Debt Management.

[redsun114]

Paying debts on time is a form of responsibility and also good ethics. I am never late in paying my debts because I know which ones are my responsibility, which ones I have to prioritize and also the reputation I have to maintain.
Responsible people will definitely have a stable and comfortable life, we don't know what will happen to us in the future if we have a good history of paying debts then we can borrow money again in peace without being suspected, that's it, paying debt on time and being responsible for debts is a form of maturity and also good debt management.

I don't think not paying loans or debts on time is a choice but it's a compulsion because no one would willingly not repay a loan on time even if they have the money to do so, it would only be late for someone in repaying the loan if they don't have the funds to repay it on time which is why I never recommend taking personal loans unless someone is sure that they will be able to repay it as they have some funds incoming or have some payment in the pipeline that they will receive in the near future but they need money urgently so they take a loan.

If a person doesn't have any funds on hold or have any payments coming in in the future, they should never take loans because they wouldn't be able to repay it on time and as you said, that isn't good ethics and it will make the person have a bad reputation.

[Agbe]

Well, not paying debts on time will cost you more though as there will be another interest on top of your monthly amortizations. So, that will force everyone to pay on time. Maybe paying ahead of time when you have available money in your pocket is what we call a responsible payer. Paying on time can be missed sometime especially when there is an unforeseen circumstances that happens and will require an immediate funds, those funds intended to pay for debts maybe used in such cases.  That is just one of many example why we are missing a payment, so it is always better to pay ahead of time, let's say pay it a week before the actual due date.

I stopped collecting debt because whenever I missed the due date, the interest rate would be increasing daily and if I don't have money to pay on time then the interest would be accumulating to a reasonable amount again before I would have money to pay the interest would be almost equal to the capital. So I don't like loan at all. Except someone I know gave me the funds and we are agreed that they would be no interest to add them I will take the loan and pay back on time because they person too has programmed himself to use that money on that due date so any failure to provide that money, will also affects his plans. So those are some of the technics for debt management.

[Oneandpure]

Personally not wrong with debt or taking loan for business capital depend has balance under 20% loan of assets having, but many people take risk with bigger debt or loan than how much assets they have and get collapse with their business have to sell all their property or assets to recovery loan interested.
I think debt management is very important for businessman want take loan for their business capital, during have balance and under 20% of assets of loan its not much problem and still can recovery for loan interest when the business not running well.
Currently problem, the businessmen not make good roadmap when taking loan and looking the opportunity on one side only about profitable earn and ability to recovery loan interest, but if the business fail how to pay loan interest because most bigger debt than assets having?

[Fiasem20]

Op thanks for bringing such discussion, it's really important.To my own understanding debt management is a pave way that reduce debt and create an avenue for making budgets and financial goals.Borrowing money is something that happens everyday, people lend huge amount of money with interest from companies, organization etc.Some people lend money with a wrong motive,like for instance borrowing to play a bet and unfortunately it doesn't turn out the way it was expected that's a wrong decision.To me debt is more like risk taking because some people sign collateral with their valuables like (house,land,car) and at the end of the day if the debt wasn't cleared at a due time the borrowers won't have the chance of redeeming the property because it has already been signed by both parties as a collateral.A debtor is never free.Debt can be reduced if only we learn how to manage it;
1.Being satisfied with what you have
2.Being contented with what you have
3.Cultivate the habit of saving from your income
4.Investing on safe haven asset like Bitcoin
5.Don't borrow with the intention of clearing old debts.
6.Being fruitful, productive and creative will help reduce debt.

[junder]

I stopped collecting debt because whenever I missed the due date, the interest rate would be increasing daily and if I don't have money to pay on time then the interest would be accumulating to a reasonable amount again before I would have money to pay the interest would be almost equal to the capital. So I don't like loan at all. Except someone I know gave me the funds and we are agreed that they would be no interest to add them I will take the loan and pay back on time because they person too has programmed himself to use that money on that due date so any failure to provide that money, will also affects his plans. So those are some of the technics for debt management.

with this interest, perhaps this is a benefit that can be obtained by the borrower. but in my opinion, this also proves that loans are not free, because there is interest which can increase every day, especially if we cannot pay the debt on time. Before borrowing money, in my opinion, the thing we have to pay attention to first is whether we will be able to pay it or not, if we can't then don't do it because it will only add to the burden on our minds.

Interest on borrowed money usually occurs when we make a loan from an official party such as a bank, which is a place where money or debt is not uncommon. However, if you borrow money from friends or other people, it is unlikely that there will be interest unless the borrower really wants interest, but in my opinion that is unethical too.

[Fatunad]

Op thanks for bringing such discussion, it's really important.To my own understanding debt management is a pave way that reduce debt and create an avenue for making budgets and financial goals.Borrowing money is something that happens everyday, people lend huge amount of money with interest from companies, organization etc.Some people lend money with a wrong motive,like for instance borrowing to play a bet and unfortunately it doesn't turn out the way it was expected that's a wrong decision.To me debt is more like risk taking because some people sign collateral with their valuables like (house,land,car) and at the end of the day if the debt wasn't cleared at a due time the borrowers won't have the chance of redeeming the property because it has already been signed by both parties as a collateral.A debtor is never free.Debt can be reduced if only we learn how to manage it;
1.Being satisfied with what you have
2.Being contented with what you have
3.Cultivate the habit of saving from your income
4.Investing on safe haven asset like Bitcoin
5.Don't borrow with the intention of clearing old debts.
6.Being fruitful, productive and creative will help reduce debt.

As a human being, there's no such thing about being that contented. We can never to have that kind of contentment on something here in our lives. As long we do see that opportunity that we would be able to live in a life which is convenient and even if it means that you would really be needing up to take up some loan for you to acquire it, then you would definitely do it on which we know that this is something a suicide.
Its never been that recommended that you would really be taking up such action because you are just basically putting up yourself on such bad situation on the time that you would really be experiencing
that paying up tons of interest on the loan that you have gotten.

Getting up some loans for the benefit or for the purpose on making up some business expansion or making investment is much more better than in compared when you are really that
spending or getting those loans for the sake or benefit of buying up your wants and this is something that you should really be avoiding at all cost.

[tottong]

with this interest, perhaps this is a benefit that can be obtained by the borrower. but in my opinion, this also proves that loans are not free, because there is interest which can increase every day, especially if we cannot pay the debt on time. Before borrowing money, in my opinion, the thing we have to pay attention to first is whether we will be able to pay it or not, if we can't then don't do it because it will only add to the burden on our minds.

Interest on borrowed money usually occurs when we make a loan from an official party such as a bank, which is a place where money or debt is not uncommon. However, if you borrow money from friends or other people, it is unlikely that there will be interest unless the borrower really wants interest, but in my opinion that is unethical too.

Practically speaking, people must be able to recognize the nature of loans and what needs do they take the money for? Loans that we take out at official places such as banks and others will have rules where we have to follow these rules if we want to borrow.
Monthly fees and interest are an obligation for the borrower to pay and the consequence is that if they are unable to pay, the loan will be in trouble. In the end, the collateral we leave behind will be auctioned off if the loan cannot be repaid over time.
It's different from borrowing money from friends or relatives because they don't make conditions like banks. But do they dare to give large loans because we don't give them a handle? Borrowing money is not appropriate, especially if it is used to fulfill a lifestyle and people like this will never want to be free from debt.

[junder]

with this interest, perhaps this is a benefit that can be obtained by the borrower. but in my opinion, this also proves that loans are not free, because there is interest which can increase every day, especially if we cannot pay the debt on time. Before borrowing money, in my opinion, the thing we have to pay attention to first is whether we will be able to pay it or not, if we can't then don't do it because it will only add to the burden on our minds.

Interest on borrowed money usually occurs when we make a loan from an official party such as a bank, which is a place where money or debt is not uncommon. However, if you borrow money from friends or other people, it is unlikely that there will be interest unless the borrower really wants interest, but in my opinion that is unethical too.

Practically speaking, people must be able to recognize the nature of loans and what needs do they take the money for? Loans that we take out at official places such as banks and others will have rules where we have to follow these rules if we want to borrow.
Monthly fees and interest are an obligation for the borrower to pay and the consequence is that if they are unable to pay, the loan will be in trouble. In the end, the collateral we leave behind will be auctioned off if the loan cannot be repaid over time.
It's different from borrowing money from friends or relatives because they don't make conditions like banks. But do they dare to give large loans because we don't give them a handle? Borrowing money is not appropriate, especially if it is used to fulfill a lifestyle and people like this will never want to be free from debt.

That's right, to borrow money from an official place such as a bank or other, of course our aim must be clear about what the loan proceeds are used for, because if the aim is not clear then it seems that the official party will not provide a loan, and as far as I know, even before making a loan we will be asked several questions, such as our background with work and income, last educational position and other things, maybe this is to make it easier for them to find us when later we can't pay off and maybe also background such as work and income is one of the requirements to be able to take out a loan, because my friend, who doesn't have a job and no income, was also born from a poor family, he always failed to apply for a loan at an official place like a bank.

What you say is correct, of course taking out a loan from a bank is different from borrowing money from a friend, and yes the difference is in the requirements, maybe with friends there are also requirements but it won't be exactly the same as borrowing from a bank. Borrowing money to fulfill a lifestyle is not a good thing, what's more, in my opinion, people who will take out loans to fulfill this lifestyle are more identified with young people. It is unlikely that those who are married will borrow money to fulfill their lifestyle, and even if there is, I don't think they can think clearly, why should they borrow money to be fashionable, even though they need to pay more attention to their needs.

[teamsherry]

Well, not paying debts on time will cost you more though as there will be another interest on top of your monthly amortizations. So, that will force everyone to pay on time. Maybe paying ahead of time when you have available money in your pocket is what we call a responsible payer. Paying on time can be missed sometime especially when there is an unforeseen circumstances that happens and will require an immediate funds, those funds intended to pay for debts maybe used in such cases.  That is just one of many example why we are missing a payment, so it is always better to pay ahead of time, let's say pay it a week before the actual due date.

I stopped collecting debt because whenever I missed the due date, the interest rate would be increasing daily and if I don't have money to pay on time then the interest would be accumulating to a reasonable amount again before I would have money to pay the interest would be almost equal to the capital. So I don't like loan at all. Except someone I know gave me the funds and we are agreed that they would be no interest to add them I will take the loan and pay back on time because they person too has programmed himself to use that money on that due date so any failure to provide that money, will also affects his plans. So those are some of the technics for debt management.

The kind of loans you are talking about here is the kind that comes from family and friends, no financial insight or legal money lenders would do that for you.

Debt IMO in not such a bad thing and can also be used in other ways, the only thing I frown on is when people take loans to solve problems like liabilities, how would you consider taking a loan to buy a PlayStation game or maybe a loan yo eat or get a dress, that is wrong usage of debt, debt should be used to make money.

[milewilda]

Do not borrow funds to clear debts

Dont tend to have this kind of approach on which you would really be digging your own grave. Paying up a loan via another loan? You are just that piling your interest.
On the time that you cant be able to bare up with the interest anymore then this is the time you would be able to realize that it is really that very wrong on the thingthat you have done.
When you do have a debt then you should really be that arranging it out on how you would really be gonna repay it specially if its really that a multiple one.

You should really be that sensible on the things that you've been dealing or making up decision with because if you dont then you would really be finding yourself at great
trouble on which this is something that should be avoided in the first place.

[bitcoin_mining]

Banks in every country offer loans to their customers in several stages. In the country where I live, banks usually offer relatively low interest loans for a few things. I can take money loan for building our house here as well as for business I can take money loan and I can also take loan for agriculture. But there are certain conditions in these cases and the bank will give me a loan according to my position subject to certain conditions.

[Yaqs15]

Managing debt can feel like a never ending battle, but it you follow the right moves, and stay dedicated you can do it.  I think one of the biggest first steps for a lot of people with a great deal of debt is simply running a monthly budget.   This was lay out all your monthly expenses, make sure you're spending money where it should be spent, and not where it shouldn't.  This goes A LONG WAYS!

  Yes, especially when you are a monthly earner. You can figure out specific amount of money to be saved for an unforeseen circumstances that might come across your ways. If such things happen, you can easily deal with them without the knowledge of anybody.
One should try to discipline himself by learning how to manage the little resources that you have instead of living beyond your earnings. there's a saying which state that cut according to your size. this means, one should buy what he can afford to buy and before buying or spending money on anything, you should try to know it's importance and benefits you can derive from it to avoid regret at the end.

Avoid spending beyond your budget

You wont really be having no debts if you would really be living according into your means or something that in talk about sticking into your budget because once
you do make yourself that go beyond those numbers then most likely you would really be getting up some loan for you to be able to have some patching which its not really that a good idea.
This is why it would really be that best that you should really be having that strict budgeting if you dont really that putting up yourself on such trouble.
Avoid on taking up some loans as much as possible if it wasnt needed not unless if it is for the sake of business or investment then it might be reconsidered but if not then
better not to do such thing or action.

For a successful living, if one wants to take loans, before doing that, make sure you have the full knowledge of what you are doing and how possibly it might end up. Although, nobody knows what would happen if it hasn't happened, but still, some time you can predict due to the kind of experience that you have gotten from the previous time.
  So, we aren't saying you can't take loans, you can take it if you want to but take the necessary precautions before taking it. That can be done by some of the following;
1. knowing the principles guiding it, like the duration for the repayments of the loan. make sure you can be able to repay it with in the time specified.
2. Also make sure of what you are using the loan for like it's legitimacy.
3. Your own ability and capacity that's by making sure if you are good to go on your own

[teamsherry]

@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.

Only a very foolish or unprofessional investor would invest in a business that has no statistics or isn't already established. I Don't advice to borrow money to start a business cause there isn't any guarantee that the business would stand and if it doesn't you have a debt on your head to pay. But it's better to borrow money to support your business or establish it bigger after the foundation has already been set by you and that way it's easy to get investors in too.

Debt is good for those that understands it and I still stand that debt is used properly can generate good wealth for you.

[slapper]

Do not borrow funds to clear debts

Dont tend to have this kind of approach on which you would really be digging your own grave. Paying up a loan via another loan? You are just that piling your interest.
On the time that you cant be able to bare up with the interest anymore then this is the time you would be able to realize that it is really that very wrong on the thingthat you have done.
When you do have a debt then you should really be that arranging it out on how you would really be gonna repay it specially if its really that a multiple one.

You should really be that sensible on the things that you've been dealing or making up decision with because if you dont then you would really be finding yourself at great
trouble on which this is something that should be avoided in the first place.

The whole "borrow more to fix your debt" ruse is fraud. Interest builds, digs deeper, and before you know it, you're drowning. Everyone can lead, okay? Knowing how this mechanism works is powerful. Choose the debt with the highest interest rate; the most financial drain. Like fighting your way out of a tight place, focus on the biggest threat first

Not scrambling to pay off debt, but altering the game. Adjust your spending. Cut unnecessary expenses, set a budget, and follow it. Not a temporary fix; this is a new money management strategy. Nobody expects you to accomplish this alone. Feel free to ask for help if it's too much. Someone else's perspective can change everything. Don't despair or retreat

[Dewi Aries]

Personally not wrong with debt or taking loan for business capital depend has balance under 20% loan of assets having, but many people take risk with bigger debt or loan than how much assets they have and get collapse with their business have to sell all their property or assets to recovery loan interested.
I think debt management is very important for businessman want take loan for their business capital, during have balance and under 20% of assets of loan its not much problem and still can recovery for loan interest when the business not running well.
Currently problem, the businessmen not make good roadmap when taking loan and looking the opportunity on one side only about profitable earn and ability to recovery loan interest, but if the business fail how to pay loan interest because most bigger debt than assets having?

Indeed, taking out a loan is not wrong, especially if we want to start a business, but it is true that even though we can take out a loan to start a business, of course we have to be able to balance everything so that we don't borrow money, but that will only make us more miserable. If you really want to start a business or venture but don't have enough money to use as initial capital, then taking out a loan is one way you can do it, but you also need to pay attention to this and not do it carelessly.

To be honest, in my opinion, if we really want to do a business or business, we have to be able to think about the risks too, and in my opinion there are people who are very enthusiastic about starting a business so they can take out a loan to start it, but they tend to only think about the profit side, therefore They only think about the benefits, so they don't think about the risks that might definitely happen, especially to those who don't think about it.

[RockBell]

Banks in every country offer loans to their customers in several stages. In the country where I live, banks usually offer relatively low interest loans for a few things. I can take money loan for building our house here as well as for business I can take money loan and I can also take loan for agriculture. But there are certain conditions in these cases and the bank will give me a loan according to my position subject to certain conditions.

Before you can be granted loan there will be a lot of assessments before your loan can be granted because of people that will default. I don't see the reason why you take loan and you will not want to pay back. I think that will depend on countries because banks are known for there high interest rates when ever you take loans. Taking  a loan make sure is for something relevant. And loans for houses you have to have a good salary scale before you can be granted such loan. And some in there terms and conditions you need to provide a collateral worth the amount of the loan and a guarantor. If you meet up with there conditions then you will be granted the loan with ease.

[GeorgeJohn]

This one thing that we don't understand in the aspect of borrowing when you know that you have a project that you want to execute and you need the money to carry out the project pcfully I think there is nothing bad for someone to make sure that it has borrowed the money to bring out the image or the picture of what he or she want because there is no life without a debt and the for you to succeed in life you most take a risk

[boyptc]

Debt is good for those that understands it and I still stand that debt is used properly can generate good wealth for you.

For business, it's actually a good debt. But for someone who'd use debt for his personal pleasure, it's a bad debt and not recommended to you.

What most of the people don't understand about debt is using it for important and emergency purposes. But nowadays, people are also taking care of their mental healths and using debts for their pleasure and vacation.

Well, that's them and I am not going to ask for a debt and will use it for vacation. If I can't afford to go on, then I won't go and will save up for that.

[TEBTC]

One of the main reasons people become deptors is not living according to their standard as living a lavish life style with out a proper planning will eventually lead's to you borrowing

[Princess Leah]

One of the main reasons people become deptors is not living according to their standard as living a lavish life style with out a proper planning will eventually lead's to you borrowing

That's true, living a lavish lifestyle is one way someone could be forced to acquire more depth, especially when the person is not very wealthy. For instance an average person who owns a Toyota carmy but desires a GLK could be forced to go take loans to satisfy his/her desire and acquire the GLK which is not very important  at that moment. You could image such person depositing a landed property as a collateral to get loans to acquire the car.

 Automatically, the person becomes a debtor and not only that but would end up losing an asset because of a desired property that's not fetching the person some money but could become a liability because the person would end up spending more on not only maintenance but on fuel because he's no more using an economic vehicle but a luxurious one that would consume more fuel.

 This is the more reason why people should live according to their limits, do not be oppressed by anyone or live a life beyond your budget to impress people, else you midht end up putting yourself in a huge debt you'll live to regret.