Debt Management.

[retreat]

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.

Paying debts on time is the most important thing in debt management. Someone can list how much debt they have in 1 month and what date it is due, then they can pay it according to the due date. Because delays in paying debts will be detrimental to the debtor themselves, because they need to pay late fines every day and this will continue until they can pay the debt. It will also have an impact on the bank's credit score.

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[junder]

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.

Yes that's right, indeed for people who have unstable finances it is not strange that they make loans or owe money, as you say it is to meet their needs, which is indeed a need that we must pay attention to because it is one way to survive. Especially now that all food or needs sometimes rise in price, but it cannot be avoided, of course we must be able to balance it.
I am also sure that in one neighborhood there must be families who have debts, whether it is in debt for basic needs or for others.

Indeed, we must be able to save for our future or just in case, and certainly when we were young we were taught to save by our parents or those who took care of us. It's just that everyone does not have the same income, maybe there are people who are bad at finances, such as not working or very minimal or limited income.

[Ryu_Ar1]

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.

Paying debts on time is the most important thing in debt management. Someone can list how much debt they have in 1 month and what date it is due, then they can pay it according to the due date. Because delays in paying debts will be detrimental to the debtor themselves, because they need to pay late fines every day and this will continue until they can pay the debt. It will also have an impact on the bank's credit score.

The problem is that things like this need further thought about how we deal with debt because sometimes for now we are actually always faced with loans that continue to be made but in the end they are inconvenient to pay especially on time because sometimes we only owe but don't think about how to pay it.
This kind of thing is not a few people who do it because they only think about borrowing and getting instant money but are confused about paying for it.

In my country, online lending is quite common but sometimes it is used as a momentum where those who borrow but do not want to pay the debt they did before. In fact, it is not uncommon for cases in my country when collecting loans, sometimes people who have debts act more anarchist.

[tottong]

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.

Debt must be seen from the perspective of needs because if people borrow but it doesn't work out well, the debt will become a problem in their life.
Debt is categorized in two ways, the first is borrowing to develop a business and the second is for lifestyle needs. From these two aspects, debt will become more planned if people use it for business development because they have a plan to pay it off.

Meanwhile, taking a loan for lifestyle needs is actually the wrong decision and unfortunately people don't understand what the term unproductive debt means. If you take a loan for business progress, it is much better because people have a long-term plan for using the money.

[Iroh]

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?

It does sound crazy and unfortunately it does happen and if this actually surprises you, You’d be more surprised at the number of people who do this. People do use their credit cards to pay for lots of payments owed to various services thus accumulating more debts.

Asides that, people literally take out loans from the bank or wherever  to repay another loan that’s due. It would be quite difficult for people like that to totally pay off all his loans cause even if the individual fails in paying off the debt on the due date, the interest on the loan would keep counting. 

[fullhdpixel]

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

Spot on, I often find myself thinking what could make people to be proud of being given a high credit score by the banks they use? Since this only means they are good at taking and repaying their debt on time, a much better approach would be to avoid debt as much as possible, with the exception of a mortgage as very few people can buy a house with just their savings, save some money, invest it and then buy whatever you want without the need to worry about paying your debts back.

That was it, "repaying on time" is what makes them proud of their selves, and a high credit status might give them a sense of achievement. Not only that but I am pretty sure that they can also get some rewards with that. As you said, it is still much better to live free from debts.

It's like we can breathe clearly now or there are no more headaches and stress that we can feel but that is in terms of having a debt only because we still can experience them in other things. We can also get those rewards that we think we can only achieve when we have debts and we can in fact get them much faster and buy a better item than them. As for the house, I won't rush it. We still can live with our parents and friends for a while, or rent a cheap one.

[AmoreJaz]

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.

Debt must be seen from the perspective of needs because if people borrow but it doesn't work out well, the debt will become a problem in their life.
Debt is categorized in two ways, the first is borrowing to develop a business and the second is for lifestyle needs. From these two aspects, debt will become more planned if people use it for business development because they have a plan to pay it off.

Meanwhile, taking a loan for lifestyle needs is actually the wrong decision and unfortunately people don't understand what the term unproductive debt means. If you take a loan for business progress, it is much better because people have a long-term plan for using the money.

Do consider those people who are in debt because they need to pay their basic expenses, such as monthly bills and others. They need to carefully budget their income vs their monthly expenditures. Try to live within your means. I know it is hard especially if your income is quite small. But you need to find alternatives on how to augment your income or lessen your expenses.

Debt management is good to live by, but as much as possible, live debt-free and you will find out that you will have better and more carefree life. No stress from these loan sharks. For sure, you would prefer to live decently within your budget rather than with a headache from your debts.

[G_Besar]

Debt must be seen from the perspective of needs because if people borrow but it doesn't work out well, the debt will become a problem in their life.
Debt is categorized in two ways, the first is borrowing to develop a business and the second is for lifestyle needs. From these two aspects, debt will become more planned if people use it for business development because they have a plan to pay it off.

From the two aspects of debt that you say, it is quite clear that what is better is debt for the needs of developing a business. Because with the results of their business, it will be easier for those in debt to pay it off within a certain period of time so there will be no difficulties except in pursuing the sales target of their business. So it would be more suitable for everyone to do if the purpose of the debt is for business development and not to be wasted on a lifestyle that never ends.

Meanwhile, taking a loan for lifestyle needs is actually the wrong decision and unfortunately people don't understand what the term unproductive debt means. If you take a loan for business progress, it is much better because people have a long-term plan for using the money.

I cannot judge how people who are in debt think to fulfill their lifestyle because it will definitely be difficult for them one day if that person does not have the income they can expect to pay off their debt. But if you still see people like that around you at this time, I think you need to advise them even though it may not be an obligation for you. However, such people need to be given understanding so that their mindset can change and not be indebted carelessly to certain parties using any means.

[Agbe]

There is no big deal here. And all I will say is that before you plan to collect a loan, you have a plan that when you collect the loan you will pay back within the agreed period of time. And don't take a loan when you don't have any plans in the future to pay back. Because when the agreed time comes and you don't have anything to pay back then the lender will collect your landed or any other properties to settle the loan. Even the two examples op give gave, don't take a loan because of business at the beginning. That is don't start you business with debt because it will affect you in the future if the business is not doing well. But you can take a loan to top up your business and expand it then pay back when the agreed time has come.

[Hamphser]

There is no big deal here. And all I will say is that before you plan to collect a loan, you have a plan that when you collect the loan you will pay back within the agreed period of time. And don't take a loan when you don't have any plans in the future to pay back. Because when the agreed time comes and you don't have anything to pay back then the lender will collect your landed or any other properties to settle the loan. Even the two examples op give gave, don't take a loan because of business at the beginning. That is don't start you business with debt because it will affect you in the future if the business is not doing well. But you can take a loan to top up your business and expand it then pay back when the agreed time has come.

There's no wrong on taking up a loan it would really be just that the main issue on here is if you are really that a responsible loan taker because we know that the main issues on here is that not that paying on time
on which it would really be causing up that so much trouble into someones life specially if the interest is really that keeping on piling up. If you are someone whose really that responsible when it comes on
taking up some loans then it would be just fine. Also, you should really be having that consideration on trying out to make use of those loans into something which is worthy or something that could generate income like making up some loans for business expansion or typically that trying out to start a new one. Never ever take a loan just because you do want to buy up some luxurious things or wants
that you do have in mind.

[freedomgo]

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.

Paying debts on time is the most important thing in debt management. Someone can list how much debt they have in 1 month and what date it is due, then they can pay it according to the due date. Because delays in paying debts will be detrimental to the debtor themselves, because they need to pay late fines every day and this will continue until they can pay the debt. It will also have an impact on the bank's credit score.

Being a responsible debtor will somehow make a good impression on part of the creditor. If you think you can’t pay on time, then it would be better not to take a debt as much as you can. However, everyone has probably debt most especially because people find it hard to adjust and afford those high priced foods and necessities. As a result, people resort into taking loans, but should be responsible enough to clear off their debts on or before due date comes.

[KupaCrypto]

I don't really have a problem with taken loans , where the problem lies is not being able to pay back the loan in time, as it's going to starting yielding interest which in most cases might even be more Dan the money you borrowed, another I frown at is borrowing Money for consumption, that is like hustling backwards, because the money you borrowed you obviously don't have a plan or resources to pay back, but borrowing to invest Is not bad, in fact most successful businesses actually borrowed money to start,  and made sure the money borrowed was managed according, if you have a business idea and maybe you don't have the resources to finance it I will advise you take a loan to finance but also have a pay back plan in order not to be caught in the middle of nowhere.

[poodle63]

Being a responsible debtor will somehow make a good impression on part of the creditor. If you think you can’t pay on time, then it would be better not to take a debt as much as you can. However, everyone has probably debt most especially because people find it hard to adjust and afford those high priced foods and necessities. As a result, people resort into taking loans, but should be responsible enough to clear off their debts on or before due date comes.

it always comes down to money management debt is definitely a double edged sword, if taken advantage properly being the lawful debtor will definitely increase credibility and credit score, if worse come to worst in the future where we might need some money and take up on a loan, then things will get significantly easier if compared with people that never have a debt therefore have their low credit score.
definitely advantageous for entreprenur as well that often deals with situation where they need to expand but don't have capital so taking up on a loan is one of the alternative.
but for those that only use it for consumptive purpose, well be prepared to get miserable life if we don't control our money spending habit or in other word, spending recklessly we'll have bad credit score due to unpaid debt and therefore the system will considers us untrustworthy so that the next loan gonna be hard not to mention we gonna pay more interest if our debt get prolonged.

[Moreno233]

I don't really have a problem with taken loans , where the problem lies is not being able to pay back the loan in time, as it's going to starting yielding interest which in most cases might even be more Dan the money you borrowed,

The truth is that one should as much as possible avoid taking loans unless the loan is taken to fund a business which one is sure can generate profit that can repay the loan or one is sure, he has a stream of income that can support the repayment comfortably. Nothing destroy relationship more than money, so one should be very careful with loans because it is usually sweet during the time of borrowing and a burden during repayment. Besides, delay in repayment is a huge breach of trust that does not always end well. So the best management of loan is to avoid it as much as possible except for the reasons I have given above.

another I frown at is borrowing Money for consumption, that is like hustling backwards, because the money you borrowed you obviously don't have a plan or resources to pay back, but borrowing to invest Is not bad, in fact most successful businesses actually borrowed money to start,  and made sure the money borrowed was managed according, if you have a business idea and maybe you don't have the resources to finance it I will advise you take a loan to finance but also have a pay back plan in order not to be caught in the middle of nowhere.

Many people do this and I wonder how they are able to sleep at night knowing that they are owing someone with no plans on how to pay back. I don't know if others experience it, but the moment I'm owing someone, I usually feel uncomfortable around the person. It is only when the money have been refunded that I can feel relaxed.

[milewilda]

Being a responsible debtor will somehow make a good impression on part of the creditor. If you think you can’t pay on time, then it would be better not to take a debt as much as you can. However, everyone has probably debt most especially because people find it hard to adjust and afford those high priced foods and necessities. As a result, people resort into taking loans, but should be responsible enough to clear off their debts on or before due date comes.

it always comes down to money management debt is definitely a double edged sword, if taken advantage properly being the lawful debtor will definitely increase credibility and credit score, if worse come to worst in the future where we might need some money and take up on a loan, then things will get significantly easier if compared with people that never have a debt therefore have their low credit score.
definitely advantageous for entreprenur as well that often deals with situation where they need to expand but don't have capital so taking up on a loan is one of the alternative.
but for those that only use it for consumptive purpose, well be prepared to get miserable life if we don't control our money spending habit or in other word, spending recklessly we'll have bad credit score due to unpaid debt and therefore the system will considers us untrustworthy so that the next loan gonna be hard not to mention we gonna pay more interest if our debt get prolonged.

Double edge sword if you are someone whose really not that good when it comes on repaying loans but if you are someone whose really that responsible when it comes to debts then for sure you would really be able to make yourself that having no risks on putting up yourself on trouble because people would usually be putting up themselves on trouble on the time that they would really be neglecting out on repaying those loans in time.
Also there are people who cant really be able to think up well when it comes to good decisions on which they are really that taking up those decisions on buying up something or simply wasting those loan amount into something which it isnt worth or doesnt really bring out some income or revenue. Its not bad to consider on taking up some loan on buying something but being responsible about paying it back would really be hard
specially if its an amount that you cant easily pay up.

This is why always be considerate on taking up such step whether it would really be worth or wouldnt really be something advisable because you cant really be able to
pay up or not sure with it then better not to continue.

[tottong]

From the two aspects of debt that you say, it is quite clear that what is better is debt for the needs of developing a business. Because with the results of their business, it will be easier for those in debt to pay it off within a certain period of time so there will be no difficulties except in pursuing the sales target of their business. So it would be more suitable for everyone to do if the purpose of the debt is for business development and not to be wasted on a lifestyle that never ends.

That's called productive debt and when people take on debt to develop the business they are running then the opportunity to make a profit and cover debt costs will be much more controllable.
Although not everyone is successful in developing a business and there are also times when the business does not develop and they have to find a way to pay off the debt. But the minimum debt they take is much more appropriate than just to fulfill their lifestyle.

I cannot judge how people who are in debt think to fulfill their lifestyle because it will definitely be difficult for them one day if that person does not have the income they can expect to pay off their debt. But if you still see people like that around you at this time, I think you need to advise them even though it may not be an obligation for you. However, such people need to be given understanding so that their mindset can change and not be indebted carelessly to certain parties using any means.

Life requires management, especially if you decide to take on debt and many people are trapped in debt because of a bad lifestyle because they are too chasing a lifestyle.
It is difficult to advise people not to take on debt because today's life has shifted away from a simpler lifestyle, many people are trapped in debt because of the wrong lifestyle and in the end they have to work hard to pay off the debt for years.

[puloweh555]

Human nature is fear and greed. Fear in the sense of not getting a job, reduced salary, etc. And greedy in the sense that when we get a salary, get a job, our emotions will play around, we will think about money to buy things A, B, C. Finally a pattern of "rat racing (hamster toy where the hamster just runs in place)" is formed, namely waking up. , work, get a salary, pay off debts until old age.

Therefore, it is important for rich people not to work for money, but for money to work for them. And people's wrong thinking in general is that they think a house is an investment for an asset, so many people go into debt to own a house or make house installments, even though the house is the biggest liability, and many people leave. go into debt just to follow fashion or other things that they don't really need. This is one person who cannot manage debt well because debt is unproductive.

[Churchillvv]

I totally agree with everyone that said it's better not to even go into debts than find a solution around it. It's only good to know all this that op has stated if only one is already in debt.

So if one is wanting to take a loan and/or borrow from any source then it should be a very much productive purpose, either to make an investment that can yield back the profit earlier before the expected month not even date. But mind you this exception is basic for only few investments not every investment is good to take loans, there are some investments like bitcoin investment it's absolutely not idea to borrow or take loans in order to invest or purchase bitcoin because of it volatility, profit is not guaranteed.
So the issue of loan or borrowing should even be eliminated in the minds of investors even in times of desperations.

[Falconer]

-snip-

Paying debts on time is the most important thing in debt management. Someone can list how much debt they have in 1 month and what date it is due, then they can pay it according to the due date. Because delays in paying debts will be detrimental to the debtor themselves, because they need to pay late fines every day and this will continue until they can pay the debt. It will also have an impact on the bank's credit score.

I believe in one thing, if you don't pay your debts when you have money, then you will forever be in debt. There are many cases of this happening in real life, so these cases should be a lesson for others to quickly pay debts when they are due or when you have money. If it were me, I would prefer not to meet secondary needs first and would pay off debt, if I have it.

In my opinion, there is no need to go into debt when we have other options. For example, if you have gold or other valuable assets, it's a good idea to avoid debt and use safer options, such as selling your assets.

[Jody.Drummer]

Life requires management, especially if you decide to take on debt and many people are trapped in debt because of a bad lifestyle because they are too chasing a lifestyle.
It is difficult to advise people not to take on debt because today's life has shifted away from a simpler lifestyle, many people are trapped in debt because of the wrong lifestyle and in the end they have to work hard to pay off the debt for years.

In any case, management is the only important aspect, because only with this we are able to balance everything properly, especially if we talk about life problems where there are income and expenses and clearly management is the only thing that can make it all run in balance, meaning that we must really be able to manage income money properly, such as not allocating it to other things that are not really important to us and if you have unused money left over then clearly saving is an effective decision to prevent unexpected situations in the future such as when you need emergency funds.

But yes there are some people who do not think long in terms of utilizing money where one of them is like what you said here where they prioritize a glamorous lifestyle, luxuriate, buy something that is not very useful until in the end they themselves are in trouble which ultimately makes them have to take out a loan, and if this bad habit is not immediately topped with an action then obviously over time the situation will get worse where most likely the amount of debt they will accumulate which will make them experience many problems that make them depressed.