Debt Management.

[tsaroz]

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

I too believed that taking a debt is not a good idea and risky. But as I calculated my finance and mortgage, a long term loan to buy rising assets or things that helps you like land or doing business or even buying a car seem to be better option when you are paying it in multiple years. If the interest rate you pay are lower than inflation or your salary rise, you are in better position.
I took some loans for purchasing land and paid it in 7 years, On that period of time, the price of land doubled while my salary rose more than 50%. You should not be afraid of taking loans if you have two income sources in family and one alone is able to payback in worse case scenario.

[Mayor of ogba]

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

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes. One can get a contract and the nature of the contract may require you to use your personal funds and execute the project before the company or organization will pay you so in that situation, if you don't have money you can borrow in other to clear the project knowing fully well that after the project your money with be paid immediately.

You are correct, but if you find yourself in that situation and you don't have money to execute the contract, don't go and borrow money to execute the contract because such contracts usually take time before they can pay you the money assigned to that contract. If you don't receive the money for the contract on time, you will find it hard to repay your debt when the debt is due for repayment because the money for the contract that made you borrow money hasn't been paid to you. Just allow someone else who has enough money to take the contract so that you will not find yourself in difficult situations or trying to get money elsewhere to repay your debt so that it will attract extra interest.

[Tmoonz]

Taking loans for business purposes is never a bad idea, especially if you know that your business can generate enough revenue using that loan to make it possible to repay the loan on time or even before it. In your case, this was exactly what happened because you already had your business started, and you were witnessing the demand for certain products that you knew would generate good revenue for the business, so you felt confident taking the loan because you knew it in advance that you are going to repay the amount before time.

Actually taking a loan to execute a profitable business that the proceeds can be gotten in a short period is good but to me if the demand for a particular goods or products is high doesn't necessarily mean you will enter into borrowing just to please your customers and also make some profits because sometimes, customers do demand for a particular product but as soon as you make the product available for them they may not turn up to patronize you again because at that time you didn't have it they must have gone to buy it elsewhere and may even buy it cheaper over there so they will prefer going there from time to time with the belief that you sell things at higher prices to them

However, it's never a good habit to take personal loans when you don't have a stable source of income and you are not sure whether you will be able to repay the loan on time or not because when you are not earning money at all or not earning constantly, you will only become a defaulter at the end of the day and that isn't a good practice.

If you even have a steady income what's the essence of taking a loan when you can easily be patient till your income arrives then you can purchase whatever you need and if it is something that is more than your earning per week or month then you can save up and get it instead of taken a loan.

So there are good debts and bad debts, a good debt is the debt that is easily payable and wouldn't create problems and a bad debt is the one that will get the borrower in trouble because they won't be able to pay it easily.

To me there is nothing like good debt and bad debt, all debts are equal inasmuch as you haven't paid a debt you are owing. Even if you take a loan and use it for something important that you know you gonna pay back within a short period, what if where you hope on fails you? And again when paying back a loan it looks as though you are paying a free money to your lender and it also takes you backwards because the income you would have planned to use for other things you will spend it in settling outstanding debts.

@Richbased, I would have really do fine your naratives some worth problematic but yeah every gat to figure out what will work for him or probably do whatever they like, but I could say that one of the reasons why some people are improving in their lives than others is because they have chosen to to take advantage of what other peoples ignored. However, no one can ever force you in to collecting a loan it is choice to and not to collect a loan, collecting a loan can be good if the intention is to maximize profits or to influence life positively, no one should take a loan to do something meaningful for him or her self with so much negativity, their should be some certain high level of positivity towards your planning, I really think I have to say this, I was denied of admission in the university twice because there was no money as at then for me to go to school, on the third occasion I insisted after making several researches about undergraduate scholarships schemes within my jurisdiction, of which I trusted myself so much and I talked to my parents about it telling them that there wouldn't have been no better chances of me going to school that I wouldn't want to miss this third opportunity again, with so much positivity my dad took a loan with one of his landed property as a collateral and took a loan for me to clear up my acceptance fee and and school fee and keep the remaining one for myself while going to school, before the end of the first semester I  have already written three scholarships exams, my church started a scholarship scheme that year that was fortunate enough for me, and the two others was TOtal e&p undergraduates scholarship, and NLNG undergraduates scholarship, and my name got listed in the church and Total e&p undergraduates scholarships and the debt was cleared even before the due time and I went through school without stress.

[Richbased]

@Richbased, I would have really do fine your naratives some worth problematic but yeah every gat to figure out what will work for him or probably do whatever they like, but I could say that one of the reasons why some people are improving in their lives than others is because they have chosen to to take advantage of what other peoples ignored. However, no can ever force you in to collecting a loan it is choice to and to collect a loan, collecting a loan can be good if the intention is to maximize profits or to influence life positively, no one should take a loan to do something meaningful for him or her self with so much negativity, their should be some certain high level of positivity towards your planning, I really think I have to say, this, I was denied of admission in the university twice because there was no money as at then for me to go to school, on the third occasion I insisted after making several researches about undergraduate scholarships schemes within my jurisdiction, of which I trusted myself so much and I talked to my parents about it telling them that there wouldn't have been no better chances of me going to school that I wouldn't want to miss this third opportunity again, with so much positivity my dad took a loan with one of his landed property as a collateral and took a loan for me to clear up my acceptance fee and ans school fee and keep the remaining one for myself while going to school, before the end of the first semester I ha have already written three scholarships exams, my church started a scholarship scheme that year that was fortunate enough for me, and the two others was TOtal e&p undergraduates scholarship, and NLNG undergraduates scholarship, and my name got listed in the church and Total e&p undergraduates scholarships and the debt was cleared even before the due time and I went through school without stress.

I understand your point @Tmoonz on being positive but one of the reasons why most people finds their selves in some kind of unfortunate situations is because they didn't look at the other way round like if after being positive about something and at the end it didn't work in your favour.

Life is a risk and sometimes these risks takes us to our destination but we shouldn't underestimate the fact that we can also take this risks and things end up not going as planned that is why it is good to have that feeling should in a case where something doesn't work in our favour we can be able to handle such situation.

Inasmuch as a know education is a knowledge that every parents that have well-being of their children at heart can lease, sell or use their assets to sponsor their children to school because the child is also a good asset worth investing on such that he can become a better person tomorrow after acquiring education and become successful they can decide to replace those assets that their parents lost why seeking for a better future for their children.
If it is about education, it is something worth taking a loan to go to school inasmuch as the child is intelligent enough to know his aim while going to school and to focus and bring in his best to make sure he doesn't discontinue no matter the challenges they may face while studying.

Your story is a good one as you are lucky even though you may be smart and intelligent but however it is not a prerequisite to the reason why you got a scholarship and from there the debt your dad incurred on your behalf was settled, have you ever checked the other way round if had it been you didn't succeeded in getting the scholarship? Maybe your dad would have sold the land to repay the debt isn't it? And lost a valuable asset in the course of looking for a brighter future for you and it would have been a challenge to you to replace that asset when you finally become successful.

[Oasisman]

Debt management were really talked less about and it's really underrated because people think they can always have the capability to pay those debts without worrying to much.
But, as a person who live in a 3rd world country, I have experience being deep into debt for more than 3 years when I was still earning at the minimum wage. I can't help but I had to rely on this kind of debt:

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.

It somehow help me to pay my debts on time and allow me more time to gather financial resources to pay the new debt accumulated. This has been the cycle until I finally get away with it and learned the hard way about the reality of debts. That gives me a lesson not only about debts, but to work my ass up double time to avoid from getting those debts back because of financial struggles.

[Samlucky O]

We should face the fact that there are  a lot of debt systems in the world in the past 20-50 years, and many of them building up more and more, and there are ways to take advantage of such systems without abusing them or putting yourself in a bad situation - so debt can be used in a variety of smart ways in order to enhance cashflow or even build up a credit score for potential future use (Tmoonz mentioned) - that could also be thought of as a kind of insurance policy.

sure, people can utilise the opportunity of loan without themselves in a bad situation. before we should take loan, there should be a concrete need for it, expecially a profitable business that gives you profit in a short or long term, depending on the loan duration. sothat you will be able to return the loan in due time and boost your credit score. I also have similar case with Tmoonz. there was this business that came to me back then to supply wood to a mini company, the person that has this contract doesn't have finance to run it, he introduced it to me and I opt in for a loan back then, and guest what I did the contract as fast as possible and made alot of profit and returned the borrowed money including the interest rate and I was left with %30 profit. so there are situation that needs to acquire loan but not taking it for what is necessary otherwise you get into a trouble and you will have a bad credit score.

Frequently with debt things could be purchased at an earlier time that otherwise might not be affordable - including if you might have to wait 10 or more years to save up and you might lose some of the value of time, whether that is buying a home that you might never be able to buy if you had to save up in dollars that are losing their value.. .. of course, these days we have bitcoin, which is likely (at least historically) has been a way better way to be saving up for some future high ticket item purchase, such as a house.

it depends on the loan duration, if the loan permit 10years and above then there is need to take advantage of it at earlier stage before it becomes expensive expecially a volatile assets.

And, yeah, the whole system of debt is screwed up since many folks have to get into debt in order to get a higher education, and sometimes that can make sense if you are later able to increase your social status or your job skills and perhaps be able to get into social/employment circles that you would not have previously had been able to enter.

yea to be able to pay back such dept one needs to increase h/her job skill to be able to pay off such dept, there is no way a person can take a dept for education and be doing a minimal job to pay such money, rather h/she will have needed to acquire a higher paying job which he may have previously not had before, to be able to apply for such loan because acquiring a loan for education before looking for a higher paying job may sure way Puting him self I some kind of bad situation expecially when the desire work does not come as predicted.

It seems in this thread that a lot of members are focusing on the negative aspects of loan, which seems to include both when people are getting loans for potentially ill-thought out reasons, and so sometimes they will end up getting into bad situations when they are using loans to consume beyond their means. but maybe not realizing that they are engaged in such ill-thought out practices, and surely those are things that happens with loans - but the mere fact that people use debt in bad ways and don't know how to manage it does not mean that it cannot be a powerful thing that we should be able to use to our advantage..

why people exphasis much I'll-thought about dept in this thread is lack of proper use of dept. most people leave life above there earning they usually overspend there salary and go for loan. and most of this loan or dept taken is not use for business purpose but for consumption propose there by Puting themself in jeopardy or in a confused manner. sometimes the actual reason or goal for acquiring for loan has not been concluded, they spent it ahead of the porpos of loan and it causes setback, that is the reason they have  I'll-thought in dept.

[Zackz5000]

I don't agree with that very part I bolded, there is nothing absolutely wrong optioning for a loan if the intention is to increase your credit score, my wife and I are testimony to this, we actually relocated in to a new area and later started a provision shop in front of the house of which we discovered that there where no provisions shops in that area we took that advantage and started one with few items just as little as our we can afford at that time, but as time goes on there were several demands of certain goods which were not available because of our limited capital but considering the intensity of the demand of those goods that were not available, we took a loan to buy those goods and we paid back even before the expected time  and that has expanded our business and boost our credit scores, no one should be a debtor on the occasion of trying to sustain or maintain a lifestyle. However, many find it difficult to pay  debt as a habit even when they have it this is one simple truth that is very bitter.

Taking loans for business purposes is never a bad idea, especially if you know that your business can generate enough revenue using that loan to make it possible to repay the loan on time or even before it. In your case, this was exactly what happened because you already had your business started, and you were witnessing the demand for certain products that you knew would generate good revenue for the business, so you felt confident taking the loan because you knew it in advance that you are going to repay the amount before time.

However, it's never a good habit to take personal loans when you don't have a stable source of income and you are not sure whether you will be able to repay the loan on time or not because when you are not earning money at all or not earning constantly, you will only become a defaulter at the end of the day and that isn't a good practice.

So there are good debts and bad debts, a good debt is the debt that is easily payable and wouldn't create problems and a bad debt is the one that will get the borrower in trouble because they won't be able to pay it easily.

We should face the fact that there are  a lot of debt systems in the world in the past 20-50 years, and many of them building up more and more, and there are ways to take advantage of such systems without abusing them or putting yourself in a bad situation - so debt can be used in a variety of smart ways in order to enhance cashflow or even build up a credit score for potential future use (Tmoonz mentioned) - that could also be thought of as a kind of insurance policy.

Frequently with debt things could be purchased at an earlier time that otherwise might not be affordable - including if you might have to wait 10 or more years to save up and you might lose some of the value of time, whether that is buying a home that you might never be able to buy if you had to save up in dollars that are losing their value.. .. of course, these days we have bitcoin, which is likely (at least historically) has been a way better way to be saving up for some future high ticket item purchase, such as a house.

And, yeah, the whole system of debt is screwed up since many folks have to get into debt in order to get a higher education, and sometimes that can make sense if you are later able to increase your social status or your job skills and perhaps be able to get into social/employment circles that you would not have previously had been able to enter.

Sure, the business or investment examples are not a bad ones either, and yes that relates to productive rather than consumptive purposes, and so some of the ways of thinking about a loan would be to consider how much the loan is costing to service  - which surely such costs of any loan can be projected out and surely some folks are able to garner better loan terms than others (both in terms of length of the loan and interest rate), partly based on credit score, but also might be based on putting up collateral.  Part of the calculation for the loan should be a consideration that whatever you are doing with the loan is going to be able to earn you equal or more money than it costs you to get the loan.. and surely some of those future numbers are not completely known, so many times there will be some risks in terms of being wrong in your calculations, so surely you should be trying to make sure that you are able to service your loan (in whole or in part) from funds that are other than the thing(s) that you are investing into.

It seems in this thread that a lot of members are focusing on the negative aspects of loan, which seems to include both when people are getting loans for potentially ill-thought out reasons, and so sometimes they will end up getting into bad situations when they are using loans to consume beyond their means. but maybe not realizing that they are engaged in such ill-thought out practices, and surely those are things that happens with loans - but the mere fact that people use debt in bad ways and don't know how to manage it does not mean that it cannot be a powerful thing that we should be able to use to our advantage.. especially if we either have cashflows to service debts, we may be able to increase our cashflows with such debt and/or we might have various assets that we are able to put as collateral .. and surely maybe some of our assets are accumulating value at a rate that is equal or greater than the costs of servicing the debt (whether there may be ways to use bitcoin as pristine collateral or other forms of collateral that we might believe is more valuable to hold onto rather than to sell.. but still be able to generate cashflow by using debt - and some of the ways of managing debt can be complicated and not necessarily one would want to do without employing ways of hedging themselves).

I believe few of those ways to take advantage of such system with out abusing them or putting your self in a bad situation is as follow.

1. Having a source of income Most persons intend optioning for a loan without any means of paying back the loan in due time putting them in more danger when they could not pay back.

2. Having an existing investment or business When you have an existing business or investment who's aim and intension is to upgrade your investment or cash flow the loan will be of great help to increase your business growth by this you will be able to achieve it and even pay your Dept in due time because there is already an existing investment which with the help of the loan taken has upgrade the business or your investment into a higher level.

3. Having good intention or plan before optioning for a loan Most persons dont have any good intention when taking loans most people take loan to solve problem believing having the money back before the due loan date without doing any good thing to keep the money ready before due time or believing miracle will happen before the required date at the end they are been unable to pay back putting them into worst situation.

[Obulis]

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

[ultrloa]

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

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes. One can get a contract and the nature of the contract may require you to use your personal funds and execute the project before the company or organization will pay you so in that situation, if you don't have money you can borrow in other to clear the project knowing fully well that after the project your money with be paid immediately.

You are correct, but if you find yourself in that situation and you don't have money to execute the contract, don't go and borrow money to execute the contract because such contracts usually take time before they can pay you the money assigned to that contract. If you don't receive the money for the contract on time, you will find it hard to repay your debt when the debt is due for repayment because the money for the contract that made you borrow money hasn't been paid to you. Just allow someone else who has enough money to take the contract so that you will not find yourself in difficult situations or trying to get money elsewhere to repay your debt so that it will attract extra interest.

What's important thing people need to realize that if they don't need those things maybe they should stop to pursue it especially if they don't have funds to spend and also not sure if they can get a good result for their decisions made. To should engage on anything if they are fully prepared or already have funds to spent and they should never try to risk anything using their borrowed money since for sure everything will really fucked up if their expectation will never meet and this will lead them to a double lose since they need to pay the interest of their loaned amount and they also lose their money for what wrong decisions they do. And if they  think borrowing some funds again to cope up their payment then paid their loan according to the date they negotiate for the first borrower they better erase those thoughts since this will add up to their problems. A proper settlement to the lender for sure work and he provably give you a best set up so you could pay without getting more hardship in life. To avoid this situation we should better plan each decision we made and always have doubts to take loan so that we can get away on stress brought by this avoidable mistake.

[Zackz5000]

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?

I disagree with you on the area I bolded and it sounds discouraging to those that there only hope they can start up a small business is to option for a loan. One thing you should realized is that there is a different between optioning for a loan to invest or start up business and borrowing money for mere consumption/ things that won't generate money.
For it is better to start up something rather than doing nothing, we all know that life is full with risk, taking a bold step optioning for a loan to start up a business is not a bad one because you be blessed through it.
The point of sales (POS) business am doing well now is as a result of the money I borrowed to start it up I started with low amount that I borrowed I took the risk to do it because nobody was there to help but the loan I took help. So your adivse will be misleading to those that will want to option for a loan to start up something good for themselves.

[boty]

I too believed that taking a debt is not a good idea and risky. But as I calculated my finance and mortgage, a long term loan to buy rising assets or things that helps you like land or doing business or even buying a car seem to be better option when you are paying it in multiple years. If the interest rate you pay are lower than inflation or your salary rise, you are in better position.
I took some loans for purchasing land and paid it in 7 years, On that period of time, the price of land doubled while my salary rose more than 50%. You should not be afraid of taking loans if you have two income sources in family and one alone is able to payback in worse case scenario.

Taking a long-term loan and using it to buy assets that will experience an increase, of course this will make us financially stable in the future, but we also have to see whether the interest offered is high or not because if the amount of interest we have to pay is very large, of course will make it difficult for us to pay it off, buying land will of course be very profitable for us because the price of the asset will continue to increase day by day, before we decide to take out a loan of course we must have thought about how to pay it off and never take out a loan if we can't finish it.

[Frankolala]

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?

I disagree with you on the area I bolded and it sounds discouraging to those that there only hope they can start up a small business is to option for a loan. One thing you should realized is that there is a different between optioning for a loan to invest or start up business and borrowing money for mere consumption/ things that won't generate money.
For it is better to start up something rather than doing nothing, we all know that life is full with risk, taking a bold step optioning for a loan to start up a business is not a bad one because you be blessed through it.
The point of sales (POS) business am doing well now is as a result of the money I borrowed to start it up I started with low amount that I borrowed I took the risk to do it because nobody was there to help but the loan I took help. So your adivse will be misleading to those that will want to option for a loan to start up something good for themselves.

It all boils down to the kind of business that you want to start up with a loan. If it is a business that you need to rent a shop and buy goods into the shop for business, I will say that it is very risky to take a loan to startup such business, especially when you are new into the business. This is because there are some unforeseen challenges that might arise in the early stage that you might not be able to overcome, but it can be overcome gradually as time passes by.

This is why whenever anyone wants to start a business, that person must have an extra funds available which can stand as an emergency funds incase an ugly situation happens during the baby state of the business, that money will be used to pump into the business so that it does not collapse. If you take a loan to start up a business in which you rented a shop, how will you pay your shop rent when it expires and you are not even through with paying back your loan. You will end up packing up.

This is why one must think carefully on the kind of business in which he needs a loan for, and also consider how to grow the business and the threat associated to that business. So that you can easily payback your loan and your business is still running. Another thing is for you to have a job or means of income as a backup plan, before taking a loan to start up a business

[Zackz5000]

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?

I disagree with you on the area I bolded and it sounds discouraging to those that there only hope they can start up a small business is to option for a loan. One thing you should realized is that there is a different between optioning for a loan to invest or start up business and borrowing money for mere consumption/ things that won't generate money.
For it is better to start up something rather than doing nothing, we all know that life is full with risk, taking a bold step optioning for a loan to start up a business is not a bad one because you be blessed through it.
The point of sales (POS) business am doing well now is as a result of the money I borrowed to start it up I started with low amount that I borrowed I took the risk to do it because nobody was there to help but the loan I took help. So your adivse will be misleading to those that will want to option for a loan to start up something good for themselves.

It all boils down to the kind of business that you want to start up with a loan. If it is a business that you need to rent a shop and buy goods into the shop for business, I will say that it is very risky to take a loan to startup such business, especially when you are new into the business. This is because there are some unforeseen challenges that might arise in the early stage that you might not be able to overcome, but it can be overcome gradually as time passes by.

This is why whenever anyone wants to start a business, that person must have an extra funds available which can stand as an emergency funds incase an ugly situation happens during the baby state of the business, that money will be used to pump into the business so that it does not collapse. If you take a loan to start up a business in which you rented a shop, how will you pay your shop rent when it expires and you are not even through with paying back your loan. You will end up packing up.

This is why one must think carefully on the kind of business in which he needs a loan for, and also consider how to grow the business and the threat associated to that business. So that you can easily payback your loan and your business is still running. Another thing is for you to have a job or means of income as a backup plan, before taking a loan to start up a business

Life it self is all about risk, for one to make it in life one needs to take some calculated risk. I understand the area you are talking about starting a small scale business  doesn't necessarily mean one must rent a shop before starting up business, you can start by Hawking on the street gradually as to time goes on you can now think of renting a shop by that time your business might have stand strong or grown to a higher level then you can think of expansion by renting a shop then.
There are many lucrative business that may not necessarily required renting a shop at first start expecially the country I came from.

[Freeesta]

Yes, having debts is not a very pleasant thing. But you never know what might happen in the future. I don't want to have debts, but if I need money for my own business, for example, I think I can go to the bank. There is a risk of losing some money and not making a profit. But there is an opportunity to earn a lot of money! I won't rule out this possibility. If you make the right calculations and take into account the risks, you can pay off your debt early and still do what you love.

[ancafe]

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

Get to know the nature of loans so that we can make a decision to take them. Loans that are not consumptive will not provide any value and instead we are trying to add to the problem. It is the same as risking risk when taking out a loan and if the loan can be used well it will generate wealth from the capital used from the loan. It's different when talking about loans to make investment or trading plans and in my opinion that's not quite right, unless we have other financial sources to cover the monthly costs for the loan.

Bitcoin is very risky to invest using money that is not ours because it is possible that along the way we will see a correction process. In conditions like this we will be faced with problems if we don't have other sources of income, there is no problem taking a loan if we know how to solve it and don't add new problems.

[slapper]

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

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes. One can get a contract and the nature of the contract may require you to use your personal funds and execute the project before the company or organization will pay you so in that situation, if you don't have money you can borrow in other to clear the project knowing fully well that after the project your money with be paid immediately.

You are correct, but if you find yourself in that situation and you don't have money to execute the contract, don't go and borrow money to execute the contract because such contracts usually take time before they can pay you the money assigned to that contract. If you don't receive the money for the contract on time, you will find it hard to repay your debt when the debt is due for repayment because the money for the contract that made you borrow money hasn't been paid to you. Just allow someone else who has enough money to take the contract so that you will not find yourself in difficult situations or trying to get money elsewhere to repay your debt so that it will attract extra interest.

What's important thing people need to realize that if they don't need those things maybe they should stop to pursue it especially if they don't have funds to spend and also not sure if they can get a good result for their decisions made. To should engage on anything if they are fully prepared or already have funds to spent and they should never try to risk anything using their borrowed money since for sure everything will really fucked up if their expectation will never meet and this will lead them to a double lose since they need to pay the interest of their loaned amount and they also lose their money for what wrong decisions they do. And if they  think borrowing some funds again to cope up their payment then paid their loan according to the date they negotiate for the first borrower they better erase those thoughts since this will add up to their problems. A proper settlement to the lender for sure work and he provably give you a best set up so you could pay without getting more hardship in life. To avoid this situation we should better plan each decision we made and always have doubts to take loan so that we can get away on stress brought by this avoidable mistake.

Debt is strange. Getting the flashy thing immediately instead than waiting is attractive. But it makes you really exposed. Every credit purchase and loan is a bet. A gamble that you can pay, that your purchase won't depreciate, and that your income won't drop. You're in trouble if that goes wrong. What you owe becomes what you owe plus the ridiculous interest. You work to survive.

I'm not suggesting debt is always bad. But Is it necessary? Something with future returns? If not, chances are it's trap. Saving is the best play and most powerful. Saving regularly. Yes, it's less interesting now, but with cash, you're in control. You can get better bargains, walk away from bad ones, and control your destiny. Owing someone money is stressful.

Think beyond yourself. This debt mindset permeates everything. Doing so cripples nations. In pursuit of short-term gains, the future suffers.  We must rethink money and focus on long-term stability and solid foundations. That benefits everyone.

[Mayor of ogba]

I totally agree with everyone that said it's better not to even go into debt 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.

I don't agree with that very part I bolded, there is nothing absolutely wrong optioning for a loan if the intention is to increase your credit score, my wife and I are testimony to this, we actually relocated in to a new area and later started a provision shop in front of the house of which we discovered that there where no provisions shops in that area we took that advantage and started one with few items just as little as our we can afford at that time, but as time goes on there were several demands of certain goods which were not available because of our limited capital but considering the intensity of the demand of those goods that were not available, we took a loan to buy those goods and we paid back even before the expected time  and that has expanded our business and boost our credit scores, no one should be a debtor on the occasion of trying to sustain or maintain a lifestyle. However, many find it difficult to pay  debt as a habit even when they have it this is one simple truth that is very bitter.

I agree with you that there is nothing wrong with taking a loan to start up a business or expand your existing business to get the goods you need in the area where you are running your business or to sort out a pressing issue. For instance, you can be expecting money in the next two months before you know what is happening an urgent emergency occurs, you can take a loan to solve the emergency. When the money you were expecting arrives, you can repay your debt. Some people are in debt not because they don't have the money to repay their debt, but because they find it very hard to repay their debt when they have money.

[Lanatsa]

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

Get to know the nature of loans so that we can make a decision to take them. Loans that are not consumptive will not provide any value and instead we are trying to add to the problem. It is the same as risking risk when taking out a loan and if the loan can be used well it will generate wealth from the capital used from the loan. It's different when talking about loans to make investment or trading plans and in my opinion that's not quite right, unless we have other financial sources to cover the monthly costs for the loan.

Bitcoin is very risky to invest using money that is not ours because it is possible that along the way we will see a correction process. In conditions like this we will be faced with problems if we don't have other sources of income, there is no problem taking a loan if we know how to solve it and don't add new problems.

Loans arent that bad if you do really just that know on where it would really be applied or would really be used because if you do take up loans just for the sake on buying up something or
specifically, on trying out to buy your wants then this is the most dumb decision that you would really be making. Never ever consider on taking up some purchases with loan amounts and it would be
always better that you should really be contented on what you do have and never ever take up some loan just because you are liking something. Having some loans or debts because its been applied in
business then this is something that we can really say that it is really something worth but well not all people do have the same mindset.

Majority of us wont really be that minding that much about as long we are making money our job salary then we would really be that confident on taking up some loan until the time comes that you would
be suffering some debt problems and if you cant really be able to make yourself that get out then it would really be surely a devastating thing. This is why you should really be careful
on dealing with it and as much as possible you should really be avoiding it if its not really that needed.

[Zackz5000]

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

Get to know the nature of loans so that we can make a decision to take them. Loans that are not consumptive will not provide any value and instead we are trying to add to the problem. It is the same as risking risk when taking out a loan and if the loan can be used well it will generate wealth from the capital used from the loan. It's different when talking about loans to make investment or trading plans and in my opinion that's not quite right, unless we have other financial sources to cover the monthly costs for the loan.

Bitcoin is very risky to invest using money that is not ours because it is possible that along the way we will see a correction process. In conditions like this we will be faced with problems if we don't have other sources of income, there is no problem taking a loan if we know how to solve it and don't add new problems.

The process of taking a loan to invest in Bitcoin is not a good idea unless you are planning for short term investment which will not still be possible unless there is another source of income that generates income for you but with the DCA strategy there is no need optioning for a loan, and it will still enable you to accumulate more Bitcoin weekly or monthly with the money that comes from your other income source and it will also help to keep reserve fund, emergency funds and float fund which will help you in hodling your Bitcoin investment for long term 4-10 years and above.

[avp2306]

At times in someone's life, being credited by a money agencies or people etc is part of the risk one might need to take in life as people has actually built wealth with debt... That means being a good debtor in the first place by applying every possible debt management strategies being reviewed here not minding life's unforseen happenings. BTC business is inclusive..

Get to know the nature of loans so that we can make a decision to take them. Loans that are not consumptive will not provide any value and instead we are trying to add to the problem. It is the same as risking risk when taking out a loan and if the loan can be used well it will generate wealth from the capital used from the loan. It's different when talking about loans to make investment or trading plans and in my opinion that's not quite right, unless we have other financial sources to cover the monthly costs for the loan.

Bitcoin is very risky to invest using money that is not ours because it is possible that along the way we will see a correction process. In conditions like this we will be faced with problems if we don't have other sources of income, there is no problem taking a loan if we know how to solve it and don't add new problems.

The process of taking a loan to invest in Bitcoin is not a good idea unless you are planning for short term investment which will not still be possible unless there is another source of income that generates income for you but with the DCA strategy there is no need optioning for a loan, and it will still enable you to accumulate more Bitcoin weekly or monthly with the money that comes from your other income source and it will also help to keep reserve fund, emergency funds and float fund which will help you in hodling your Bitcoin investment for long term 4-10 years and above.

Its never really a good idea but its a dumb decision to take by an individual since you are not participating on a activities that can give you a sure profit and imagine what will happen to you once everything you do fails. For sure you are digging a hole that make your life became more miserable with that.

We should think about more wiser regarding on our finances especially on our investment made and never think about borrowing when in comes on investment but instead come with clean funds which you own so that there's no pressure will come afterwards and we will be fine if something bad happen on the amount we put up on some investment choices we made.

Aside from setting up our emergency funds this debt management is also important to consider and  take seriously by people since for having all this discipline for sure they can live a comfortable life and have good flow of their investment made especially with bitcoin.