Debt Management.

[Die_empty]

@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.

I read the publication from Robert Kiyosaki where he was discussing about good debt and bad debt. He highlighted the benefits of accessing loans to invest in businesses that can yield profits. He also indicated that debt could also be a good means of reducing taxes and helping in building investments. His view is that debt is bad if it is wasted on liabilities which doesn't bring any financial returns.

I am not a fan of the so-called good debt because business is unpredictable. No kind of business guarantees profit and I don't want it to be a victim. He advocated for people to invest in real estate but this industry is not loss-proof. Natural disasters, wars, conflict or even migration can cripple the real estate sector of any country. There has been an increase in the sale of cheap houses in some towns in Italy some of them are been sold for as low as €1. The reason for this is that the population of such towns have depreciated because of natural disasters, migration, etc. Anyone who owns many buildings in such an area will go bankrupt.

I prefer to invest in only businesses where I can afford the capital. The business would gradually grow with time instead of taking loans to venture into an unpredictable future.

[God bless u]

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.

[Casdinyard]

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.

 Here are some debt management charts to help you understand further.

https://images.app.goo.gl/SrXEfxH6TghMQ5JN6



https://www.google.com/imgres?imgurl=https%3A%2F%2Ffastercapital.com%2Fi%2FMastering-Debt-Management-Strategies-to-Conquer-Interest-Shortfall--Understanding-the-Importance-of-Debt-Management.webp&tbnid=F0OKGlIo-js0SM&vet=1&imgrefurl=https%3A%2F%2Ffastercapital.com%2Fstartup-topic%2FImportance-of-Debt-Management.html&docid=P-4lD9dQy_YHRM&w=1350&h=759&itg=1&source=sh%2Fx%2Fim%2Fm1%2F2&kgs=29fb4c3855f0be51&shem=abme%2Ctrie

                                    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.

Good read. And if I may add, I'd like to top this list with another tip that would severely help people who are drowning in debt.

You gotta have a second job

Doesn't have to necessarily be high-paying or whatever, just enough to sustain your bills or whatever essential expense you are looking forward to every month. And use the money you're earning from your main job as a means to pay up the loans/debts you incurred, while keeping the side-hustle money as your take-home. Sometimes budgeting just isn't enough, personally I've been in debt in the past and cutting on expenses alone didn't do it for me, and while it did teach me a lot about discipline and making wise weighted decisions, it never really helped me financially recover.

That's when I got a second-job that I can do at the comfort of my home. What took me years to just pay the half of, took me 3 months as I was able to use the money I earn from my main job to pay it off in large batches, while I am sustained by my second work. Best part about it, when I got the whole thing paid off, my finances became even more free and I am now able to live a pretty lavish lifestyle if I do say so myself.

[tabas]

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

[eightdots]

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.

Debt dependency is dangerous. Borrowing is permissible if the time and reason for borrowing are valid. There are important details that we should pay attention to when borrowing. Borrowing can be beneficial if one of these details is to take advantage of an opportunity that needs to be evaluated in an emergency and will be missed. Otherwise, borrowing to meet unnecessary needs will have a negative impact.

In some countries, due to inflation, borrowing can enable a person to buy a good at a cheaper price. If you want to buy the same product in a month's time and you think the price will increase, it makes more sense to buy it now.

[KingsDen]

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

Almost everyone at some points in time will need loans. But the difference is the purpose why the individual needs the loan. While some will need loans to start up business, some could need loan to celebrate finances birthday. No matter how insane this sounds, it happen and I have also witnessed it. Using loan to start up a small scale business is risky because the business could still die during the introduction stage. If there's anyway to save, it will be nice.

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.

This sounds crazy to me. Do people actually do this?

[armanda90]

Actually debt or taking borrowing for building business become more profitable way for the future but currently many people forget with debt management for taking loan and calculating with how much percent debt interested have to pay.
I learned with some success businessmen always have quit well debt management before taking loan and put under 20% of their assets as limitation, its mean if their values assets above $1 million just applying loan only $200k and they won't more bigger loan than with their assets having.
All businessmen have loan but never increasing limitation for taking loan bigger than how much assets having, but some people have bad debt management when taking loan more bigger than assets they have when the business fail difficult to recovery with how much assets they have and loan payment not on time have increase loan interest.

[sekalitas]

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.

I agree with most of your points, but I believe borrowing funds to clear debts can be beneficial in certain situations. For example, if we have debts with multiple banks or institutions at high interest rates, we could borrow from family or another institution with a lower interest rate. This allows us to consolidate our debts into one place for easier management. Of course, having a family member or close relative willing to lend money is a fortunate situation.

Additionally, taking on debt can be beneficial if we use the funds strategically to generate more income.  Borrowing money to invest in a business or other income-producing asset is different from using it for purely consumptive purposes.

[tabas]

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

Almost everyone at some points in time will need loans. But the difference is the purpose why the individual needs the loan. While some will need loans to start up business, some could need loan to celebrate finances birthday. No matter how insane this sounds, it happen and I have also witnessed it. Using loan to start up a small scale business is risky because the business could still die during the introduction stage. If there's anyway to save, it will be nice.

And there are riskier take up of loans and they're even crazier than setting up a business that's already risky. I've seen people taking loans just to go to concerts, vacations, celebrating of their birthdays and holidays. I think that's a bad debt and people who have been doing that has to change their way of taking loans and stop doing so. It's not going to give them a better use and they'll be categorized with the people that can't utilize and maximize the usage of loans. Unlike those risk takers and businessmen, they take loans for expansions and buying more stocks and etc for their businesses.

[AnonBitCoiner]

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.

People fall into debts only when they spend more money than their income and they know better that they cannot return that amount easily. Nobody will be in debt when they reduce their expenses because all the things that matters is the over spending.

The better strategy to not fall into debt is that don't spend too much money on that materials which are not compulsory for life but you can also live without buying those materials. Plan for spending and whenever you think that now your planned limit is going to end then put a limit on spending otherwise you will be in debt every month and at last your burden will increase so much that you will be unable to reduce it.

[MarjorieZimmermanGinger]

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.

The question is why do people get into debt? Human behavior is sometimes reluctant to live in simplicity and they are even willing to go into debt just to fulfill their lifestyle. This kind of lifestyle is not recommended because we are not trying to live in simplicity. Rich people take on debt to develop the business they run so that debt is much more productive than poor people who take on debt to fulfill their lifestyle, such as buying a motorbike, for example. Management is needed to control money because even if you get a lot of money, if you can't control it, it will also be wasted.

The need for debt must be seen for what it is and if it is only to fulfill a lifestyle, it should be avoided. People's mindset towards debt must be seen according to their needs because if they take out a loan to develop the business or business they are running, for me it is not a problem.

[boty]

People fall into debts only when they spend more money than their income and they know better that they cannot return that amount easily. Nobody will be in debt when they reduce their expenses because all the things that matters is the over spending.

The better strategy to not fall into debt is that don't spend too much money on that materials which are not compulsory for life but you can also live without buying those materials. Plan for spending and whenever you think that now your planned limit is going to end then put a limit on spending otherwise you will be in debt every month and at last your burden will increase so much that you will be unable to reduce it.

When someone spends more than their income, of course this is because they cannot hold back desires that they can still postpone and they force themselves to fulfill their desires so that the income they have cannot meet their needs and will indeed be more It's good for them to reduce their expenses to things they can still afford so they can use their income well and meet their needs.

Having financial planning will of course be better so that someone can use their income well so that they don't spend their income on things they don't really need so that their income is used up and they have to look for loans to meet their needs in a month so we have to keep repeating the debt habit until we can have a spending plan according to the income we have.

[Lanatsa]

Make wise spendings

You wont really be having those debt problems if you do really just know on how to do that above on which you should really know about on having that wise spendings because
once you do make yourself that lost control on the things that you've been doing specially on financial handling then you would really be ending up on having that financial problems
on which we know that these is where people do usually lose up their control when it comes to their finances.

Never ever make yourself that do borrow money to pay up debts because it would really be just that making your debts even more deeper because of interest.
It is really just that common sense on what are the things that you should really gonna do and not really just that make yourself that doing actions
which are really that totally opposing or something that not practical or ideal on doing so.

[Zoomic]

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.

 Here are some debt management charts to help you understand further.

https://images.app.goo.gl/SrXEfxH6TghMQ5JN6



https://www.google.com/imgres?imgurl=https%3A%2F%2Ffastercapital.com%2Fi%2FMastering-Debt-Management-Strategies-to-Conquer-Interest-Shortfall--Understanding-the-Importance-of-Debt-Management.webp&tbnid=F0OKGlIo-js0SM&vet=1&imgrefurl=https%3A%2F%2Ffastercapital.com%2Fstartup-topic%2FImportance-of-Debt-Management.html&docid=P-4lD9dQy_YHRM&w=1350&h=759&itg=1&source=sh%2Fx%2Fim%2Fm1%2F2&kgs=29fb4c3855f0be51&shem=abme%2Ctrie

                                    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.

In addition, if you must take loans or borrow, be sure that there is already a defined means on ground that will help you pay off your debts as at when due or even before it is due. Many debtors borrow with the hope that before the repayment date is due, they will have the money to payoff their debts. Many others borrow because someone promised to give them money, hence the need to borrow while waiting for the person who promised them money to send. No matter the reason for borrowing, it is very risky to borrow when you do not have any reasonable means in place to payoff the loan you took. This act will only lead you into more trouble as you might resolve to selling off properties or taking more loans to finance your debts. Avoid taking loans if you are not certain about how to repay them.

[oktana]

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.

People fall into debts only when they spend more money than their income and they know better that they cannot return that amount easily. Nobody will be in debt when they reduce their expenses because all the things that matters is the over spending.

The better strategy to not fall into debt is that don't spend too much money on that materials which are not compulsory for life but you can also live without buying those materials. Plan for spending and whenever you think that now your planned limit is going to end then put a limit on spending otherwise you will be in debt every month and at last your burden will increase so much that you will be unable to reduce it.

Yep. That’s it. Don’t spend more than what you earn. It’s something I practice and it works. There are days when I feel I’ve overspent and once the feeling and thoughts comes, I cut off and if I want to spend, I first ask myself if I earn (on a daily basis) the amount I want to spend.

It’s not really difficult to not be in debt. But yet it’s not uncommon to see people in debt.

[justdimin]

Almost everyone at some points in time will need loans. But the difference is the purpose why the individual needs the loan. While some will need loans to start up business, some could need loan to celebrate finances birthday. No matter how insane this sounds, it happen and I have also witnessed it. Using loan to start up a small scale business is risky because the business could still die during the introduction stage. If there's anyway to save, it will be nice.

And there are riskier take up of loans and they're even crazier than setting up a business that's already risky. I've seen people taking loans just to go to concerts, vacations, celebrating of their birthdays and holidays. I think that's a bad debt and people who have been doing that has to change their way of taking loans and stop doing so. It's not going to give them a better use and they'll be categorized with the people that can't utilize and maximize the usage of loans. Unlike those risk takers and businessmen, they take loans for expansions and buying more stocks and etc for their businesses.

I do understand taking loans for a business, even if you fail at least you tried and there is a possibility of making money, hell even like taking out a loan to buy as many lottery tickets as you can could be a stupid decision but at least has a chance to make money, small one, but has that chance. What's the point of taking a loan for concerts? Or a new iphone? Or holiday? That will not help you at all, it will not make it any better in the end for you.

I believe that business loans are great, you could take that out and start a business and hopefully you could make that back and your business will do fine, but that's unfortunately not an easy thing to do and should not be something that could benefit you over course of long time.

[stomachgrowls]

Avoid spending beyond your budget

You would definitely free yourself from potential debt or loan if you do have this kind of mindset on which you shouldn't really be that able to reach out on a condition
to have tons of loan or debts because you are really just that spending on what you can afford and not go beyond with those means on which usually people do really
commit out. They do mess their lives because they are spending which is more than on what they can afford.

If you do have this kind of behavior then you are really just that basically putting up yourself on such big or huge trouble considering that we are really that
spending that much. Always having that budget and moderation when it comes to spending. Be responsible and be that sensible when it comes to that manner
because if you cant just that put up yourself on such condition then problems later could be felt.

[poodle63]

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

I so agreed with this debt aside from the interest that gonna burden, mental pressure also a thing when we got entangled in debt. know that such mental pressure costs us our health in the long run, for someone with crippling anxiousness, debt might become even more of a problem because they can't stop thinking about the debt that they need to pay if their salary is not sufficient, it will be a massive stress.
personally I also don't like debt with too much string attached, this just another form of cripple that just take away peace that just make life bland.
i don't know how people could be having the bravery to be entangled into debt, getting their salary eaten up and be fine with it, with me personally i can't.
but i've seen plenty that willing to take a loan, get entangled into debt for the most mundane useless thing ever such as dining at a restaurant, thats just silly in my opinion.

[Viscore]

I guess that the majority of the people in the world has got debt. Even the huge corporations, even countries and even small individuals have got their own debt. I am not into debt and I don't have mortgage nor car payments because I am avoiding them at all cost. I don't feel good when I've got obligation to pay and I have to think of it monthly for so many years. It is sucking my peace and that's why I am avoiding them. Maybe my debt is just a personal one from my loved ones and there's no string attached to it and no pressure at all. Unlike if we do it with the banks, they're going to take your collateral when you're not able to pay on time, you'll get countless reminders. So, if you can't pay the thing you want in cash, much better to save your peace and save money first.

Getting into debt has become a norm for everyone now, most particularly for those who are low income earners who have very hard time in making their ends meet. It’s like it’s inevitable, but we should also know that it can be always avoided as well. Discipline is the key. Learn to save first before you goal to buy something you can’t afford. Focus on your needs, and once you have spare money, that’s when you can attend to your wants as well. And as much as possible, spend within your means. Do not go above or beyond, because that will only trigger yourself to start creating a loan.

[Mauser]

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.

 

I agree with you that debt management is important, but I think it's even more important to avoid the use of it in the first place. In my opinion being in debt is not a good idea and should be avoided wherever possible. Especially now in times of high interest rates the monthly payments for our loans can be crippling. There are circumstances where debt can't be avoided like buying a house, medical emergencies or visiting a renown university. Other than that debt shouldn't be option, because it will lead to higher spending and getting used to living above our means. I have seen it among friends that got used to taken out loans for taking vacations, new clothes and buying a better. All of those things aren't really necessary.