Does easy credit make people richer or poorer?

[UpTober]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

I think these things depend on the person taking the loan. If a person collects a loan to start a small business and if he gradually turns his small system into a big business through his strategy, then he will easily be able to repay his loan with a part of his profit, but if that person takes a loan unplanned and takes more loans beyond his means, if he cannot properly use the money from that loan for business purposes, then his business will suffer, as a result of which he will not be able to repay the loan on the one hand, and his financial condition will be worse than before.

Different banks or lending institutions give loans on different conditions or at high interest rates, I think those who take loans should seriously consider how much interest they have to pay from where they are taking the loan or other conditions. If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

[BIT-BENDER]

If you don't have access to a loan and you are poor or have no other way to raise money for a business or a startup you are going to most likely remain poor, the likelihood of you making it is low, now if you are poor and you have access to getting a loan now your chances of getting rich has increased although it depends on the person getting the loan also the business or what the person wants to use the loan for but primarily you have been given a chance to make it something you wouldn't have had if there was no easy access to getting a loan.

[VivaMan]

For me easy credit can't guarantee you to be rich,  although it depends on you as a person, your mindset towards the money, and your plans either for investment or for flexing. Sometimes it can come as a result of you becoming poor and starting all over expecially when you don't invest with it wisely, alot of persons has experience this and it reduced your personality as an individual .
‎Therefore it's advised to avoid dept completely and even if you borrow try to pay back for good credit score.

[I_Anime]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

I think these things depend on the person taking the loan. If a person collects a loan to start a small business and if he gradually turns his small system into a big business through his strategy, then he will easily be able to repay his loan with a part of his profit, but if that person takes a loan unplanned and takes more loans beyond his means, if he cannot properly use the money from that loan for business purposes, then his business will suffer, as a result of which he will not be able to repay the loan on the one hand, and his financial condition will be worse than before.

Different banks or lending institutions give loans on different conditions or at high interest rates, I think those who take loans should seriously consider how much interest they have to pay from where they are taking the loan or other conditions. If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

Is quite simple . It actually boils down to the individual going for that loan . Personally, I believe for an individual going for loan you have to be sure to some extent that what you are collecting that loan for worth it. And if it’s for a business, the individual must make sure that he has done all his research and run some feasibility study and stuff . Before venturing any business using loan . Because you can literally go for loan for a certain business and the business will still end up poorly . L Like going for loan to gamble or to hold (which is one of the worse case ). Is better to be normal broke and trying to work something out than to be broke negatively (debts ).

[Charles-Tim]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

To get a loan this time around is very easy, it makes it easier for gamblers and traders that are losing money to easily borrow money. Also some people will prefer to tell a friend to borrow them money without any interests in the past, but they see everything easy on the loan apps now with interests that they will still pay on top of it which is not a small amount of money. There are more people that are borrowing money unwisely now because they have the easy chance to borrow. Although, some people are still wise about it.

[batang_bitcoin]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

If it's the ratio, there will be more poor than of those who will make it and become successful. The banks are wise, they're not going to lend people that they know who doesn't have capacity to pay their debt. And that's why giving them the ease to loan makes them more motivated but, you will not see the majority of them using it to grow that money for business or investments. You'd see most of them spending it on iphones, vacations, and other extravagant. I am not against it so they can also have fun with that money since they're going to pay for it. But if it's about making them rich, then it's the opposite.

[Fortify]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

I think these things depend on the person taking the loan. If a person collects a loan to start a small business and if he gradually turns his small system into a big business through his strategy, then he will easily be able to repay his loan with a part of his profit, but if that person takes a loan unplanned and takes more loans beyond his means, if he cannot properly use the money from that loan for business purposes, then his business will suffer, as a result of which he will not be able to repay the loan on the one hand, and his financial condition will be worse than before.

Different banks or lending institutions give loans on different conditions or at high interest rates, I think those who take loans should seriously consider how much interest they have to pay from where they are taking the loan or other conditions. If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

When talking about easy credit most people are not talking about business loans, but rather the much more wasteful type. Credit card and loan companies are definitely vultures hoping to trap people into a cycle of debt, it's only education that can protect people from falling into this trap. If you use credit cards wisely you are effectively able to borrow money for around 30 days without incurring any charge, but you must pay it off. Credit card companies are hoping that you don't and accrue a balance which they can charge high interest rates on each month. Many younger people fall into this trap because they don't fully understand the agreement they're entering and just see the available balance as "free money". Loans are a little bit different and the worst are probably in the form of car payments, which might not be as high as card payments but you're also invested in an depreciating asset. All of these forms of credit are reasonable but you need to understand how they work or you might make some rather expensive decisions. The two most important things are: our education system should do more training in the real life application of these things along with the consequences and people also need to learn responsibility before being allowed to take on such a heavy weight of debt.

[Rruchi man]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

Borrowing is one of the most dangerous financial habits to have and become used to because it eats your tomorrow today. The ease of getting loans will encourage reckless financial behaviors because people know that if they require money for an emergency situation, there is a possibility for them to get access to it, so they are more reckless with what they have at hand. If you always borrow, you will never be able to accumulate wealth unless it is a good debt that you are incurring; that is the sort of debt you get into for a well-calculated reason that profits you.

To add, I will gladly refer people who have shown that they are not to be trusted when I lend them money to pay back as promised to loan apps rather than risk lending them money again.

[leonair]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

The easy availability of loans makes people take loans without need. They spend the money on loans unnecessarily and later have to repay the money with some interest. Those who are used to taking one-time loans are always in loans. And they repay the loans with their hard-earned money with high interest. Again, along with cash loans, credit card users are increasing worldwide and in this case, the amount of money spent by those who are using credit cards is increasing, the interest in buying extravagant products is increasing and these things are not allowing them to get out of debt. Easy availability of loans and use of credit cards are not making people rich but are always leaving them in a debt. And not allowing them to become economically strong.

[ColdLava40]

If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

The loan isn't what kills, it's the interest rates you have to pay back.

We know how easy it is to take loan but paying back is usually an issue for many people. If you don't have a good way to repay a loan, why take it in the first place? What's the use of being in dept that you still won't be able to pay.

I've seen many people get ruined because of loans. Some others gets into trouble because they stood as a trustee for another person to take loan and when they couldn't pay back, the bank would hold them instead.

To me, loans should only be taken if you have something like a business idea that you know would bring back profits but lack capitals. Or some asset you wish to purchase and know very well that in the next couple of years, it would appreciate.

[Donk1]

Well technically loans aren't supposed to be used to start up a business; instead, they are used to boost business because even with your strategy there is no guarantee that your business will become successful or not after taking that loan. Perhaps to me doing such is more like a gambler high risk, high rewards. Best to say if that business is what you are going to be using to feed yourself then it had probably be a business worth taking such risks if not, you will only end up making a financial mistake with unseen circumstances. So to me, you should first of all ask yourself if the risk is worth taking. That's all.......

[MorganaX]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

I think these things depend on the person taking the loan. If a person collects a loan to start a small business and if he gradually turns his small system into a big business through his strategy, then he will easily be able to repay his loan with a part of his profit, but if that person takes a loan unplanned and takes more loans beyond his means, if he cannot properly use the money from that loan for business purposes, then his business will suffer, as a result of which he will not be able to repay the loan on the one hand, and his financial condition will be worse than before.

Different banks or lending institutions give loans on different conditions or at high interest rates, I think those who take loans should seriously consider how much interest they have to pay from where they are taking the loan or other conditions. If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

The concept of loans apart from profit was design to ease the business growth by supplementing with cash, and if access to loans in your area is easy, kudos to those with the ambition and qualifications to start a business but the problem starts when some one starts taking out loans for personal reason, that's one reason I don't ever reason with especially for people with fixed salary gap, because interest will accrue until it passes income limit

[Stalker22]

It probably depends on whether you actually have a solid plan for your credit or if you are just going to "gamble" with bank money.

Debt is just leverage.  If you throw a 15% interest loan into a business that only pulls 5% margins... well, you do the math. IMO the main problem is not the banks being predatory, it is how fast people jump on easy credit without running basic numbers first.

[programmer3666]

Easy credit surely makes people poorer! Ordinarily the loan is targeted to already desperate individuals and give them that quick clicks and not too much documentation to get a loan that would normally take them months or weeks to get in a proper process. If loans are hard to get then people will have second thought before making attempts to get it. Someone will take a loan with smile and starts to pay it back with anger because the high interest will chain them down until they get emotionally and financially checked out.

[hmbdofficial]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts. Now the question is, does this ease of borrowing really make people rich or does it lead people to become poorer?

Those loan could be dangerous if the purpose of the loan is to is not identified. If the loan is for business it will probably make one richer because not everyone have the privilege of having capital to start up a business, without such loan poor people might not be able to to establish a profitable business.

Different banks or lending institutions give loans on different conditions or at high interest rates, I think those who take loans should seriously consider how much interest they have to pay from where they are taking the loan or other conditions. If a person knows these things well and can use the money properly after taking the loan, then this loan can change the position of the person otherwise his condition may get worse.

This is the delicate part about loan. Terms and conditions, together with the interest rate is what one need to take a good look at before deciding to take any loan. When the interest on a loan is to high, it becomes very frustrating  for the person involved and disrupts their repayment plan. I really don’t recommend taking loan for businesses your have not tried before unless its necessary.

[Cryptomultiplier]

I never advice anyone without a source of income to take a loan no matter how easy it is because loans are just like ropes that tie one in a spot and the worst is taking out another loan to repay a due loan.

Good collateral may be lost after taking out loans that is not repayed and that's why those who have Bitcoin investment prefer to borrow against their crypto currency assets but I prefer to sell or liquidate to sort such a problem that may have required a loan in its place.

[Ojima-ojo]

If you don't have access to a loan and you are poor or have no other way to raise money for a business or a startup you are going to most likely remain poor, the likelihood of you making it is low, now if you are poor and you have access to getting a loan now your chances of getting rich has increased although it depends on the person getting the loan also the business or what the person wants to use the loan for but primarily you have been given a chance to make it something you wouldn't have had if there was no easy access to getting a loan.

This is the perfect illustration of the goal topics of loans for business funding, a lot of time we see people that take loans for none business reasons and even at that they still don't have the knowledge to calculate a favorable interest on the loans they are subject to the current terms which most time is not favorable to the lender.


But if the loan have a direct channel that it invested into and capable of yielding both interest and profits for the lender such a loan is not a bad loan.

[BTC FutureKing]

Well technically loans aren't supposed to be used to start up a business; instead, they are used to boost business because even with your strategy there is no guarantee that your business will become successful or not after taking that loan. Perhaps to me doing such is more like a gambler high risk, high rewards. Best to say if that business is what you are going to be using to feed yourself then it had probably be a business worth taking such risks if not, you will only end up making a financial mistake with unseen circumstances. So to me, you should first of all ask yourself if the risk is worth taking. That's all.......

It is not wrong to take a loan to start a business nor is it beneficial to take a loan for a running business.Your ability to grow the business the courage to bear business losses the skill to avoid problems, and good planning are included.If your business is profitable, then taking a loan can be a good decision because if you take a loan for a business without experience your luck and effort can boost the business otherwise you will suffer heavy losses.This can happen.You should consult someone and start a business thoughtfully and do a business that is consistently profitable so that you can easily face losses and also have financial stability.

[arallmuus]

Nowadays we can see the ease of borrowing, so a person can easily get a loan for business purposes in various amounts.

Easily? Since when is getting a loan for business are easy? You forgot the most crucial part which is collateral. Banks are not gonna throw their money away to you just because you 'think' you business gonna prosper, the banks will need collateral

Assuming bank approve your loan, your odds are stack with the high interest rate as well as your collateral being at risk so you do the math on this one. Unless the loan could generate atleast 20% ROI annually on the business then most likely you are not gonna survive because most banks could take around 8-15% interets rate annually

[Taricoins]

It probably depends on whether you actually have a solid plan for your credit or if you are just going to "gamble" with bank money.

Debt is just leverage.  If you throw a 15% interest loan into a business that only pulls 5% margins... well, you do the math. IMO the main problem is not the banks being predatory, it is how fast people jump on easy credit without running basic numbers first.

This is just true, fast credit loans have alot of interest inside and its not right, there was this online fast loan I use one time that there Interest rate was close to 30% monthly, it was abridge loan I need because I wasn't liquid enough at that moment, it was painful when I paid back but I still blamed myself for not reading the terms and conditions appropriately. I think that's what you said about the banks not being a predator but people not thoroughly looking at the service.