Debt Management.

[GeorgeJohn]

The reason why some people continue to be a debtor is that they don't actually know they are financial capacity before they obtain loan, so therefore I believe that for we to become a debtor is because we don't know they gravity of our receiving income, so what I'm trying to say that before you take a loan you should know your ability to repay the loan because some people does not repay their loan when they collected loan from people, for me it is bad for someone to not be a sincere, so if you know it will take you long time for you to repay your loan it should be better for you not to take loan.

To be a debtor is very big disease and I cannot acknowledge such that somebody should continue to be a debtor through loan, it is better for we to strategize very well so that we cannot be taking loan from people it is when you are in need of capital to support your business is when it is advisable for someone to take loan, but takingoan constantly I don't think that is encouraging and supportive for me, in summary take a loan that you can easily repay and free yourself for public embarrassment.

[btc78]

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

[Fortify]

Borrowing or taking loans is not bad but being a debtor is where the problem lies. What I'm trying to say is that, it's normal to be in need and borrow when you lack, but owing for too long or not being able to clear your debts at the appropriate time, is the problem and can be very embarrassing. Now that's where Debt management comes in, Debt management to my understanding is a process where by one plans strategic means of attending to their debts thereby avoiding numerous debts and be debt free.

 Dept Management is something every human is supposed to be aware of so as to help tackle the problems of being a debtor. Left for me, one who is in debt is like a slave and is bound to face being embarrassed if not they don't apply debt management. That's why before one should take loans, there are many things that's need to be considered. However here are the necessary steps people should take to become debt free;
 Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Avoid spending beyond your budget: this is also another way of debt management because when you spend only what you can afford, it would help you from being a debtor cause you'll be more focused on things you need.

Do not borrow funds to clear debts: doing that automatically makes you acquire more debts and it keeps accumulating because you won't seize to acquire outstanding debts, it would continue to go in cycles until you work hard to earn and become totally free.

Clear debts on time : no one is above being in debt, however one shouldn't settle with being known for a debtor, it brings embarrassment and could cause emotional trauma, therefore one needs to keep tracks of their dept and work on paying them off, beginning high interest debts down to minor ones, needs to be strategic with clearing their debts.

Right choice of investments: investmenting on the right business is just like saving for the future, cause you'll always have a financial support to fall back to, and also avoid taking loans, therefore the right choice of business would guarantee you have a safe heaven rely on instead of taking loans.

Make wise spendings: Consider your financial strength before purchasing items, purchase only items that are of needs not the ones that don't match your financial strength.

 Another way of debt management I could think of is to learn to make proper financial decisions, one should educate themselves financially about  investments and how to plan financially to be debt free.

                                    In Conclusion
 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.

One key thing that you seem to have overlooked and is a major fact in debt is the repayment rate on that debt. Choosing the right type of debt, or even your ability to access certain types of debt, can be a large factor in whether it is a good form of debt for you. Take mortgages for example, probably the only wise form of long term debt that you should take on if the price is right, it should be much lower than most other loans and the underlying asset might even go up higher than the rate you're paying on it. Depending on what brings you enjoyment in life, a new car loan can sometimes be found at 0% APR from the manufacturer because they are able to sell another vehicle which has a built in profit margin already, however the fact it depreciates quickly would probably make that inadvisable.

[God bless u]

Borrowing or taking loans is not bad but being a debtor is where the problem lies. What I'm trying to say is that, it's normal to be in need and borrow when you lack, but owing for too long or not being able to clear your debts at the appropriate time, is the problem and can be very embarrassing. Now that's where Debt management comes in, Debt management to my understanding is a process where by one plans strategic means of attending to their debts thereby avoiding numerous debts and be debt free.

 Dept Management is something every human is supposed to be aware of so as to help tackle the problems of being a debtor. Left for me, one who is in debt is like a slave and is bound to face being embarrassed if not they don't apply debt management. That's why before one should take loans, there are many things that's need to be considered. However here are the necessary steps people should take to become debt free;
 Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Avoid spending beyond your budget: this is also another way of debt management because when you spend only what you can afford, it would help you from being a debtor cause you'll be more focused on things you need.

Do not borrow funds to clear debts: doing that automatically makes you acquire more debts and it keeps accumulating because you won't seize to acquire outstanding debts, it would continue to go in cycles until you work hard to earn and become totally free.

Clear debts on time : no one is above being in debt, however one shouldn't settle with being known for a debtor, it brings embarrassment and could cause emotional trauma, therefore one needs to keep tracks of their dept and work on paying them off, beginning high interest debts down to minor ones, needs to be strategic with clearing their debts.

Right choice of investments: investmenting on the right business is just like saving for the future, cause you'll always have a financial support to fall back to, and also avoid taking loans, therefore the right choice of business would guarantee you have a safe heaven rely on instead of taking loans.

Make wise spendings: Consider your financial strength before purchasing items, purchase only items that are of needs not the ones that don't match your financial strength.

 Another way of debt management I could think of is to learn to make proper financial decisions, one should educate themselves financially about  investments and how to plan financially to be debt free.

                                    In Conclusion
 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
One key thing that you seem to have overlooked and is a major fact in debt is the repayment rate on that debt. Choosing the right type of debt, or even your ability to access certain types of debt, can be a large factor in whether it is a good form of debt for you. Take mortgages for example, probably the only wise form of long term debt that you should take on if the price is right, it should be much lower than most other loans and the underlying asset might even go up higher than the rate you're paying on it. Depending on what brings you enjoyment in life, a new car loan can sometimes be found at 0% APR from the manufacturer because they are able to sell another vehicle which has a built in profit margin already, however the fact it depreciates quickly would probably make that inadvisable.

The point you mentioned is a good one but do you think it's that easy for an ordinary man to understand.The major problem is that people are unaware about the hidden rule and regulations regarding the debt that banks list on the agreement.

People just go with the basics and when something happens off the road then the hidden rules come into play and they react like we don't know about them. You always should look for a person well established in the field of economics and ask him to properly provide a advised plan for you it'll save you from further complications.

[bestcoins1]

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

It's strange why there are still people like that nowadays, even though everyone knows how to spend money the right way and doesn't need to make things they don't need for themselves. Credit cards are more suitable for those who have a lot of money saved and also don't want to have too much trouble when they want to spend something at a certain time. But I don't think everyone needs this and as long as they are conscious enough about using the card, of course there is no need to bother making one.

[Dewi Aries]

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

It's strange why there are still people like that nowadays, even though everyone knows how to spend money the right way and doesn't need to make things they don't need for themselves. Credit cards are more suitable for those who have a lot of money saved and also don't want to have too much trouble when they want to spend something at a certain time. But I don't think everyone needs this and as long as they are conscious enough about using the card, of course there is no need to bother making one.

No, not everyone knows what money they should spend properly, because everyone definitely has their own desires, one of which is buying what they want even though it's not that important. I think it's not a problem if we have limits, because I think by doing things like that, I think it's a way of appreciating yourself. We certainly need pleasure for ourselves in life, we need motivation to make us enthusiastic about surviving by working hard. and by working hard you will have an income, but the problem is that they don't manage their finances well, they only think about their desires but don't think about other things that might be more important.

recently my friend bought a motorbike, where the motorbike he bought was a well-known motorbike for young people, he worked hard to collect money so he could buy the motorbike he dreamed of, but with his impatience, he opened his savings which Maybe that's almost enough for the price of the motorbike he wants, but in reality it's still not enough and because he's impatient he ends up borrowing money, in my opinion that's not wrong because it's based on his own desires, but what we have to pay attention to is We can be responsible for what we have done, including taking out loans. If we do take out a loan then we must be able to pay it back within a short period of time.

[poodle63]

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

there's many misconception about the use of credit card that people seem not to understand, there's reason why many "rich" people try to mantain their cashflow and one of them is by utilizing credit card, when people are using credit card doesn't mean they gonna pay in installments because they are consumptive and they are running out of money, they probably just gonna delay payment until sometime and then paid it in full, its common use for many rich people out there that just want sometime so to not disturbt their cash flow and thats wise enough, i'm pretty damn sure that if someone is just too entangled into debt their credit card limit already reached limit and they can't pay for it, soon they'll lost hold of the credit card, these people also might take advantage of credit card feature just for the sake of growing that credit point for future use.
usually people with credit card know how to deal with debt management in my opinion.

[Bloodseekers]

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.

If we can resist desires that we don't need, of course this will be very useful for us and our finances, because too many desires with little income will certainly make us have to borrow money to be able to meet the needs we need. you are right, not everyone has the same thoughts on this matter and there are some people who continue to borrow money so that their desires can be fulfilled and this has no benefit for them and this will certainly make it difficult for them to have savings because they have to continue to pay loan debts that they've taken.

Lots of people nowadays are very comfortable with asking for money to be paid later on even with things they don’t need. Such example is a credit card. Instead of accepting we can’t afford something, we go out of our ways and ask for money from lenders which like you said can be very addicting. You are spending your money but at the same time not really which gives you the illusion that you are not spending any money at all.

Currently, everyone who cannot fulfill what they want because they don't have money will be able to easily achieve what they want through loans as you mentioned and they will be able to fulfill their desires and indeed this will make them addicted to lending money because it doesn't feel like it because we don't see the money we lend and it's not very good if we keep doing this because it will make it difficult for us to pay it back.

[Juse14]

Taking out a loan is not a bad thing, as long as it is noted that the debt can be managed well. And whether you believe it or not, the richer a person is, the greater the debt they have, but strangely the debt they have makes the person even richer. This can happen because they are able to manage the debt they have well, where they use the loan for investment purposes or as an injection of funds for the business they are managing, they really do everything carefully, with careful calculations and analysis. In other words, they take loans so they don't lose the opportunity to get bigger profits. This is different from the majority of people whose financial level is middle to lower, where they usually take out loans just to meet their daily needs or simply to meet their prestige. This is a bad behavior that ultimately results in them being caught and in debt, because apart from being unable to manage their finances and the debt they have well, they also often take out loans for no apparent reason.

[Yatsan]

Point is clear but it all depends on how an individual will handle the need to borrow money from any banking institution or other people. However, there are just emergencies which will put someone at the edge of needing to do so and in those instances, it would be acceptable to purchase a loan but only an amount you can afford paying to not make your life miserable but of course as much as possible never engage to debt unless it is really necessary. Some people are engaging to loan for their businesses which is a good thing IF you have made a thorough research and can at least give you a decent potential to make it profitable and to allow it to pay your debt on your end. Now, with unwanted scenarios, best way to settle debt is to simply prioritize it and set aside those which could possible be. Even with baby steps, what matters is consistency. If you're in debt then embrace temporary struggle of paying it as quick as you can to at least be able to move on, afterwards and to continue what you are minding outside this scenario.

[pusaka]

Taking out a loan is not a bad thing, as long as it is noted that the debt can be managed well. And whether you believe it or not, the richer a person is, the greater the debt they have, but strangely the debt they have makes the person even richer. This can happen because they are able to manage the debt they have well, where they use the loan for investment purposes or as an injection of funds for the business they are managing, they really do everything carefully, with careful calculations and analysis. In other words, they take loans so they don't lose the opportunity to get bigger profits. This is different from the majority of people whose financial level is middle to lower, where they usually take out loans just to meet their daily needs or simply to meet their prestige. This is a bad behavior that ultimately results in them being caught and in debt, because apart from being unable to manage their finances and the debt they have well, they also often take out loans for no apparent reason.

You are right, someone who is already rich will take out a loan because they want to develop the business they have, and they do this with really mature calculations, so it is not surprising when they dare to take risks by taking out large loans because they have already calculated their profit ratio. and the amount of debt that must be paid. Even if we see that they have total wealth, half of which is in the form of debt.
That doesn't apply to people from a lower middle class economy, as you said, they take out loans to make ends meet, so the loans they make cannot make a profit. This is clearly not healthy, especially if you take out a loan just because of the prestige of buying luxury goods, they are creating problems for themselves in the future.

[MarjorieZimmermanGinger]

Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Unfortunately, not everyone is able to make a budget list for their life, so they will have problems. Making a budget list can be done if people have a steady income even if the income they receive is slightly smaller. At least if someone has a fixed income they can manage their finances for expenses for anything and after that make a much more economical portion to cover all the necessary needs.

Organizing financial management is not easy, especially if we have a big responsibility towards our family. Usually the more expenses we need, the greater the income we need. The ability to manage finances will become increasingly difficult in unstable economic conditions and it is quite unfortunate that there is no solution that they can do.

[Alone055]

Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

Avoid spending beyond your budget: this is also another way of debt management because when you spend only what you can afford, it would help you from being a debtor cause you'll be more focused on things you need.

Make wise spendings: Consider your financial strength before purchasing items, purchase only items that are of needs not the ones that don't match your financial strength.

These three are the same things written in different forms, the actual point is not to overspend so that you don't need to borrow money to cover your expenses.

In my opinion, a person should never borrow money or take loans for personal expenses because you will barely be able to repay that without having any problems if you are a salaried person who gets a fixed amount every month. Let's suppose you borrow some money because you are out of cash and you think of repaying that loan next month with your salary. When you get your salary next month and repay the loan, you will have less money left once again, and after a few days, you will need money again. So this cycle will continue.

A personal loan should only be taken when the person taking the loan knows they will have enough money in the future to repay the loan and not the need to take another loan.

[stomachgrowls]

Learn to cut cost: one needs to avoid too much spendings, normalize spendings only on necessary things, either for food bills, craving or wants, your expenses should be focused on your needs and not wants.

 Make Budgets: making a bucket list of budgets would aid you to monitor your income and also help you to make right decisions on important expenses.

Unfortunately, not everyone is able to make a budget list for their life, so they will have problems. Making a budget list can be done if people have a steady income even if the income they receive is slightly smaller. At least if someone has a fixed income they can manage their finances for expenses for anything and after that make a much more economical portion to cover all the necessary needs.

Organizing financial management is not easy, especially if we have a big responsibility towards our family. Usually the more expenses we need, the greater the income we need. The ability to manage finances will become increasingly difficult in unstable economic conditions and it is quite unfortunate that there is no solution that they can do.

People would really be only realizing on the time that they would really be able to experience problems and this is the only time that they would really be having that kind of approach and adjustments
whenever they are really that into those hard situations on which we know that this is something that very common behavior of people. Debt is something that been part of our lives today
on which its hard to believe that people wouldnt really be having any debts which is of course excluding into those wealthy or rich people then they are really someone who doesnt have a debt i believe.
It would really be better that you should really be having that kind of management because if not then it would be making your life even more miserable.

Learn your debts to be used on the most worthy way and not really just that taking a loan just because on buying up something or whatever they do have which it is
really just that a waste.

[alastantiger]

Do not borrow funds to clear debts: doing that automatically makes you acquire more debts and it keeps accumulating because you won't seize to acquire outstanding debts, it would continue to go in cycles until you work hard to earn and become totally free.

Rather than borrowing to pay off my debts, I added a side hustle - photography. I do freelance product photography on the side for auction houses. So they give me bins of costume jewelry, small decor items like vases, sterling silver, etc. I take it home and photograph it all and then they hold an online only auction. I charge roughly $40 an hour to do that for several auctioneers and also antique dealers that sell online. I also have my own etsy shop selling items I find at yard sales and flea markets. I've had almost 400 sales so far. That's on the side of my full time job. And I am clearing off my debts.

[SatoPrincess]

Sounds like OP is a fan of Robert Kiyosaki. Having debt is one of Kiyosaki’s most popular advice for business owners and real estate investors, his solution to debt is incurring more debt. I don’t know how that works in the United States but in my country that kind of advice will get you into trouble if you are not careful. I agree with the first comment on the thread, debt should be avoided in the first place.

[nara1892]

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us

True, I agree with this that everything can become a habit when you try and feel the benefits, but the real benefit that is meant in terms of taking out a loan is to help overcome problems when someone is in an emergency situation which requires fast funds to solve the problem and not to be used as an alternative when you are not in a situation that is not too needy.

Because what is feared is yes as you said that when someone is getting used and addicted then they will bring themselves to new problems in their life, and I think it is not uncommon for people to end up experiencing pressure problems due to debt and usually they are typical people who live with prestige, or that means someone who prioritizes a lifestyle that is actually not something that should be prioritized, while on the other hand the times will be more modern where the lifestyle will also definitely be higher and obviously this will make them more dependent on loans when they do not have the ability in terms of finance to finance their lifestyle and obviously in the end they will only lead themselves to many problems due to utilizing loans for something that is not really needed.

[harapan]

The habit of being in debt will make it like a disease, someone who is used to being in debt will easily ask for a loan even though he/she don't need emergency money. If we can, it's better to avoid debt and start saving. Don't try to borrow money for consumer needs because it is very detrimental, good debt is debt that is used for business development (not starting a business)

Even though debt is not illegal, avoiding debt will make it a good habit for us
[/quot

Debt is a debt,it is what it is and it's no good at all.Been in debt hinders growth and restricts financial responsibilities.That's why financial experts,they'll always advice that you save for what's around the corner and invest for the future.Initially,its not every person that this advice works for or is meant for.If you have multiple financial responsibilities or activities,going into debt is not the best option to assist you,because it puts you in a critical state/situation.

Although many persons consider debt as a second choice when they equally seem not to cope with their financial career,and it is common for them to get into debt distress.
 Although they're various reasons people get into debt,and its not advisable.Others get into debt intentionally,your debt level starts when you start living above your means,and anytime your expenses is greater than your net income,then you'll start borrowing to cope with your life.

[Don Pedro Dinero]

The best way to manage your debts is not to have them. However, since most people today have debt, it is best to think in terms of ratios. Things like your mortgage not exceeding 30% of your income. On the other hand, if you have consumer debt, think that paying it off early is like investing with an instant return. So, the best way to handle consumer debt is to get rid of it by paying it off as soon as possible.

[Apocollapse]

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're talking about venture debt which is the businessmen need to pay the debt + interest which is nothing different like asking debt from banks. While in venture capital, you don't have to pay them, but they're allowed to sell their shares, and you don't have to refund them if your business bankrupt since both of the parties accept the risk and gain. https://www.cbinsights.com/research/venture-debt-venture-capital-vc-comparison/

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.

Well it's true you can miss out many opportunities when you lack of money, but it's something you need to bear, don't be greedy. I believe every businessmen are try to manage their manage their business and money properly, but there have been many businesses fail which mean it's not only because their money management. https://www.luisazhou.com/blog/businesses-that-fail/

Considering how there are good number of successful cases, I dare say this is not the worst thing to do.

Yeah I know, there are also many businesses who start from debts and successful, it just playing with fire isn't my thing.