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Topic: Is taking a loan/debt addicted ? - page 22. (Read 3079 times)

sr. member
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Merit: 264
February 01, 2023, 12:43:34 PM
#36
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Yeah it is a vicious circle and many people are just like falling for it even in basic sense. It is not just loaning in bank actually. It also happens in many individuals that are really desperate to get what they wanted to get and they would do any means to get it and of course, loaning would be one of them.
This is why I do avoid credit cards and debit cards as much as possible.

You know what they say.
Quote
"If you can't buy it twice, you can't afford it".
legendary
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February 01, 2023, 12:35:56 PM
#35
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.

As they say, you can't correct a mistake by committing another mistake. Well, I'm not saying that taking a loan from an online platform or bank is not a wise thing to do, but those funds should only be taken and used for emergencies only or some other important things that needs urgency. But taking a loan just to get your wants even if that's really not important isn't a wise move because those loans got interests entailed with it and in every due you failed to pay will make the interests worse, and hence, why some people will borrow just to pay those loans and end up in debts again.
hero member
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February 01, 2023, 12:17:15 PM
#34
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.
That's what will happen if we take out a loan to start a business, whatever business it is. Maybe it won't be a problem when the business we build is successful and advanced, but on the contrary it will be a very big problem when we fail to build a business or business, because it will leave debts that we have to pay every month. The impact is on our financial condition, because it will drain our wallets to fulfill the obligations of what we have done. So as much as possible avoid it, unless the circumstances require us to do that.
sr. member
Activity: 1960
Merit: 329
February 01, 2023, 12:17:02 PM
#33
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.

Most people who go for loans do not do it because they want to but they have to because of pressing needs upon them. From your comment I perceive that you are still very young. You could be in your 20s and will not know what those in their 30s and 40s with depending relatives and family responsibilities or business go through. Just pray you do not have such situations upon you. Most debtors will gladly pay back but there are some who are quarrelsome once it gets to pay back time. We know that. They are bad debtors.
hero member
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February 01, 2023, 11:42:00 AM
#32
In my country, you wouldn't dare take out a loan and fail to pay it back when it was due, and banks wouldn't harass you by calling you to make payments on the loan. When one of my friends failed to make her loan payments on time after taking out a bank loan, she was called names and had her life threatened

If you don't have the means to make timely payments, you should avoid doing anything like taking out bank loans for your sanity sake
Banks will always have way for debtors to pay them, some uses collateral like their properties and cars. There are also who have co-maker incase someone didn’t able to pay there is someone they can ask to to pay for that debtors. Banks are smart enough to find ways where they will still get interest at the same time assurance that debtors will still be able to pay them if not thru money but thru their properties. That’s why if we must be responsible when we ask for loan as we might lose more in doing it if we didn’t pay on time
hero member
Activity: 1064
Merit: 501
February 01, 2023, 11:29:22 AM
#31
It is a problem on its own if you take up a loan without paying it on time as agreed. Not to talk of taking up another loan just to pay up the previous borrowed loan.

In my country, you wouldn't dare take out a loan and fail to pay it back when it was due, and banks wouldn't harass you by calling you to make payments on the loan. When one of my friends failed to make her loan payments on time after taking out a bank loan, she was called names and had her life threatened

If you don't have the means to make timely payments, you should avoid doing anything like taking out bank loans for your sanity sake
hero member
Activity: 1778
Merit: 907
February 01, 2023, 11:15:08 AM
#30
I've also noticed a trend of taking small, unnecessary loans of a few thousand euros from a few people in my surroundings. The majority of people are easily tricked into thinking that it's fine to pay a relatively small amount of money on a monthly basis and are carried away, not taking into account the accumulating interest or accruing payments. This is also common with credit cards, which are way more convenient and quicker than taking a loan. Credit cards are practically a form of borrowing money since you're basically going into debt in order to purchase something, making it look more affordable to conduct purchases with money you don't actually possess.
legendary
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So anyway, I applied as a merit source :)
February 01, 2023, 10:51:00 AM
#29
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 is a type of an addiction and there are certain people who like to take a loan instead of directly paying from their pocket even when they have enough money on them.

It is a vicious cycle unless that person takes back control in their own hands and clears off all their debts and stop this habit. I personally have seen some people who are always doing this and they dont seem to accept it as a problem - "you should do it too" is what they say when I attempt to snap them out of it.

Then there are those people who gamble with borrowed funds, that is defenitely going to go south. Their correction is through their gambling habit, not the habit of taking a loan.
legendary
Activity: 2072
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February 01, 2023, 09:46:26 AM
#28
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.
legendary
Activity: 2562
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February 01, 2023, 08:24:05 AM
#27
Recently, I learned installment purchasing plans are not included in credit check financial network records. It could be possible to engage in monthly payment plans without it negatively affecting your credit score if you miss a payment. This good be a good method to accumulate debt, in a way which won't affect your APR rate on loans due to credit score devaluation.

It has also been mentioned many times that annual inflation being higher than loan annual interest rates is a good condition for loans. The funds which are loaned can devalue at a faster rate than interest payments. Resulting in less than the borrowed amount being repaid over time. To cite a gross example of this, imagine you take out a 15 year loan for $100,000 to buy a house. If inflation is 9% per year. By the time you repay the loan in 15 years, you may have repaid considerably less than you would under normal economic conditions. Where the principal value of the loan is not devaluing at roughly 9% annually, over a 15 year period.

Cost cutting is another valid method to compliment accumulation of debt. Some recommend going so far as to scour the internet for coupons, sales and deals. 20% or even 5% reductions in the base cost of goods can have a considerable impact over the long term.
legendary
Activity: 2002
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Free Free Palestine
February 01, 2023, 07:59:08 AM
#26
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.
rby
hero member
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Brotherhood is love
February 01, 2023, 07:56:39 AM
#25
If you borrow money from bank or on an online loaning company, you may likely be unable to borrow from any other bank or company again, they have a means they can know that you have a loan you have not paid before, because of that they will not borrow you. The best is to just make sure you pay the money you borrow, not to think of borrowing to pay borrowed money.

If you know you can not pay back the money you want to borrow, do not borrow it.

Apart from them having connected network of knowing people on debt already, I also know that those loan companies or banks has some criteria to know who is eligible to borrow and how much they can borrow.
Someone who is on a lower salary, cannot demand for a loan which their salary cannot cover for a reasonable amount of time.
If you can borrow from rich relatives, it is better than institutions.
hero member
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February 01, 2023, 07:53:28 AM
#24
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 itself is not addicting but low salaries, the easiness, availability and promotions of taking a loan makes it truly addictive. If your income is very low but your financial loan is very high, then you are truly turning yourself into debt storm and significant part of your daily work is done just to cover debt interests.

Many people (at least in the US) live well beyond their means and use credit cards with high interest rates to buy shit like smartphones, TVs, and all sorts of luxury goods--not the types of things you should only buy if you have enough cash to do so.
Why should you buy smartphone, well, iPhone with credit when you live in the USA where there are one of the highest salaries and the price of phone is lower here than in other countries. I don't really understand that attitude. If a person lives in developing countries where a person rarely makes $200 a month that's some hour's salary of American, then it's logical to buy smartphone with credit but otherwise Cheesy At least wait for two months and buy then.



sr. member
Activity: 2268
Merit: 275
February 01, 2023, 07:53:01 AM
#23
Paying off debt by opening a new debt faucet is a bad idea, especially if the loan has interest. If possible, we can negotiate with the party giving the lender to give us leeway and a time limit so we can pay it off instead of taking loans from other lenders. And if we have to borrow again because it is no longer possible to negotiate, then seek loans from our family or those closest to us and make sure we make an agreement with a vulnerable time when we can pay. I mean it's better to borrow from family or someone close to you because interest is usually not charged which will make it more difficult for us later.
hero member
Activity: 2632
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Jack of all trades 💯
February 01, 2023, 07:51:16 AM
#22
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.

Yes it is especially if you don't have anywhere to go like no other income streams to fill those loan up for sure you will go to that option because you think it can save your ass from your existing loans. But this is really a bad behavior considering that you might get more bigger debt because the percentage of loan became more higher.

If your seeking for solution to end this cycle then negotiate to the person who lend you some money and state the percentage you can only afford to them and don't take any loan from other for sure you or your friend can get over with this.
hero member
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February 01, 2023, 07:42:49 AM
#21
It can happen to people in debt because they are used to getting fast money through it. If they could pay back the debt on time, there wouldn't be a problem if he went back into debt. But most people will find it difficult to return the money they borrow, making them lose the items used as collateral.

To deal with this problem, immediately settle your debts and never owe again. That's all you can do to break the vicious cycle so it won't make your life difficult in the future.
hero member
Activity: 2366
Merit: 594
February 01, 2023, 07:32:50 AM
#20
Just a little background I worked in a local government before, and most of the regular employees there are in this situation. They tend to have a loan that is deducted directly from their pay, and they also have another loan from another cooperative, for which they usually borrow money from a friend just to pay their loan. There is no way around this until your loan has been paid; you'll end up digging deeper until all the loans are paid, unless they have extra incomes from their partners or on their own. Also, I have taken a loan before, and I would say it is not addictive, but most of my colleagues will say to take a loan again, as their reason is that you can't buy those things in cash, and it is very boring if you don't have a loan to pay.
legendary
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February 01, 2023, 07:03:50 AM
#19
Taking out loans or incurring debt may definitely have a double-edged effect; although it might help us reach our financial objectives, improper management can cause it to turn into a debt trap. When unable to pay back a loan on time, borrowing money from other sources may provide some respite, but in the long run, it just increases the financial load.

Prioritizing debt repayment and developing a budget plan to efficiently manage spending are smart ways to handle this problem. Planning the loan repayments in accordance with the terms and circumstances of the loan agreement is essential. It's crucial to let the lender know about any troubles you're having paying back the loan; they could offer you some other solutions.

Finding methods to raise income, such as by taking on a part-time work, selling unnecessary possessions, or reducing spending, is an additional option. A financial adviser may provide advice on the best course of action and assist in developing a strategy for repaying debt.

Furthermore, it's critical to take charge and refrain from taking on new debt until the existing obligation is repaid. One might concentrate on creating an emergency reserve for unforeseen costs and strive towards financial security rather than depending on loans.
hero member
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February 01, 2023, 07:00:57 AM
#18
Just don't borrow money from "fast loan" companies. They are way worse than a bank loan.
I'll agree on this one. I've got friends that had applied for a loan, well, the loans were just small amounts but still they're loans. And these companies are truly wild when they were late in payments. I know that they have to be responsible and follow the contract that they've agreed upon that they've signed that they should pay with penalty for late payments.
But those loan companies through mobile apps in my country as I've said, they're wild in a manner that they're giving threat to the people that they've included as their reference just in case they don't pay. Crazy companies and that's another reason one shouldn't borrow from them.
hero member
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February 01, 2023, 06:56:48 AM
#17
Before you decide to take a specific amount of loan, you should definitely have a backup plan that you intend to use to repay the loan before it becomes due, which could be your salary, your payment from your next job, or whatever the case may be. If you are unable to receive the funds needed to repay your loan on time, you should return to the bank or whoever you are dealing with and request an extension.

Taking a loan to pay off an existing one, which I must say is a stupid decision in some cases unless the other party wants a repayment, which is always necessary, is the best decision I will make. If I can't get my hands on family and friends who can help without interest, it is better that way than to get yourself into so much debt tomorrow, which can destabilize one's financial growth.
 
 
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