replace it slowly. Cycles like this will be very difficult to stop if we have very little income.

[HajiBagi]

People take out loans for a variety of reasons, including starting a business, paying for schooling, or personal reasons. Even wealthy people take out loans; it is a common practice in society. What is problematic is when sluggish people repeatedly borrow money without having a plan for how to pay it back, becoming dependent on it.

Lending money to start a business is not a bad idea, but before doing so, keep in mind that you will have to pay the lender interest. People who borrow money from banks to start businesses typically have a plan A and a plan B or are aware of the type of business they will need to run in order to turn a profit and repay the loan before the specified deadline.
Some people believe that borrowing money is a bad thing, but in my opinion, doing so is not bad because many people have borrowed money to launch successful businesses. Therefore, borrowing money from a bank to start something worthwhile is a good thing.

[Doan9269]

Before we take a loan, we need to consider the needs for taking such decision beofre proceeding, also we nust not let taking loan be our priority or habit that we always do and get into us, those that often take loan make business with it and take their profits from it after repayment, this same people were not new investor or a business start up, they are people already in the system that need extra fun to push forward business bids on particular aspects.

[Pamadar]

Before we take a loan, we need to consider the needs for taking such decision beofre proceeding, also we nust not let taking loan be our priority or habit that we always do and get into us, those that often take loan make business with it and take their profits from it after repayment, this same people were not new investor or a business start up, they are people already in the system that need extra fun to push forward business bids on particular aspects.

We need that to acknowledge the needs and not just to use the money in spending into something that's not that important. Taking loans is a responsibility that we need to pay back.

If you use it just to buy something that's not really necessary, then expect that you needed to spare
portions of your salary to pay it back, else, you will keep repeating by taking more loans just to cover
that first loan that you did.

[jokers10]

I think borrowing money repeatedly won't be a problem if you pay it on time, but the problem here is whether the person who borrowed can be responsible for what was promised? Since we don't know what goes through someone's mind after borrowing money from you and the responsibility to repay it on time, I don't think everyone has a conscience when it comes to paying debts or repaying loans he has borrowed.

If we return to the first post in this topic and then look through entire topic we'll see that the problem we discuss is exactly about if some take loan, then have problems with paying it off and then take another loan to pay the first one and so on. If someone has no problems with loans, pay in time and supposes he is okay with taking loans all the time it is just his choice. But what can the one who has problems with his debt do? And we try to advise at least not to take new loans not to get into a debt hole even deeper and try to negotiate with a bank or go through bankruptcy proceedings.

It is so easy when you have no problems, but what if you have?

[Altryist]

We need that to acknowledge the needs and not just to use the money in spending into something that's not that important. Taking loans is a responsibility that we need to pay back.

If you use it just to buy something that's not really necessary, then expect that you needed to spare
portions of your salary to pay it back, else, you will keep repeating by taking more loans just to cover
that first loan that you did.

There are really stupid loans where a person has 11 iPhones and they take out a loan to buy themselves the latest model and they don't have the money to buy it, this is what I call stupid loans. But sometimes there are really difficult situations when a person is forced to take a loan, because he does not have money in order to solve the problem that has arisen. And although I am also against such loans, but in a certain situation you don’t have to choose.

It is necessary to try to have some kind of savings in order to have a safety net for such situations, not everyone thinks about it.

[jokers10]

...
It is necessary to try to have some kind of savings in order to have a safety net for such situations, not everyone thinks about it.

It is impossible for everyone to think the same way. Moreover it is bad for society in general as diversity gives our species lots of advantages. So there always will be people who don't save for a rainy day, they just have a different type of temperament. But it doesn't mean they will necessarily fall into a debt hole, they can know how to deal with their style of life. And those who have savings can be caught in the loan trap as well, and moreover they usually have less clues how to get out of it and are less prepared to the situation.

If it is not a matter of literally life and death it is usually better to try to solve any problem without a loan. Loans can be not so bad when everything is great and there can be more development, and you can easily pay up.

[Kodok Bencot]

I think so, nowadays it's too easy to find a loan because of the presence of online loan applications, in my country to borrow $2,000 worth of money, just send identity and selfie, and within a maximum of 3 days the loan amount will be accepted, but with the ease of the loan, interest must be paid very high.

[BVeyron]

I think so, nowadays it's too easy to find a loan because of the presence of online loan applications, in my country to borrow $2,000 worth of money, just send identity and selfie, and within a maximum of 3 days the loan amount will be accepted, but with the ease of the loan, interest must be paid very high.

Actually there is a problem of loan addictions, it's like gambling: people get what they want to have, then they pay properly, then they take one more credit, and so on... And at some point this person experiences problems with money loss (either problems with job, or other problems which need much money to solve), and then in order to pay the debts he or she needs to take actions in a hurry, which lead to even more money loss: they start selling houses/cars/business projects in really short periods of time, which makes them get less money for selling their belongings and property. This economic activity makes people gamblers, though most such gamblers don't even understand it and think that everything is stable.

[CarnagexD]

Actually there is a problem of loan addictions, it's like gambling: people get what they want to have, then they pay properly, then they take one more credit, and so on... And at some point this person experiences problems with money loss (either problems with job, or other problems which need much money to solve), and then in order to pay the debts he or she needs to take actions in a hurry, which lead to even more money loss: they start selling houses/cars/business projects in really short periods of time, which makes them get less money for selling their belongings and property. This economic activity makes people gamblers, though most such gamblers don't even understand it and think that everything is stable.

Right some people use loan as their coping mechanism for stress because they wanted to buy something they can't afford. They continue to take out loans even when they don't need them or when they can't afford to repay them that leads to a cycle of debt and financial instability.

It is somehow the same with credit cards, it provide a sense of instant gratification and allow people to purchase things they might not be able to afford. Credit card companies also often offer incentives and rewards for using their cards which encourage people to use them more frequently. Tho I think borrowing money and credit card are different things because credit card addiction tends to involve smaller, more frequent purchases, while loan addiction often involves larger, more significant purchases such as a home, car, or personal loan. Regardless, those are both borrowed money. We should only borrow money if we are already expecting something that we can pay for it or we are just maximizing the time value of money.

I think so, nowadays it's too easy to find a loan because of the presence of online loan applications, in my country to borrow $2,000 worth of money, just send identity and selfie, and within a maximum of 3 days the loan amount will be accepted, but with the ease of the loan, interest must be paid very high.

We have that kind in our country. So many ways online where we can borrow money and just have to provide IDs. I usually doubt its fast approval that's why I haven't tried it yet asde from the fact that I don't feel the necessity, but a relative of mine tried once. She borrowed money and then the next  week she paid for it, now she is allowed to borrow greater amount.

It's true that they charge higher interest rates than traditional lenders, particularly if you have poor credit. And since online loans are so convenient and accessible, it is easy for people to overborrow and take on more debt than they can afford to repay. I even think that some online loan is a fraud, so it's important to do your research and choose a reputable lender, and only borrow what you can afford to repay.

[wmaurik]

This work will always follow someone's every decision, it's true that if we often take loans this will continue to make them addicted to this, and of course with the current options that are easy for them to make loans easily and the terms are not too complicated, some individuals will be tempted by this, and they give it in a practical and easy way, because this will continue to cause them to be addicted to this, and maybe that will become a problem later in terms of the interest they will face.

Putting too much addiction on loans will also not be too good for yourself because living with always being filled with loan pressure will also not make every individual feel comfortable. Now don't just think about the ease of taking a loan, but also have to think about the ease of paying it, because when someone can't easily pay off a loan that he has made, it will actually make his life more difficult because he already has additional obligations to pay it off besides primary responsibility for the necessities of daily life.

[Pamadar]

We need that to acknowledge the needs and not just to use the money in spending into something that's not that important. Taking loans is a responsibility that we need to pay back.

If you use it just to buy something that's not really necessary, then expect that you needed to spare
portions of your salary to pay it back, else, you will keep repeating by taking more loans just to cover
that first loan that you did.

There are really stupid loans where a person has 11 iPhones and they take out a loan to buy themselves the latest model and they don't have the money to buy it, this is what I call stupid loans. But sometimes there are really difficult situations when a person is forced to take a loan, because he does not have money in order to solve the problem that has arisen. And although I am also against such loans, but in a certain situation you don’t have to choose.

It is necessary to try to have some kind of savings in order to have a safety net for such situations, not everyone thinks about it.

That's the accurate explanation with stupid loans, something that you really can't afford, but you wanted to look like you can have it and only taking loans is the way to have it.

With a kind of mindset and without a stability of having a high-paying job, the chance of making more loans
to cover your debt is the next thing to expect.

You need to be more practical in terms of your lifestyle if you want to avoid being attached or addicted to
having loans.