Topic: Is taking a loan/debt addicted ? - page 21. (Read 3064 times)
I have witnessed a lot of people taking loans to banks. they use the money from the loan to increase their business capital so that they become more advanced. and their business has been running for a long time and seems to be doing well. But they said they were tempted to further scale up their business. well initially their business looks to be better. But after a few months I heard that they were having trouble paying loan installments to the bank. so they are forced to reduce their business capital and take the money to pay installments at the bank. but other problems arose in the following months. and now their business is even going bankrupt. it's as if their business, which was originally fine, has decreased after having a loan from the bank. and they even take other loans from loan services in online applications. because they want to keep their business going. and it seems many have experienced similar cases. i don't know the problem. But I think it's about poor financial management. and I hope we can avoid the temptation of borrowing in any form.
Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
It's and I have experienced it first hand, I had a friend who was a serial loan taker, he takes a loan just to pay another loan and this circle continues and now he's in a debt that he can't even clear in years to come and that's exactly why I avoid borrowing this kind of people money instead I just give them whatever that I'll be comfortable if they can't pay back. It's circumstances that make people take loan but there are people's that are now addicted to it that it becomes a habit.
Noteits better to always consider what the money collected is used for because if its for pleasure, you obviously can't pay back
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
In this case we must first read the situation and what this debt is really for, if in business sometimes we need funds to increase our business capital and on average entrepreneurs take this, and of course business is not always smooth there must be ups and downs in income, so that when income decreases and cannot pay monthly bills in my experience it can be discussed with the bank because this concerns the smooth running of the business and cooperation.But in the context of consumer loans, banks usually have no tolerance and even if you take a loan from another bank, I don't think it's easy because your loan data will be available at the financial services authority and all banks use it to review your profile or history in finance. .
Digging a hole to close a hole is not a good thing, in fact it will make your finances worse and a lot of problems.
Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
It's and I have experienced it first hand, I had a friend who was a serial loan taker, he takes a loan just to pay another loan and this circle continues and now he's in a debt that he can't even clear in years to come and that's exactly why I avoid borrowing this kind of people money instead I just give them whatever that I'll be comfortable if they can't pay back. It's circumstances that make people take loan but there are people's that are now addicted to it that it becomes a habit.
It doesn't really matter how much they earn as they're always running out of cash due to poor money management and then go asking even those who aren't earning as much as them for loans. I won't recommend anybody taking loans if it isn't that necessary. Avoid it at all costs it's never a healthy life decision. Always try to manage any little cash you have and prioritize the important things in your life and neglect the wants.
It can be addicted only if you think of taking than paying because some people always think of themselves than the people they're owing and they say "is a small money, I'll pay later" that's how you impose yourself in deep problem without you knowing. Is better to live a free life than seeing yourself running from your fellow human being cause of taking loan that you would have cleared off all in the name of greed. At some point you sit down and say money is the root of evil, that's something I don't really buy in this case.
Before you could borrow money from the bank, you would have to present some form of collateral that has to be of some great value so if you at any time default on your payment to it, the bank would use your collateral to service the debt.
I would advise against taking out loans. And if someone already has, then it’s wise to get another or several sources of income and work your ass off to pay off those loans. Cause the bank doesn’t take no for an answer. Neither does the loan shark. Especially the loan shark.
I would advise against taking out loans. And if someone already has, then it’s wise to get another or several sources of income and work your ass off to pay off those loans. Cause the bank doesn’t take no for an answer. Neither does the loan shark. Especially the loan shark.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
I guess its all I'll be talking about today because, I just saw a thread that focused on loan just a while ago although, it came with another context that centered on having to invest with loaned money.It's okay to take loans, besides that's what the facility was provided for, to help you archive that which money serves as a limitation but, you ought to pay it back and with interest if it does come with one.
Well, in my nation, loans have been really popular and we've got lots of loan apps or firms out there and these guys have been cheated of there money many at times. The few that have got it right is the banks. They've got BVN (Biometric Vertication Number) to link accounts and it doesn't matter which bank was used to taking a lone, agree to the terms of deduction and you would get deductions whenever its credited.
For other financial firms, its just different. There terms are sly and people just ride on them all they want.
If you wanna be happy and have peace and be happy stay out of debts. Sometimes it hard bit you but you have to try. Or rather still when you do pay back as soon as you get the cash. Also avoid loan sharks,
they a vicious and would not hesitate to prey on defaulters. I do not think people get addicted to loan cash.
they a vicious and would not hesitate to prey on defaulters. I do not think people get addicted to loan cash.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
It actually happens in real life, not to me but to my friend. However, I understand their sentiments about why they do that because they have no option and many poor people did the same. It is a big mistake to borrow money just to pay for another debt, it becomes continuous, and couldn't get out of it unless you will increase your income. Sometimes we are too blind not to see the other opportunities around us, it is really a need for us to work hard and sacrifice ourselves from buying unnecessary things, instead to prior paying our debts. But if we can't do it, therefore, there is no way we can settle this thing forever. Each of us does have their own struggles in life specially when you are an average wage earner where unexpected things do happen or emergencies which would be the cause for you to borrow
if there are no other choices that you could rely or depend on.Just like the rest been saying that taking a loan isn't bad as long you do obliged yourself on paying up your responsibilities
then you wouldn't find any problems.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
It actually happens in real life, not to me but to my friend. However, I understand their sentiments about why they do that because they have no option and many poor people did the same. It is a big mistake to borrow money just to pay for another debt, it becomes continuous, and couldn't get out of it unless you will increase your income. Sometimes we are too blind not to see the other opportunities around us, it is really a need for us to work hard and sacrifice ourselves from buying unnecessary things, instead to prior paying our debts. But if we can't do it, therefore, there is no way we can settle this thing forever. 
Of course, the best way to maintain your normal well-being and get a good night's sleep is to not use credit at all. It is better to deprive yourself of something than, as you say, fall into a debt trap. But today there are a lot of banks offering their services, and people are tempted to want to get money faster, sometimes not thinking if everything is in order with how they will return it. Having a stable income also does not guarantee that everything will go as we would like. But life on credit is a part of our lives, and either you sleep peacefully without debts and know how to relax, or you are constantly under the yoke of debt, which, if it is impossible to pay on time, kills your health every day. Everyone has a choice.
Sometimes most people don't take on debt because they want to use it for luxury or for something that can wait, but sometimes they do because that's the only option left for them. Let's say I'm out of money and the only way I can earn money is through my signature, which I'm wearing, and if I don't finish my post for the week, I won't get paid, and in the meantime, my gadget develops a fault that requires a small sum of money to repair, which I don't have at the time been but I have hope of funds if the gadget is with me, the option which will be left for me is to either the repairer to repair the gadget for me on credit and give an exact date of payment or i take a loan and fix my gadget when i get paid from my work i repay the loan. In cases like this to me it's worth borrowing for.
them on time because you are really that obliged on doing so.If you cant then you would be facing up some penalties and charges which is really that normal for those lending firm or individuals who do let you borrow.When you dont have extra money or funds or already had been exhausted then you wont really be having no options.
Its not bad to take some loan or debt as long you would be making yourself that responsible on paying it back.
Of course, the best way to maintain your normal well-being and get a good night's sleep is to not use credit at all. It is better to deprive yourself of something than, as you say, fall into a debt trap. But today there are a lot of banks offering their services, and people are tempted to want to get money faster, sometimes not thinking if everything is in order with how they will return it. Having a stable income also does not guarantee that everything will go as we would like. But life on credit is a part of our lives, and either you sleep peacefully without debts and know how to relax, or you are constantly under the yoke of debt, which, if it is impossible to pay on time, kills your health every day. Everyone has a choice.
Sometimes most people don't take on debt because they want to use it for luxury or for something that can wait, but sometimes they do because that's the only option left for them. Let's say I'm out of money and the only way I can earn money is through my signature, which I'm wearing, and if I don't finish my post for the week, I won't get paid, and in the meantime, my gadget develops a fault that requires a small sum of money to repair, which I don't have at the time been but I have hope of funds if the gadget is with me, the option which will be left for me is to either the repairer to repair the gadget for me on credit and give an exact date of payment or i take a loan and fix my gadget when i get paid from my work i repay the loan. In cases like this to me it's worth borrowing for.
Loans are only good when you want to use it to boost a business that is failing,it is not good to take a loan from the bank or any loan company if you don't have a means of paying back. Loans app are like slow death as they will keep on messing with your reputation by letting your friends and family know that you are owning their platform.
When the time for the pay back expires,and you couldn't meet up,an additional interest will be added due to delay and before you know it,the loan that you collected interest will keep on piling up. In my county if you are collecting a big amount of loan,there must be a collateral which an agreement will be signed between both parties involved,so that when you can't meet up to paying back at a certain period of time,the property becomes theirs. I hate having it in mind that am to payback a loan,it gives me sleepless nights.
Taking loans is not addiction because a time will come when you will be hunt by the bank or loan companies for your arrest.
When the time for the pay back expires,and you couldn't meet up,an additional interest will be added due to delay and before you know it,the loan that you collected interest will keep on piling up. In my county if you are collecting a big amount of loan,there must be a collateral which an agreement will be signed between both parties involved,so that when you can't meet up to paying back at a certain period of time,the property becomes theirs. I hate having it in mind that am to payback a loan,it gives me sleepless nights.
Taking loans is not addiction because a time will come when you will be hunt by the bank or loan companies for your arrest.
I don't think it's addicting but more of sort of getting used to borrowing whenever you have tried getting one. Once you did it once, you will always have the reasoning that I can just take money in advance, I will have money to pay it anyway before the due date. That is fine if you are responsible enough to pay all your debts on time, but what happens if you do not? That becomes a problem. Usually, those who end up getting huge amounts of debt are the ones who cannot control their finances responsibly.
As long as you keep your spending in check, you're fine to go ahead and take a loan IMO.
As long as you keep your spending in check, you're fine to go ahead and take a loan IMO.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
Taking a loan just to pay up another loan? You are just making yourself get drowned by interest and there's no way on getting into that cycle.If you dont have any other choice and it would really be that important for you to take up some loan then deal with those interest but as much as possible or as you could then you should really be avoiding on doing so.Better to live up on something that you wont really be involving for some loans because if you dont able to get out with that cycle then you are just been milked out by those lenders but there are indeed situations on which it cant really be avoided
for you to step into this area which you do need to borrow money when you are short out of funds.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
it might be justifying to borrow money to invest on a business or because of emergencies. But borrowing to meet a need or want is not adviceable. One can borrow to start or expend a business and the profit can be used to finance or repay the loan. Also, there are times when their are unforeseen occurrences such as sickness, accident or other losses, one can decide to take loan to meets these vital needs.
But when one borrow to buy food, clothing, car, or other accessories that are used mainly for pleasure, their are chances that it might be difficult to pay. Borrowing is not a good lifestyle because it can lead to other issues such as gambling, corruption and health issues.
The best way to deal with borrowing is to spend below your means and look for alternative sources of income if your pay is not sufficient or meeting your needs.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
This is likely called like using another loan to cover for the old loan and some people live their life like that and it is nothing wrong for them that way. This is certainly a problem for some people though because they can not stand the feeling of not being able to repay their loan. One challenging thing about loan is that the collateral is at risk of forfeiture when you are not able to repay and this is why people do another loan to cover the old one.
I used to borrow from a bank to serve my business, and when the business failed, I fell into a difficult situation, it can be said that I fell into a vicious circle as you said. As I have experienced, I can say that there is no solution to this problem other than you have to save as much as possible, and work harder than usual to have enough money to pay on time. Otherwise, your debt will grow larger as you try to borrow from other places to cover it.
I think it's always possible to start a business using our own money and this business doesn't have to be big at first because it's only getting started yet. It's possible to lose this business but at least the burden that we feel is not heavy as if we have outstanding loans to pay. There is a solution to any problem including this one and you already gave a few of it.Some people think the solution for this problem is to take another loan which is wrong because we can only fall on that said cycle and it will now be hard for us to get out of it. Other than that, taking a loan is truly addictive. I can prove it because my neighbours have been doing it for a long time now.
I too don't like to loan money and never did any business with borrowed money... till last year. Last year, something happened and it changed my view on this subject completely. I realized that I can borrow money with very low interest rates in my country and the inflation rate is way above the borrow rates. So what did I do? I took every loan I could think of and bought every real asset that is producing income. The government is basically giving me free money. Why shouldn't I take it? The assets I bought create a streaming cash flow and paying my debt. In the end when I pay all my debt, I will the owner of them assets and have no debt. It is a nobrainer.
Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
This has been happening to my neighbor. They will loan so they can put up a small business but they couldn't manage it wisely so they end up in bankruptcy while still having their debt unpaid so what they will do is find other loaning companies to borrow funds again to put up another business and to pay their previous loan and things will just happen repeatedly. As a result, they are now in a deep dept all over our community and since they can't pay everything, they are hiding from their debt collectors. This is ridiculous because they can't live in peace. As much as possible, we should not borrow money if not needed and if we don't have enough resources to pay for it. We should also don't live a lifestyle that we can't handle wisely.
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