Topic: Is taking a loan/debt addicted ? - page 8. (Read 3064 times)
Start by taking a hard look at your finances and creating a budget. This will help you understand your income, expenses, and where your money is going. Once you have a clear picture of your finances, you can start to identify areas where you can cut back on spending and redirect that money towards paying off your debt.
I think the factor that makes people too easily in debt is a luxurious lifestyle, many people compete to show off their luxury on social media so that many people want to follow them, unfortunately most people do not have the ability to buy in cash so they rely on debt, and also nowadays it is increasingly easy to owe in the online application.
too concerned with a style will indeed make someone dare to do anything to still be able to fulfill his desires. because such a person always wants to be praised by others. and indeed not a few of them turn out to be on social media always showing off luxury goods but it turns out that these items are obtained from credit results. even though the main thing we should avoid in managing finances is spending money on things we really don't need. and only buy what we can afford to buy. don't push yourself by taking out a loan. because if it has become a habit, not a few people will go bankrupt because they cannot pay off their debts. 
After taking the loans for pleasure and lifestyle hope they have the means of paying them back because we cannot forget that part of it and with interest too. If someone is going to take a loan for investment knowing fully well that it will pay itself back or there is a source of paying it back before ripping the earnings from the loan later is ok but just taking a loan for pleasure, I don't see a sense in that.
Everything can have sense. If they have a good job with a good income, if they have some good investments which are not good to sell at the moment and they want to take a loan for leisure at the moment then why not? If they can afford that I think it is their business how they deal with their finance.
So finding a sense in a purpose of a loan is not a problem, the problem is when a loan is taken without understanding of how to pay the debt. And the reason of such a reckless loan is not always so important. Of course if you need to save life or health it can be a good reason, but in most other cases we should think about paying the debt before taking a loan.
-snip- 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.
Take a loan from other channels to cover other loan is not effective solution. Before taking a loan, you have to do a calculation between your income, assets and debt that you will take. Don't let your debt exceed the installments you can pay each month or even exceed your income. In addition, you have to think prospectively, that when you take on debt, you have a plan with that money to increase your income. for example, creating a small business to increase your side income. at least it will be enough to cover the interest or more 
a businessman who takes speculation with careful calculations, of course takes a loan in a safe way, I know this from where I work, where leaders take a maximum loan of only 25% of their assets, so that if something bad happens, financially he stays strong. instead of taking a loan because of a lack of capital, but this is more to maintain a relationship with the bank, until finally trusted by the bank because it has a good track record, because he is committed to carrying out new projects does not want to use personal money to run it
Smart businessman know how much percentage loan taking and invested on their business depend with their assets having, I think very smart when getting 25% loan from their assets and they know when getting risk or out predicting ability repaying based on assets they have. But contrast difference with trader or investor getting loan without have any assets yet and some of them brave getting 100% loan and use all for investing in Bitcoin. Not smart ideas when Bitcoin drop and should holding until unpredictable time how possibility repaying loan and interested every month due not any income having, there are not any assets ability for selling except have to cut loss and actually many people don't realize when taking loan how much percentage possibility depending assets having.
There is no harm in taking loan but returning it timely and being thankful to the lender is not possible for everyone. People forget after taking loans. I have even seen people who would threat when they ask for their own loans
a businessman who takes speculation with careful calculations, of course takes a loan in a safe way, I know this from where I work, where leaders take a maximum loan of only 25% of their assets, so that if something bad happens, financially he stays strong. instead of taking a loan because of a lack of capital, but this is more to maintain a relationship with the bank, until finally trusted by the bank because it has a good track record, because he is committed to carrying out new projects does not want to use personal money to run it
Smart businessman know how much percentage loan taking and invested on their business depend with their assets having, I think very smart when getting 25% loan from their assets and they know when getting risk or out predicting ability repaying based on assets they have. But contrast difference with trader or investor getting loan without have any assets yet and some of them brave getting 100% loan and use all for investing in Bitcoin. Not smart ideas when Bitcoin drop and should holding until unpredictable time how possibility repaying loan and interested every month due not any income having, there are not any assets ability for selling except have to cut loss and actually many people don't realize when taking loan how much percentage possibility depending assets having.
If someone has experienced the ease of taking a loan then he will continue to take a loan for pleasure and lifestyle, nowadays people take loans not for needs or important things but mostly for fun and lifestyle, this is because social media makes everything possible. chaotic.
After taking the loans for pleasure and lifestyle hope they have the means of paying them back because we cannot forget that part of it and with interest too. If someone is going to take a loan for investment knowing fully well that it will pay itself back or there is a source of paying it back before ripping the earnings from the loan later is ok but just taking a loan for pleasure, I don't see a sense in that. 
You are right that borrowing money to pay off debt can create a vicious cycle that can be difficult to break. It's important to have a plan in place to manage your debt and make payments on time to avoid accumulating more debt and interest.it's important to be proactive and take steps to manage your debt, rather than letting it spiral out of control. With patience, determination, and a solid plan, you can work your way out of debt and regain control of your finances.
I think the factor that makes people too easily in debt is a luxurious lifestyle, many people compete to show off their luxury on social media so that many people want to follow them, unfortunately most people do not have the ability to buy in cash so they rely on debt, and also nowadays it is increasingly easy to owe in the online application.
That is really the problem with some people, as they always want to get famous, they always want to flex and show off, even if they are in debt. There is nothing wrong with flexing your expensive things, but if that puts you in debt, then it is useless because it means that you can't afford them. Though we all have our own opinions about it, others will say it's okay to be in debt as long as they can pay it off on a monthly basis, and others, like me, don't want to be in debt.
I think the factor that makes people too easily in debt is a luxurious lifestyle, many people compete to show off their luxury on social media so that many people want to follow them, unfortunately most people do not have the ability to buy in cash so they rely on debt, and also nowadays it is increasingly easy to owe in the online application.
It's essential to have a clear plan in place for paying off the debt and to stick to that plan as closely as possible. However, unexpected events can arise that make it difficult to keep up with payments. In those cases, it's crucial to communicate with the lender and explore all available options for managing the debt, such as a payment plan or loan modification. It's also essential to avoid borrowing from other channels to pay off the debt, as this can lead to a vicious cycle of borrowing and accumulating even more debt.
If someone has experienced the ease of taking a loan then he will continue to take a loan for pleasure and lifestyle, nowadays people take loans not for needs or important things but mostly for fun and lifestyle, this is because social media makes everything possible. chaotic.
Only short-sighted people take loans for fun or to satisfy their lifestyle. Because it is very unwise to make a loan, unless the loan is used for doing business or it could be that such a person has a monthly salary where he works so he dares to take a loan to buy luxury goods which he then pays off in accordance with applicable regulations. So it's not always bad, although it would be very wrong if someone who dared to take out a loan didn't have a steady job himself.I go with those wise people who use loans as a source to support their business,
not exactly use loan to start up but to use this capability to add some fund to support the business and to explore for more,
people who are good in controlling their finances which can generate them good success.
But, to those who uses this privilege just to satisfy their lust in buying luxurious things or use loans for personal expense,
most of the time they are the one who got problematic when they can't no longer balance their finances as they will keep
trying to add more loans to cover the previous debts.
If someone has experienced the ease of taking a loan then he will continue to take a loan for pleasure and lifestyle, nowadays people take loans not for needs or important things but mostly for fun and lifestyle, this is because social media makes everything possible. chaotic.
Only short-sighted people take loans for fun or to satisfy their lifestyle. Because it is very unwise to make a loan, unless the loan is used for doing business or it could be that such a person has a monthly salary where he works so he dares to take a loan to buy luxury goods which he then pays off in accordance with applicable regulations. So it's not always bad, although it would be very wrong if someone who dared to take out a loan didn't have a steady job himself. 
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.
Well you should take a loan and pay it back on time or early.
Loans and taking the proper amount of them is fine.
I had a 30 year mortgage in 1992 I paid it by 1999.
I have borrowed over 200,000 on credit cards since 1986 I have paid a total of 25 -50 in interest and earned over 4,000 in bonus points.
So that is proper management of loans. Are they addicting for me no.
Do I lose money doing this no.
I have well manage good credit
see image below.
I could get that card and have 12 months to pay it back no interest.
At the moment I am not buying gear so I won't use this offer.
I have been doing these offers since I started my ebay business in 2003.
If someone has experienced the ease of taking a loan then he will continue to take a loan for pleasure and lifestyle, nowadays people take loans not for needs or important things but mostly for fun and lifestyle, this is because social media makes everything possible. chaotic.
As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.
Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.
To back up your loan, aside from the possible earnings from the business that you'll going to put up, you also need to have other sources of income that will help you to pay your loan.
If you'll going to take everything out from the new business that you just started, the chance that it won't
survive for long, unless the business is really good and really producing a decent amount of earnings.
I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.
Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.
"Now, loans might help you realize your dreams..." I agree with you in general but putting self-confidence in loans will lead to disaster. You have clarified that it is better not to borrow from family or friends, with which I totally agree. But "smart loans" ? I don't really think so. All loans are designed to make profit out of borrowers and there is no exception. The only part that may be called "smart" are small group of people who can take advantage of loans such as banking managers. For average people like us, there is no way we can outperform the whole debt system. I would never be confident in handling finances. Just live within my means.
As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.
Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.
To back up your loan, aside from the possible earnings from the business that you'll going to put up, you also need to have other sources of income that will help you to pay your loan.
If you'll going to take everything out from the new business that you just started, the chance that it won't
survive for long, unless the business is really good and really producing a decent amount of earnings.
I tried loaning once but only a small amount which I use for important matters or emergencies. Taking a loan/debt is not addicted and if you don't want to have a problem with your loan then better loan an amount that you can pay once after you receive your salary or whatever you get money from. I only choose a company or platform where the repayment is monthly. In that way, I paid it in advance for two or three months so that within that time I can save money and later on pay it full. It's much better if there's no loan to be paid.
Perhaps you are right, if the situation obliges you to take a loan, then perhaps it is better to turn to the closest people, for example, to your parents, they will never refuse. I would not advise friends to ask such a question, because situations are different, if something changes, and you cannot repay the loan on time, this may affect your attitude.
and it will have a seriously disasterous affect on you if you take it from the bank. But some people are very good in scamming the people and they would love to take money from the other people whatsoever is the case.
As for me, I don't see anything wrong with borrowing money from someone if you have real problems and a reliable income source to pay it back. But the biggest issue arises when you take out a bank loan and you don't have a reliable source of income. In fact, no bank or other financial institution will lend you money if they know you won't have a reliable way to repay it. Just keep in mind that many businessmen do borrow money to expand their enterprises when they are struggling. Therefore, I don't see anything wrong with taking out a loan to address major issues.
Those who have a reliable source of income rarely take out a loan, otherwise this means that their source of income has become not so reliable if it is not enough to ensure the operation of the enterprise, and in addition, the business must generate income. And just this income should form the capital of the enterprise, which will be used for business development. Sometimes they can take out a loan to start a new business, this is also acceptable, if there is a good analysis of the market and a competent business plan.
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