The savings problem

[kawetsriyanto]

It happens when we immediately make a new application in a loan when we have paid off the previous loan but if the loan is made in a certain interval (stop first) after the previous debt is paid off then it will still be a little difficult for a new application even if we already have a fairly good track record in a loan.

I don't know what's the problem with the bank officer, but ideally you must be easier to get a new loan if you have a good track record. Here, the bank officer even persuade us to take a new loan soon after the old loan was successfully repaid. But I refuse the offer because I know it is like a loan trap made by banks. 

It happens where I live now but I don't know if it happens in other regions, countries or not because in the end policies like this seem to depend on where we live.

I think the bank system won't be so different in any where around the world. Each bank probably adopts the same system and mechanism. I don't see a big difference among the bank in the world.

I once accompanied one of my family members to pay off a debt to a bank and the bank that applied for the loan said that it would be a little inconvenient if they did not re-borrow after the current debt was settled because the process could take longer. That might just be a trap to keep us in debt but in the end it happened because after my family stopped borrowing for a certain period of time and re-borrowed again to the bank, the process was a little longer than before.

Sure, it is like a loan trap. But it is also a part of their business because they got money in that way. When you won't agree for another loan and stop temporarily, surely it won't be so easy to get a new loan in the future. They have the information that you weren't a loyal customer. So, they need to evaluate anything first before you have a new loan.

[franky1]

It happens when we immediately make a new application in a loan when we have paid off the previous loan but if the loan is made in a certain interval (stop first) after the previous debt is paid off then it will still be a little difficult for a new application even if we already have a fairly good track record in a loan.
It happens where I live now but I don't know if it happens in other regions, countries or not because in the end policies like this seem to depend on where we live.

I once accompanied one of my family members to pay off a debt to a bank and the bank that applied for the loan said that it would be a little inconvenient if they did not re-borrow after the current debt was settled because the process could take longer. That might just be a trap to keep us in debt but in the end it happened because after my family stopped borrowing for a certain period of time and re-borrowed again to the bank, the process was a little longer than before.

local bank branches dont hand you borrowed money.. loans create money out of no where.. the reason they want you to take out a second loan("re-borrow"). is because the cashier at the local bank branch makes commission for certain things..
EG they get more/EXTRA christmas bonus/commission if they can turn a settler into a borrower..
the day you visit them to settle. the human you pay the check to to settle doesnt get a commission for your settlement. they get commssion on selling you more debt. so he wants you to take out a loan with him instead of his colleague next month..
its like car dealerships. the salesguy you stand with wants the sale, he doesnt want you walking off and coming back next week to speak with a colleague of his and that colleague gets the deal

..

anyways,,
the secret to get out of the loan trap
a. stop taking out loans

b. how? well that is simple.
if one bad month you take a loan, but the next good month able to pay it off.. do the opposite.
on a good month.. where you are all settled up and not need another loan..
.. pretend its a bad month. and put the money you would have loaned/paid back a loan, into a second bank account you own. and hold it.
then when a real bad month happens.. you then treat your second account of your own money as the loan to yourself. where you use it for the emergency, but then repay yourself on the next good month, instead of taking out a loan from someone else and repaying someone else

c. but here is the thing, commit to yourself to repay yourself to refill your emergency fund(your own second account you loan to yourself)
treat yourself as your own loan officer needing to be repaid if you ever want to take out a loan from yourself again.. because loaning from yourself is a 0% interest and no debt collector will chase you because you also your own debt collector.
thus you then become the best bank in the world offering you 0% loans with no downside. so be committed to repay yourself and refill the emergency fund on the good months..
use the same energy/commitment of paying down a true loan to also be the energy/commitment to repay yourself in the same "fairly good track record"

[larry_vw_1955]

the secret to get out of the loan trap
a. stop taking out loans

here's another way to get out of the loan trap. stop paying them back. they'll stop giving you loans ASAP. and for a long time after that most likely. 

[FelixH]

I think governments will always keep taking care of the poor, so I don't think there will ever be a true problem.

[IvugeoEvolutionCoin]

This is really sad. Only those who are middle class can understand this well. Far from saving their wealth, most of the middle class people take loans from various NGO to meet their needs and at the end of the year they find themselves entangled in another loan while repaying their loan. Thus it keeps coming back in cycles. Later, they cannot accumulate wealth through this. If the money is not invested in a good place at the end of the day then it is never possible to achieve solvency And it is not possible to go to the dream future. So in this case one must be careful in earning and spending money.

Those who are middle class have to face many problems to live a good life. Those who take loans from NGOs are under a lot of pressure. The money they get at the end of the month ends up paying their NGO loans. So because they don't have much money in hand.  It is a lot of trouble to live a good life and can't save any money.

[Agbamoni]

the secret to get out of the loan trap
a. stop taking out loans

here's another way to get out of the loan trap. stop paying them back. they'll stop giving you loans ASAP. and for a long time after that most likely. 

Funny suggestion but i look at it the other way it would work. They will definitely stop to give out loan to loan defaulters. But just know that they will also come for you so that you can pay back the loan they won't let you go free. If not i would have buy the idea.

I think governments will always keep taking care of the poor, so I don't think there will ever be a true problem.

In what country is the government taking care of the poor?  In my country the government cannot help the poor and so it is in other countries. I would love to know where you are from?

[Mao Sama]

the secret to get out of the loan trap
a. stop taking out loans

Very funny advice 🤦‍♂️ But that's not a good solution. Because it will invite a lot of hatred and distrust from everyone's view of ourselves.
Maybe here I can come up with a better solution. That is try to make an agreement when it will be paid. If there is a possibility that there is something else suddenly that we have to postpone the payment of debt according to the agreement. Then talk to the person who gave the loan. Sometimes not everyone can accept this kind of negotiation well. But if we are negligent and delay payment. Usually someone will not give another loan. But that doesn't mean not to pay the loan. It's just someone's sense to delay payment. If this loan is made with people around us or our friends. If the loan is with a bank or online loan. Maybe it can be in another way.

[Gormicsta]

I can tell about this problem by observing how most people live in my country. Loans for almost everything force people to work seven days a week. Closing one loan, another opens, and people live in debt without free money that could be invested. From here, it is noticeable that people are in a hole of debt, regularly saving every penny.
But yes, our desires do not end, and we can say that we can stop everything, but the pace of life and the developed habit of earning money practically do not allow people to stop and think that they can live differently.

In regards to government assistance, one approach that may help people escape a life of debt is the introduction of financial education programs. These schemes might teach individuals about financial management, managing their debts, and other financial ideas that will help them make better money decisions. Furthermore, the government may consider introducing laws that make it simpler for people to get inexpensive credit, such as subsidized financial assistance or additional monetary assistance programs.
Another alternative may be to promote business ownership and job development, giving individuals greater possibilities to grow their income and escape the cycle of debt. If more individuals had access to solid employment with fair compensation, it may help anyone get away from debt and accumulate their savings.

[Youngkhngdiddy]

  Most people advise you to live below your means, pay off your debts, save money, and such nonsense. Well, this approach is from a scarcity mentality. It is taken from the assumption that money is scarce. How can money be scarce when there’s plenty of it in the pockets of people who have plenty of problems you can solve? Ok, where will you get money to pay off your debts and save money? I mean how do you live below your means when you want to enjoy life just like everyone else? We all have one life, don't we? And that life is short, isn't it? Instead, why don't they teach you that there's enough money for everybody and if some people weren't as greedy as they are, we would all have financial independence and no one would lack anything. They don't want you to know. That's why they don't teach you about money at school and at home. Your parents don’t teach you because nobody taught them in the first place. They were taught that money would distract them from learning. They were taught to study hard, get good grades, get a high-paying job and a pension book, and retire on pension at 60 or 65. And so, the subject of money and financial independence has been made a “taboo” subject. Don't discuss it at school, don't discuss it at home, and don't discuss it at dinner table.
  Interestingly, the subject of going to school in order to pass with high grades so as to get a high-paying, secure job, is at the forefront of every discussion whether at home or at school. Yet, everybody knows that jobs aren't easy to get nowadays. Even if you happen to get one, you are basically trading your time for money and becoming someone’s slave mentally and physically. The system has been rigged from the start. In fact, it was rigged in the 19th century during the Industrial Revolution. Schools were introduced to provide the labor market with an endless supply of labor to work in the industries of the rich. Well, those who work extremely hard are in the factories and in the trenches. The problem is that schools are job-oriented. They teach you to graduate college in order to get a good job. The problem with getting a job is that it imprisons your mind so that you don't think for yourself. I’m not trying to bash schools. Schools are necessary but not in the way they're used today. There's need for schools to be reformed.

[Hamphser]

I can tell about this problem by observing how most people live in my country. Loans for almost everything force people to work seven days a week. Closing one loan, another opens, and people live in debt without free money that could be invested. From here, it is noticeable that people are in a hole of debt, regularly saving every penny.
But yes, our desires do not end, and we can say that we can stop everything, but the pace of life and the developed habit of earning money practically do not allow people to stop and think that they can live differently.

In regards to government assistance, one approach that may help people escape a life of debt is the introduction of financial education programs. These schemes might teach individuals about financial management, managing their debts, and other financial ideas that will help them make better money decisions. Furthermore, the government may consider introducing laws that make it simpler for people to get inexpensive credit, such as subsidized financial assistance or additional monetary assistance programs.
Another alternative may be to promote business ownership and job development, giving individuals greater possibilities to grow their income and escape the cycle of debt. If more individuals had access to solid employment with fair compensation, it may help anyone get away from debt and accumulate their savings.

Livelihood programs and other government programs are really that something that could aide but only it would really be just that only good for a small numbers or % of the entire population on which it would really be prioritizing those poorest of the poor. If you are someone whose living on standard to poor condition then you would be unlikely be able to get those kind of aide from the government unless if you are that eligible on getting those support or not. If not, then it would be something means that you would really be needing to work your ass off hard even more to have that kind of progressive life you do have.

Savings would comes from the extra funds that you do have left on your income on which it would really be something hard considering that economic conditions or situation that we do
face today is something that could cause that hardship on which we know that this is something that you should really be focusing on.

[DubemIfedigbo001]

This further validates the uselessness of fiat, day by day liquidity affects fiat leading to further devaluation and lack of purchasing power. Savings is still possible even till this day, but its better not in fiat, because of its lack of appreciation and decline in purchasing power.

The answer to competing with those cited by OP and even doing more is presented to us on a platter of gold for those who're wise enough. Wise and profitable investments is the way forward. Investments in bitcoin, real estate, agriculture and renewable energy, gold etc is the way to safeguard our fiat savings from constantly depreciating as these are always appreciating in value.

local bank branches dont hand you borrowed money.. loans create money out of no where.. the reason they want you to re-borrow. is because the cashier at the local bank branch makes commission for certain things..
EG they get more/EXTRA christmas bonus/commission if they can turn a settler into a borrower..
the day you visit them to settle. the human you pay the check to to settle doesnt get a commission for your settlement. they get commssion on selling you more debt. so he wants you to take out a loan with him instead of his colleague next month..
its like car dealerships. the salesguy you stand with wants the sale, he doesnt want you walking off and coming back next week to speak with a colleague of his and that colleague gets the deal

Definitely, banks and loan sharks enjoy giving out loans because it enables them to properly prey on your own money. That's why you see most of them increasing your credit margin the more you borrow, to further seduce you to continue being in their trap and never get free. Most people make money for banks and loan sharks because their entanglement with loans deprives them of utilizing their funds for themselves. Its more like they work hard for the loan companies benefits and its such a pity.

b. how? well that is simple.
if one bad month you take a loan, but the next good month able to pay it off.. do the opposite.
on a good month.. where you are all settled up and not need another loan..
.. pretend its a bad month. and put the money you would have loaned/paid back a loan, into a second bank account you own. and hold it.
then when a real bad month happens.. you then treat your second account of your own money as the loan to yourself. where you use it for the emergency, but then repay yourself on the next good month, instead of taking out a loan from someone else and repaying someone else

c. but here is the thing, commit to yourself to repay yourself to refill your emergency fund(your own second account you loan to yourself)
treat yourself as your own loan officer needing to be repaid if you ever want to take out a loan from yourself again.. because loaning from yourself is a 0% interest and no debt collector will chase you because you also your own debt collector.
thus you then become the best bank in the world offering you 0% loans with no downside. so be committed to repay yourself and refill the emergency fund on the good months..
use the same energy/commitment of paying down a true loan to also be the energy/commitment to repay yourself in the same "fairly good track record"

Impressive, this is a very efficient financial advice and one that needs immediate implementation. This can help someone get back to accumulating his own funds and staying off the hooks of getting loans. It still requires discipline to continue paying yourself and refilling your second account after a successful self borrowing. I also think you need to involve a third party maybe your partner or close friend at least to apply little pressure on you so that the cycle is not broken, thereby put you at a disadvantage on bad months.

[ChiBitCTy]

There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.

But another less often talked about issue is that almost nobody is able to make savings anymore.

Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.



So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.

Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though "trickle down economics" has failed humanity.

So, do you agree that radical changes are needed?

Decling birth rates are a great thing for this planet and no one will ever be able to convince me otherwise.  That's also not the issues with SS.  The issue is corruption.  The government doesn't handle money properly (any government, all governments..take your pick).  They all lie about everything, spend money on shit needlessly and worst of all, the killer of all..WAR.  Imagine what we could do as a world if we stopped fucking fighting.  I also wish most people knew it's our gov's not the people behind this crap.  As an American I always remind my foreign buddies that I hate my gov probably more than they do, and that I want nothing but peace.  The US spends more on it's military each year than the rest of the world combined.  That is so ass backwards it sickens me to even think about. 

For the rest of the world, I feel that too much socialism is the problem.  Also the whole buying a home thing is more so a problem of big corporations and foreign nations buying homes and becoming slum lords.  Driving prices up on rent as well as making the buyers market a disaster.  It's really sad the way things have been headed.  However most of my friends, with good, medium and okay jobs are still finding ways to buy homes.  So it's not as bad as some make it out to be.

I encourage my clients to invest as if SS wont be there.  I actually have a friend coming over shortly to help set up a portfolio for her, and will be echoing this same thing to her tonight.

[junder]

Those who are middle class have to face many problems to live a good life. Those who take loans from NGOs are under a lot of pressure. The money they get at the end of the month ends up paying their NGO loans. So because they don't have much money in hand.  It is a lot of trouble to live a good life and can't save any money.

maybe the problem lies in each person's finances being different, because of course there are people who do have sufficient income and can save some of the income they earn, and with those who have stable finances they should be able to save because it is for their own good themselves in the future too. because of course we have to be able to prepare for our future, by working hard to be able to make money and save for the future if we really want a good enough future.

and for those who can't save maybe because they don't have stable finances. with unstable finances where it is possible that their needs are always lacking because their income is limited, it is not surprising that they cannot save, the problem can still be fixed, they must be able to work harder by looking for additional work or part-time work to improve their finances so they can save for their future. and maybe every once in a while they can take out a loan to meet their needs and maybe that will be a pressure for them, but that's how life is, we have to fight as best we can to survive.

[Mahanton]

I can tell about this problem by observing how most people live in my country. Loans for almost everything force people to work seven days a week. Closing one loan, another opens, and people live in debt without free money that could be invested. From here, it is noticeable that people are in a hole of debt, regularly saving every penny.
But yes, our desires do not end, and we can say that we can stop everything, but the pace of life and the developed habit of earning money practically do not allow people to stop and think that they can live differently.

In regards to government assistance, one approach that may help people escape a life of debt is the introduction of financial education programs. These schemes might teach individuals about financial management, managing their debts, and other financial ideas that will help them make better money decisions. Furthermore, the government may consider introducing laws that make it simpler for people to get inexpensive credit, such as subsidized financial assistance or additional monetary assistance programs.
Another alternative may be to promote business ownership and job development, giving individuals greater possibilities to grow their income and escape the cycle of debt. If more individuals had access to solid employment with fair compensation, it may help anyone get away from debt and accumulate their savings.

Livelihood programs and other government programs are really that something that could aide but only it would really be just that only good for a small numbers or % of the entire population on which it would really be prioritizing those poorest of the poor. If you are someone whose living on standard to poor condition then you would be unlikely be able to get those kind of aide from the government unless if you are that eligible on getting those support or not. If not, then it would be something means that you would really be needing to work your ass off hard even more to have that kind of progressive life you do have.

Savings would comes from the extra funds that you do have left on your income on which it would really be something hard considering that economic conditions or situation that we do
face today is something that could cause that hardship on which we know that this is something that you should really be focusing on.

Dont make yourself that be reliant with government aids or somewhat such as this because if you do put up yourself on such condition then you would really be definitely be having big problem because
if you do find yourself that been depending into those aids then you wont really be that having any progress into your life and this is something that you should really be changing up that kind of life or mindset you do have.
Never ever make yourself on having that kind of approach into your life because there would really be no progress t hat you could get if you do have that kind of approach.

This is why if you do find yourself that not having that kind of opportunity then you should really be doing your very best on trying out to achieve on things on which you would really be having
that kind of approach on things if you dont really like on staying up on what you are now because you are the ones who would really be leading up your life for the betterment.

[Hamphser]

I can tell about this problem by observing how most people live in my country. Loans for almost everything force people to work seven days a week. Closing one loan, another opens, and people live in debt without free money that could be invested. From here, it is noticeable that people are in a hole of debt, regularly saving every penny.
But yes, our desires do not end, and we can say that we can stop everything, but the pace of life and the developed habit of earning money practically do not allow people to stop and think that they can live differently.

In regards to government assistance, one approach that may help people escape a life of debt is the introduction of financial education programs. These schemes might teach individuals about financial management, managing their debts, and other financial ideas that will help them make better money decisions. Furthermore, the government may consider introducing laws that make it simpler for people to get inexpensive credit, such as subsidized financial assistance or additional monetary assistance programs.
Another alternative may be to promote business ownership and job development, giving individuals greater possibilities to grow their income and escape the cycle of debt. If more individuals had access to solid employment with fair compensation, it may help anyone get away from debt and accumulate their savings.

Livelihood programs and other government programs are really that something that could aide but only it would really be just that only good for a small numbers or % of the entire population on which it would really be prioritizing those poorest of the poor. If you are someone whose living on standard to poor condition then you would be unlikely be able to get those kind of aide from the government unless if you are that eligible on getting those support or not. If not, then it would be something means that you would really be needing to work your ass off hard even more to have that kind of progressive life you do have.

Savings would comes from the extra funds that you do have left on your income on which it would really be something hard considering that economic conditions or situation that we do
face today is something that could cause that hardship on which we know that this is something that you should really be focusing on.

Dont make yourself that be reliant with government aids or somewhat such as this because if you do put up yourself on such condition then you would really be definitely be having big problem because
if you do find yourself that been depending into those aids then you wont really be that having any progress into your life and this is something that you should really be changing up that kind of life or mindset you do have.
Never ever make yourself on having that kind of approach into your life because there would really be no progress t hat you could get if you do have that kind of approach.

This is why if you do find yourself that not having that kind of opportunity then you should really be doing your very best on trying out to achieve on things on which you would really be having
that kind of approach on things if you dont really like on staying up on what you are now because you are the ones who would really be leading up your life for the betterment.

Savings problem is actually that caused by several reasons;

1. Non sufficient salary
2. Too much expense
3. Lots of responsibilities and priorities

Which these things would cause up for you to have that kind of shortage on which this is something that you must really be that facing or everyone is really that facing.
If you are really that indeed having a job which does only give out that basic pay then you would really be definitely be having that kind of struggle on which this is something
that you would really be needing to make adjustments if needed because if not then you would really be that having that struggle.

If you would really be needing to work extra then you should or must do, because we are living in a world where economic conditions become even more shittier
as the years passing and this is something which is inevitable.

[Tmoonz]

Saving can be very challenging especially for those who prioritize extreme satisfaction, yeah irrespective of how small your income can be there is need to save as little as possible, for savings also saves as a safety net for future purposes, reducing ones budgets and expenses can as well be helpful in terms of ensuring that there is a little saving even at the expense of satisfying your needs by not buying things that might not be necessary. No one can be young for ever neither is any going to be working for ever so having a good culture of savings habit makes a better preparations for the future and it should be encourage.

[batang_bitcoin]

Saving can be very challenging especially for those who prioritize extreme satisfaction, yeah irrespective of how small your income can be there is need to save as little as possible, for savings also saves as a safety net for future purposes, reducing ones budgets and expenses can as well be helpful in terms of ensuring that there is a little saving even at the expense of satisfying your needs by not buying things that might not be necessary. No one can be young for ever neither is any going to be working for ever so having a good culture of savings habit makes a better preparations for the future and it should be encourage.

Those that have other priority than of themselves will have hard time in saving and that's why they cannot do it. Instead of what they should focus is only themselves, if they're putting their family first, they can't save. But those that are only for their pleasure will have hard time into savings and how much more if they can't save and someone tells them to invest, I don't think that they'll get over that. The hardship of life will teach them how to.

[MissNonFall9]

In the present times, the demand of people for everything has increased as well as increasing awareness and increasing the number of traveling people from one country to another country for endless entertainment. In such a situation I think people's proportional increase in demand may lead to poor purchasing power. And even a few decades ago, people were not as worried about their future as the younger generation of today. After that, there is no hesitation in admitting that the economic situation has worsened. So a lot of changes are needed for the development of the world.

[EarnOnVictor]

Saving can be very challenging especially for those who prioritize extreme satisfaction, yeah irrespective of how small your income can be there is need to save as little as possible, for savings also saves as a safety net for future purposes, reducing ones budgets and expenses can as well be helpful in terms of ensuring that there is a little saving even at the expense of satisfying your needs by not buying things that might not be necessary. No one can be young for ever neither is any going to be working for ever so having a good culture of savings habit makes a better preparations for the future and it should be encourage.

Those that have other priority than of themselves will have hard time in saving and that's why they cannot do it. Instead of what they should focus is only themselves, if they're putting their family first, they can't save. But those that are only for their pleasure will have hard time into savings and how much more if they can't save and someone tells them to invest, I don't think that they'll get over that. The hardship of life will teach them how to.

That is a good one. I pity those who can't save simply because they have too many dependents, it is a pathetic living and story for them. Before they were able to be done with the dependents, time would have gone, and the zeal and energy to work could have left them in most cases. That is why you see some people building a single house for more than 10 years, and it could be completed towards the time of their retirement, this is just unfortunate. At times too, if they are spending their money on good people who later make it in life, it is a good one for them as at times having a dependent you take seriously today is a huge investment for you tomorrow.

Well, notwithstanding, whether we have dependents or not, we should try as much as possible to save no matter how little, it will go a long way to help us. It is good to have a future plan no matter what because the future is always dark, we should not let it be darker for the lack of plan and saving towards it. If there are possibilities of investment as well, one should take it as I love to hear of investment than savings. Only that investors should be wise to invest rightly.

In another dimension of thought and above it all, anyone who is finding it difficult to save should know they have an income problem. This is the source of their issue, so solving it from the source is mostly advised here as well instead of complaining or blaming it on something always.