Does easy credit make people richer or poorer?

[tabas]

I think microcredit does not always push people to danger. For example, if you have some money but that money is not enough for your business, you need a microcredit and you are able to set up your business properly by taking a microcredit and your business is doing well, then at that time this microcredit will be a blessing for you. But if someone takes a loan without understanding the extent of the loan and spends that money without planning, then the loan will be like a curse for him.

That is the purpose of microcredit. It can help us at times that we need it the most. Because not everyone has the enough money for our needs. For business, for renovation, education or any other important things that we need to attend and spend our money in it. There's the good and bad debt, and these things that we mentioned are considered as good debt. With the bad debt, taking a microcredit for gadgets and other possessions or partying or other non important stuff, that's not a good use of it and you're going to pay for its interest too.

[eightdots]

I think microcredit does not always push people to danger. For example, if you have some money but that money is not enough for your business, you need a microcredit and you are able to set up your business properly by taking a microcredit and your business is doing well, then at that time this microcredit will be a blessing for you. But if someone takes a loan without understanding the extent of the loan and spends that money without planning, then the loan will be like a curse for him.

That is the purpose of microcredit. It can help us at times that we need it the most. Because not everyone has the enough money for our needs. For business, for renovation, education or any other important things that we need to attend and spend our money in it. There's the good and bad debt, and these things that we mentioned are considered as good debt. With the bad debt, taking a microcredit for gadgets and other possessions or partying or other non important stuff, that's not a good use of it and you're going to pay for its interest too.

It's important to manage your money wisely, and you may not have enough savings to undertake certain ventures. If your savings aren't sufficient, taking out a loan that won't strain your finances is normal, but you need to be careful because loan repayments aren't always easy. If the loan amount is manageable but sufficient for your business, then it's acceptable and normal to use it to fund your work.

Unnecessary spending leads to unnecessary debt, so it's important to avoid such spending. Before taking out a loan, stretching your resources and saving enough money to fund your business is one of the best things you can do.

[tabas]

That is the purpose of microcredit. It can help us at times that we need it the most. Because not everyone has the enough money for our needs. For business, for renovation, education or any other important things that we need to attend and spend our money in it. There's the good and bad debt, and these things that we mentioned are considered as good debt. With the bad debt, taking a microcredit for gadgets and other possessions or partying or other non important stuff, that's not a good use of it and you're going to pay for its interest too.

It's important to manage your money wisely, and you may not have enough savings to undertake certain ventures. If your savings aren't sufficient, taking out a loan that won't strain your finances is normal, but you need to be careful because loan repayments aren't always easy. If the loan amount is manageable but sufficient for your business, then it's acceptable and normal to use it to fund your work.

Unnecessary spending leads to unnecessary debt, so it's important to avoid such spending. Before taking out a loan, stretching your resources and saving enough money to fund your business is one of the best things you can do.

We can foresee how it looks like when we start paying the loan and interest. Because if some other life events happen and we're required to spend money in it. The loan repayment and its interest might take some heaviness on the person's finances if they didn't prepare for it. that's why take microcredit or loans in your capacity and don't max it out because you might have overlook the impact of it financially when you're already in the monthly payments. But no problem if it can be done and the borrower is a very responsible guy.

[puloweh555]

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 ease of accessing loans doesn't automatically make people rich. On the contrary, many experiences we've seen in various countries show that most people who take out consumer credit to buy luxury items, go on vacations or even gamble actually end up trapped in debt that makes their finances more burdensome in the future. 

Lenders are indeed selective, but that selectiveness doesn't guarantee that borrowers will use the money wisely or responsibly, because responsibility ultimately lies with the individual. Loans can help us build wealth if they're allocated to things that generate more than their interest cost. The bottom line is without discipline and financial literacy easy credit can actually make you poorer. So, basically it's not about whether borrowing is easy or hard but about the purpose and how the money is used.

[Shinpako09]

It depends if you are using it for better purposes, but if you are just using it for your cravings and wants instead of needs, then you will become poorer especially if you easily get tempted when you see you have a high credit limit. Just like those people in our community, they take loans but just spend the money like it is their salary. The worst is, they are taking out loans from every creditor but most of the funds are just used for their wants or habits.

[Versatile_choice]

It depends if you are using it for better purposes, but if you are just using it for your cravings and wants instead of needs, then you will become poorer especially if you easily get tempted when you see you have a high credit limit. Just like those people in our community, they take loans but just spend the money like it is their salary. The worst is, they are taking out loans from every creditor but most of the funds are just used for their wants or habits.

You have made a very good point here, yes many people says that taking loan is not good but they seem to have forgotten that loan money can be use to started up a business. Although somehow I don't blame them for saying that because if the number of debtors is 100 for example; about 70% didn't have something reasonable that they used the loan money to do. It  is just like you said about cravings, of course some people take out loan's just to derive pleasure and after that paying back the loan becomes difficult for them because it's always as if they are giving out money for free.

[Makus]

Easy access to loans could actually be a reason why people end up getting bankrupt and the reason for that is because they borrow from different places and when these loans aren't paid on time they end up accumulating which leads to more debts. Taking a loan especially when the interest increases makes a lot of people unable to pay up and in most cases they end up using all their wages to pay loans that has no end.

[bhadz]

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.

I've got relatives that have a different perspective with the loans given to them when they're asked to get one. They think of it as an extra money and they're going to spend it recklessly on things like new iphone, new gadgets and other things that they don't need. So saying that they're not wise with how they are spending their borrowed money, when told to them straightly they have a justification on it that it is them that's going to pay which is true. But for the purpose of increasing credit score and limit, I think that's an okay purpose if that's the way they see it.

[batang_bitcoin]

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.

While it depends on how the person make use of the loan, still the fact that it comes with growing interest plus the monthly amortization, easy credit makes more people poorer than richer. The only one that is getting richer there is the bank or the lender itself, while the one who takes the loan will continue to carry the burden of paying high interest.

The bottom line, lending is still a business. No one would enter this kind of business if they won't make big profits in the long run.

It is a business and both lenders and borrowers have the responsibility to provide each other the benefits that they can have with. But when the borrower doesn't have a clear plan of why they have taken a loan, they're out of their minds. I've seen this a lot when they have been granted to borrow a lot offered by the banks due to having good cash flow in their savings accounts, they think it's an opportunity for them to take. If I am in need, I'll use and take that but if there's no usage for it then they better move on and just continue with their lives nothing to think about any debts.

[Crypto_Timothy]

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?

It all depends on what you are using the credit to do, obviously if you are not using it to make money for yourself, you won't be able to pay back or level up your credit for future borrowing, so yea it truly depends on what you use it to do.
But in the grand scheme of things credits and loans are meant to aid you, unless you're in an emergency and need urgent cash, I think the only suitable situation for you to use a credit is when you have a business idea or rather I would even advise you take the loan after the business has been successful and you want to scale. It is alot easier to even get higher loan at that point because you have a track record of successful business running.

[Sanitough]

It depends if you are using it for better purposes, but if you are just using it for your cravings and wants instead of needs, then you will become poorer especially if you easily get tempted when you see you have a high credit limit. Just like those people in our community, they take loans but just spend the money like it is their salary. The worst is, they are taking out loans from every creditor but most of the funds are just used for their wants or habits.

Exactly. Having an easy credit is already an advantage for us especially if we use it to leverage getting rich like developing our own skills and potentials, scale our business or fund potential assets. But if we use it just to sustain our luxuries in life, and spend like there's no limits, we will only end up maximizing our credit limits and becomes penniless and homeless in the long run.

Taking loan nowadays is irresistible, but we should learn how to use it for good purposes, not just to satisfy our own wants and luxuries in life.

[Felicity_Tide]

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 you answered this very question to some extent from what you shared. But, just to add to it, taking a loan does not necessarily mean that someone wll become rich or poor. The aftermath of what was borrowed is actually determined by the person's purpose of taking the loan in the first place. For example, If we consider someone with a growing business, taking a loan does not automatically make the person rich or poor... But the whole purpose of taking that loan eventually reflects in the person's finances.

So, it's very important for those who take loans to have a genuine purpose for doing so, and also have a means of paying back so as not to accumulate too much debt through interest.

[Woodie]

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?

For starters getting access to easy credit doesn't always mean you will be rich, other factors have to fall in place like money discipline and most importantly you need something that will grow this money!!

Btw, you need to consider credit interest rates too because of too high they eat away your profits, the tax man too has to be paid in most countries anyway.. but good cheap credit for a person with a plan..can be something that can put him/her on the path to riches no doubt!

[abhiseshakana]

Conducting business and investing using debt, particularly interest bearing debt, it was never in my plans or options, too risky especially allocated for starting a business or an investment of an experimental nature. I Imagine a small mistake can making our lives fall apart financially and mentally. Based on my experiences do not use debt to mask a weak business model or an poor prepared financial foundation. It is not wise enlarge the business while increasing the risk of financial ruin.

Borrowing money to improve cash flow for business that already sustain has regular order and generate a regular surplus are tolerable, which means we have the ability to pay off debt. This is on the condition that it is temporary in nature, the costs are reasonable and We can gauge our ability to pay.

[freedomgo]

It depends if you are using it for better purposes, but if you are just using it for your cravings and wants instead of needs, then you will become poorer especially if you easily get tempted when you see you have a high credit limit. Just like those people in our community, they take loans but just spend the money like it is their salary. The worst is, they are taking out loans from every creditor but most of the funds are just used for their wants or habits.

The problem is, most of the people do not take a loan when it is only badly needed, but when there are high chances and possibilities that their loan application will be approved because they are making salary, regardless of their personal reasons. They often resort into taking loans when they experience sudden financial crisis, when they could have managed it through better financial management and budgeting. Simply put, they don't want to suffer financially, they just want to be financially free instantly.

[Unknown Op]

Credit is good option; it improves financial condition of the person but it also has risks, especially when people start taking this money as their own personal income. Sometimes even a business that is quite good fails due to unexpected losses which might be due to poor planning or because of changes in the market. The person who gives money expects repayment with a certain additional amount, whether the business succeeds or not. It is responsibility of the person to not only consider how much profit they are going to make with that money but they should also think about how they are going to repay the loan amount if anything goes wrong. When credit creates real value, then it is a good and best option and quite useful but if there is no clear plan, then borrowing can sometimes turn a temporary financial problem into long term debt.

[Dave1]

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.

Yes, I think that should be the first thing if you are going to take a loan, look at the conditions and the interest rates and then see if you can pay it depending on my many months you are going to take it. From my experienced, I will only take loans and get it in 24 months. So meaning I have to work very hard in the next two years and hope that I can pay it.

And it depends on what will I do with that money. If it is for emergency then for sure there is no recovering from it. But if you are a entrepreneur, then there is a good chance that you can pay it and then start your own business.

[Nothingtodo]

If you take a loan and you are unable to repay it, then this loan will make you poor.
If you take a loan and you have a source of income to repay the loan, then you will not be poor. However, what you use the loan for is also important. If you take a loan for a small business or you spend it on capital growth in some other business, then you have created a source of income and you will be able to repay it gradually. But if you do not have any source to repay the loan, but you have spent the loan money unnecessarily and this loan will force you to do it for longer, as you will gradually become poor.

[STT]

Ive read many times complaints about lack of credit, lack of access to dollars is literally restricting a nations economy and choking growth.   People have the business opportunity and ability to progress but lacking investment via credit is a very common complaint about the unfairness of the modern world, the distortion of capitalism in the modern era.
   Without a doubt this iteration of Bretton woods Global reserve system heavily favors the west and developed nations closest to the Dollar economy, those furthest suffer from their distance rather than a strictly capitalist or business led success story.

[Balrajsahnidc]

There are two sides to this—a positive one and a negative one. Taking out a loan does not guarantee that you will become wealthy. However, if you possess strong skills, the availability of credit can help you build a business or manage one effectively. You must have a well-thought-out plan for how to allocate funds across various areas of your business. Furthermore, you need a structured approach to repaying loan installments with minimal additional costs. One can be benifited to take loan.
 Taking a loan is not a bad possession. Consider it this way: if you borrow 1 million taka today and repay it over eight years—with the total amount repaid perhaps reaching 1.5 million taka—the actual value of that capital after eight years could potentially be 2 million taka. Investing loan funds can be a right decision; therefore, taking a loan for business purposes is a logical step.
Conversely, if you spend these funds on unnecessary areas—and lack any new source of income—your financial situation will only deteriorate.