Debt Management.

[poodle63]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

consumptive debt is really a disease in every person's life its just gonna make living a hell, never crossed my mind to have debt just because buying some random luxurious expensive thing that just gonna have no value within a decade thats definitely not a good idea but seeing current trend so many people are willing to take on such debt just because they can, definitely not a good way to go when we are trying to accumulate wealth and spending unnecessarily for debt + interest, this means some sum of wealth off our bank account and also means harder life moving forward.
I do agree people should control themselves from having debt in the first place if they can, if we are talking about taking up on a loan just because emergency thing and we all know entrepreneur need a loan exactly for that then its fine as long as its calculated.
but being consumptive and buying all those luxurious thing with a loan definitely can only be done by someone who tries to make their life miserable, always take loan responsibly that is the key.

[1715259613]

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[1715259613]

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[Apocollapse]

@OP thinks he's Robert Kiyosaki .



I still see many users saying it's good to borrow money for business and also in other medias we will heard that too, but actually borrowing money for business is also bad. The reality is you can start your business as small as possible, start from your house and only buy the tools or materials that you need. If the business need certain amount of capitals, you can create a proposal and submit it to investors, or you can find venture capitals that willing to invest in your business.

[Bitco55]

@OP thinks he's Robert Kiyosaki .



I still see many users saying it's good to borrow money for business and also in other medias we will heard that too, but actually borrowing money for business is also bad. The reality is you can start your business as small as possible, start from your house and only buy the tools or materials that you need. If the business need certain amount of capitals, you can create a proposal and submit it to investors, or you can find venture capitals that willing to invest in your business.

In reality, it isn't really that easy my friend. Getting venture capitalists involved is even worse than actually taking a loan or burrowing. You see when sales don't meet up, the venture capitalist doesn't care, all he wants is his interest at the end of whatever agreed period you two have. This can also make you go bankrupt too.

You see, I also used to have this mindset, " I just have to save, I can do it with my money" but I learned in Economics class that people who usually go into businesses actually earn on other people's money.
70% loans and 30% of their income. Now, isn't people who lend tis money want to be paid in different ways. Some want a percentage of the business earnings others want to be paid back their money with a specific interest after some time. You as the owner of the business just have to make sales and keep reserves. Going into debt is usually because these businesses can't manage their earnings properly. Isn't it logical to fill up reserves for debt payment first before you start earning from your business?

If you start and continue business with your own money, there are a lot of opportunities you'd miss out on, and you may never get to expand. So burrowing is very important in the concept of business, we just have to manage it properly.

[Uhwuchukwu53]

I agree with you, I am not a party to loan but don't see it as bad one but loan is best taken when you have good job that can cater for it in case of necessity to remit back or best way is to mortgage our income or salary where the effect will not course you much harm.

People don't take loan for pleasure except there is people of such that I Amy not account, those that fully involved in it have one reason or the other for such, just as many has started any loan taken  has it purpose, and  should not be override or rule out to avoid the consequences of inflation only those that don't know the purpose of a thing can abuse it.

Loan has help many to them that know it value and has also curst sorrow to them that felt it's of pleasure do as others does without any purpose for it.

 life is two sided the way you choose that work for you may not work for another , my opinion is that who ever that take loan shouldn't take because others take let, it's motives should be achieved to avoid hard I know at the end.
In everything moderation is necessary despite the purpose for loan one must be able to manage the process before it gets at of hand and become uncontrollable situation.

[lovesmayfamilis]

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes.

This is not an excuse. All investment ideas should include free money that will not affect your standard of living, especially the life of the person or organization that lends you the money. The fact that you don't have money to invest is just your problem; you need to learn how to solve it yourself. After all, things may not go according to plan, and you don't know what will happen tomorrow. I don't know the term "debt management." But I have heard the term "public debt management" or, ultimately, some kind of organization. You, OP, are confusing concepts by complicating the post with pretentious words. A normal person needs to learn to live without debt, and only after that should they think about some kind of investment, nothing more.

[God bless u]

The solutions you have suggested are quite good and implementation of these might lower the risk of the mishaps that happens during the debt management but the point here is that the risk and uncertainties can't be avoided.

The biggest problem in debt with interest is that the compound interest which most of the banks work on while giving loans multiplies with the tenure selected. It will not see what your problems are. It will not see whether you have got the money right where you wanted Or not. It will not see whether you've invested right or nor rather it will just multiply.

[mindrust]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

Debt could be a good asset instead of being a liability if you are smart about what you are doing. Last year the interest rates in my country were so low, you would actually lose money if you didn't take any loans. Since the rates were much lower than the inflation, the prices of goods rose even faster because of that. Everybody was borrowing all the money they could at that time. Normal people bought silly stuff with the money they got from the banks. Smarter people made investments; bought stocks, crypto, gold with it. Some even expanded their business and increased their capacity. These people made a killing thanks to that cheap money. (I made my fair share too)

[Cryptomultiplier]

There is no good reasoning behind thinking that one must take out loans and be indebted to invest in an asset that is expected to bring double returns. That's just greed.

Anyone willing to be wealthy and not in debt should first learn to live very contentedly with whatever it is they currently earn, before the thoughts of saving and looking for other ways to save, so as the urge to touch the funds would be countered.

It is while trying to be something we are not or trying to conform to the standard of others living that we often times go as far as borrowing to cover cost and that begats many other children ones one has learnt how to start borrowing to get out of problems.

Avoid bad company of friends who may cajole you to spend past your normal limits and take out loans just to belong to their company. They are part of debt crisis contributors that we should avoid at all cost.

[pooya87]

I still see many users saying it's good to borrow money for business and also in other medias we will heard that too, but actually borrowing money for business is also bad.

I agree that it is also bad for businesses to start with loans but at least it makes more sense that way because you are at least running a business and are just taking bigger risks. And if you are good at it and can succeed in your business, you can both pay back the loan and make good profit.
Considering how there are good number of successful cases, I dare say this is not the worst thing to do.

[bluebit25]

Debt can be considered an invisible disease that builds itself into our lives and causes us financial, mental and relationship troubles. Constantly relying on credit is no different than being addicted to drugs - it is very likely to become a habit immediately and will slowly but surely destroy your ability to control your money.

Better yet, we should aim for a frugal lifestyle and stay away from debt, especially loans for consumption needs. Debt should only be considered for business development purposes, but should also be carefully calculated and carefully managed to ensure efficiency and avoid risks.

When you run a business, good debt management is a key determinant of financial stability and predictability, allowing you to achieve your financial goals while maintaining a level of security. current finances. The problem is that it is not always that simple and one must be careful enough not to be trapped by certain consequences if the issue is not taken seriously enough.

[Orpichukwu]

I still see many users saying it's good to borrow money for business and also in other medias we will heard that too, but actually borrowing money for business is also bad.

I agree that it is also bad for businesses to start with loans but at least it makes more sense that way because you are at least running a business and are just taking bigger risks. And if you are good at it and can succeed in your business, you can both pay back the loan and make good profit.
Considering how there are good number of successful cases, I dare say this is not the worst thing to do.

Even if you are good at what you are doing—I mean, good at handling the business—I still see a very great risk in what you are doing. I mean, good at handling the business.
 
I still see a very great risk in starting a business with a total loan of money. If the person has a little start-up capital to start up a business and sees how the business is moving from there, they can move ahead to get a loan, which they can easily pay back based on the business progress and estimate. I see that as way less risky than starting up a new business with full loan money that has interest attached to it.

[Queentoshi]

The concept of debt management isn’t talked about often, this is why most people dwell so deeply in debt and they can’t afford to pay it off. In worst cases where the debtor can’t pay back, they tend to take their life, giving up so easily just in the name of frustration. Sometimes taking debt can be a way out for one, that's if you have an innovative mind and know how to utilize the resources given to you. Some people just don’t know how to manage funds, borrowing money to clear debt or to fund your lifestyle isn’t just the best idea infact, it’s just the beginning of your borrowing cycle. If you don’t have any reasonable plan then there isn’t any need to go for a loan.

Loan is something that cannot be easily avoided especially when the economic situations are very hard, and an individual is not earning enough to cover for their daily expenses. But before you request for a loan, make sure you already have planned in your head how to pay back so that the burden will be lesser. If you take loans without plans on how to pay back, you put yourself in a very difficult position because the money may be difficult to raise.

There are many people who have the habit of taking loans that they know that they will not be able to pay that is an example of irresponsibility.

[D ltr]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

This is what often happens in the community, because they prioritize their lifestyle, they are willing to do this to be called socialite, without thinking long about the effects it will have in the future,
The trend is the word for this kind of lifestyle in my country, life is difficult, elite style

[Dr.Bitcoin_Strange]

There's something that some people do that I don't even know what to say. I have seen many people and a few of my partners involved in such a habit. The habit I am talking about is "unending debts."  Some people find it very easy to collect loans, but they find it so difficult and terrifying to repay the loans that they have collected, so they keep on extending the loan and even taking more loans from other sources too. 

We know that this time around, the economy and cost of living are not as friendly as before; therefore, it is even more important now to cut down on costs and spend wisely with budgets. I understand that some people are faced with situations where they just need to take out loans, but what is important is that debt should be paid off as soon as the borrower gets back the money they were expecting to use and repay their debt. 

For example, something happened to me last year. Since I was into furniture business, I met someone who was into a similar business like mine but not really the same future business. He proposed a business idea to me, and I bought the idea. I did not have enough capital to fund that business idea, so I took out some loans to add up. I got so unlucky that the business did not flourish as expected, and as we speak, I ran 80% loss in that business. The man who proposed the idea to me has agreed to repay me the money I lost, so he is in debt to me. Meanwhile from my pocket, I have already repaid the loan I collected to fund that business.

Situations happen that make people to take loan, but it's wise for someone to just manage their budget and repay their loan. 

[Hamphser]

Do not borrow funds to clear debts

This is the problem that i have made out back in the past on which i have taking up some loan to pay up another loan on which this is the greatest mistake that i have done into my life.
The interest keeps piling and this is something that the hardest days in my life because it did really comes into a point that i havent been able to make myself able to pay up
on monthly basis. I did come or reach up into a point that banks had been calling me almost everyday and its really that something very stressful thing for me.
I cant really be able to sleep up well.

On the time that i did make up some solution then i have gradually be able to take out the shackles of debt. Its true that you would really be needing to be wise
for you to be able to get out of debt.

[SmartGold01]

Debt is something unavoidable circumstances, we can go into debt by either having much population in the family where our normal or monthly salaries doesn't long foot our bills or could be either we are living a kind of extravagant life, where we want to compete with people that is above us then certainly we can't escape debt. If we avoid being influence by friends then we can not live a life full with debt, but normally there are types of debt which involves taking loan. Taking about your yearly or quarterly income is a very risky thing to do because definitely it would affect our ways of living, where we could be striving our best to meet up life and as well trying to clear the debts we find ourselves into could be a challenging altogether. So we should be able to live within our standard than taking unecessary responsibility upon ourselves by leading us to start living debted life.

[dothebeats]

To add, it's way easier to borrow money from different lending apps these days, that the average Joe earning a little bit from his work will always be tempted to borrow and get himself into a huge pile of debt. Even if it's not something important, people nowadays will borrow money from these lenders and get themselves paying a huge interest. I guess the availability of such institutions somewhat fueled the interest of the population in getting into debt.

If I were these people, I'd borrow money only if needed, and reduce my spending until my debt is paid. Also, avoiding multiple loans at once is smart because it only pulls you further back rather than advance with your financial situation.

[Egii Nna]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

As it has been said, some people get into debt without knowing or due to emergencies, while others do so due to low income. Debt is like a disease that needs to be avoided, but to consider, many salary earners survive mostly on debt, and after they pay it off, they still borrow another one that is caused by the low income of the victim. As you mentioned, some people get into debt just to get what they want, which is the greatest mistake to make because even with the planning and budgeting, without consistency, it will never work out. That is why being consistent is also part of the plan. 
 
Moreover, for those that are most likely to get into debt, the solution for them is to fine more sources, which will sometimes still depend on the location that you are in, because if you are in a place where you can’t work in two different places just for the time zone occupied, or the work load, You can’t engage in two sources of income because you will be highly stressed, so working again might be hard to accomplish. 

Do not borrow funds to clear debts

This is the problem that i have made out back in the past on which i have taking up some loan to pay up another loan on which this is the greatest mistake that i have done into my life.
The interest keeps piling and this is something that the hardest days in my life because it did really comes into a point that i havent been able to make myself able to pay up
on monthly basis. I did come or reach up into a point that banks had been calling me almost everyday and its really that something very stressful thing for me.
I cant really be able to sleep up well.

On the time that i did make up some solution then i have gradually be able to take out the shackles of debt. Its true that you would really be needing to be wise
for you to be able to get out of debt.

This is what is called an addiction to more problems than the previous one, although it has already been a regret for you. But how on earth can you think collecting another fresh loan just to pay off the previous one can solve the puzzle? No, it can never happen that way, which will only increase your debt, or you will continue to stay in the same position without moving because you have created a critical problem for yourself that might come up with some health issues for you again, like depression and many other health issues. 
 
Because when trying to collect another loan to pay the previous one, you will want to add more, and after you have paid the debt, you will still have some funds left to do other things. Instead of solving an issue, you have directly increased the number of issues because, if you know you can’t pay the outstanding debt, why collect another one? Although it has been a while, I know even you yourself will not like to be in that situation again. 

[Iroh]

Having debts is never pleasant. It’s so easy to take and accumulate them but so so difficult to pay up the full amount when it’s due. And for someone with a single income, it can be detrimental. It doesn’t really matter if the income is steady, you’ll always have the burden of parting away with some of your money to service a debt.
It’s advisable never to be in debt but obviously, issues arise that needs to tackled immediately and for some, there is little option than to go borrowing to quell such issues.

The problem is that people don’t borrow unless they really have to. They do so out of fulfilling a desire or a want and end up with debts. Debts they cannot be able to comfortably pay back when it’s due cause of their spending habits.

[oktana]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

Honestly, I don’t remember ever falling into debt because I don’t go for something that isn’t on the same level as my pocket. Indeed, if we want to start digging, the debts are normally coming from things that one can live without. But everyone doesn’t think the same so while you’re thinking you shouldn’t be in debt, someone thinks their debt isn’t really a lot and is considering taking more. I can’t imagine spending future money in the present.