Topic: Not enough debt (Read 653 times)

Yes, economic progress is the main topic of discussion and consideration. All legitimate means for this economic progress should be exploited. We should always take care that whatever we do is done rationally and analytically. That is we should know everything about what to do. Only then we will understand where it is good to take a loan and when it is not necessary to take a loan and our economic development will be possible.

I must agree to him because his right that it's investments, instead of debt, are what actually power economic boom. The essential thing is how correctly money is applied to gain returns and create cost, not simply accumulating more debts. By leveraging funds from shares and loans, agencies can finance operations and boom beyond what they might attain with their very own capital because of this leverage it allows them to adopt formidable initiatives and enlarge their marketplace presence. To this date, the cycle nowadays includes elevating finances, investing in growth, and then paying off debt with the returns generated instead making more debts. As business prevails, they reinvest profits into further expansion and possibly raise more finances, driving endured boom. Therefore, my whole point agrees to this statement is while debt is an effective tool in facilitating funding, strategic use of these investments drives long-term economic success.

Woahh, brooo, I've never been so shocked at someone's mentality. No offense  , but how can you even think in such a manner? You're basically trying to say, everyone should take loans, whether they need it or not, enslave themselves to the people and companies or countries they took loans from and work their ass out to pay, then go through the cycle again. Wow, that sounds like a very meaningful life well spent   . I bet you live like that for the welfare of your country right? You should keep it up. Acquire as much debt as you want and work 2, probably 4-to 5 jobs to pay them off, and watch your country miraculously develop through your hard work  .

Okay, but jokes aside, you should know that what makes an economy grow isn't DEBT, but INVESTMENTS. it's not all about getting money and enslaving yourself, but what you do with that money. You're not totally wrong though, a lecturer of mine once said that a successful business endeavor is actually one that has 80% other people's money and 20% the founder's. I was so confused for so long as to how that made sense. It took me a while to realize that what he actually meant was that,
successful businessmen use shares and loans to make money for themselves and after a while of course, pay off their debt. And yes, the cycle continues, they would still continue to sell more shares, take more loans, and buy more shares, pay off more debt. 

You see, I kinda get what you're trying to say but you would have actually made more sense if you didn't talk about taking 2 jobs to pay off a debt you didn't need in the first place. If you could run 2 jobs at the same time and you were so hardworking, why did you take out a loan in the first place? For the purpose of Economic growth? Nahhh... That's not how it works brother.

The point is that debt is only good if it is used for positive things, if it is only to show off with debt money I think they are stupid people. I have even seen a businessman who was bankrupt but he managed to rise again because of debt, he used the debt money to make his financial life good again, so I think that can be a positive example so that we don't need to be afraid of debt as long as we can use it for good or benefit in the future.

Considering something that we want to do, of course, this is very important because so that we can know the purpose of doing it because without considering it first, it is possible that what we do is detrimental to ourselves and for someone who is improving their financial condition, of course, it will be better to restrain themselves against the lifestyle they have and they must focus on the business they want to develop so that they can achieve success and can also improve their financial condition, But for some people who choose to use credit cards for their lifestyle, of course that person has to work even harder to be able to pay off the credit card bills they have and I agree with you every person who has good knowledge about debt, of course they will not use debt for their lifestyle and they prefer to use loans for things that can indeed be profitable such as to develop Their business is becoming more developed than before.

Rich people are always easier to use whatever they want as long as they have considered what it is for, but for people who are trying to improve their economy through developing their own business, I also think that using credit cards should still be considered unimportant as long as they can still live a more comfortable life without having to increase their prestige in using anything. Because productive people should be smart people who will not use something without any function for their own work so they will not carelessly use any card if its function itself is not much and has no effect on improving our own economy.

I know very well that productive people are less productive if they are uncomfortable with their lives. That is fine for those who use credit cards. However I see some posh people around me who use credit cards just to boost their self-esteem and have no potential to increase or decrease their productivity. So I think for those who do not have any economic development potential from using credit card there is no need or better not to use credit cards.

Debt has never been a motivator, it is a burden that no one wants to be stuck with, people who borrow just because there is no better solution. Those who say debt is a motivator because they want to be more open, reduce pressure on themselves and try harder every day to pay off debt. No one is stupid enough to get into debt and consider it a motivation in life to get ahead.

Regarding borrowing money for business and investment, we should limit and avoid it if possible, IMO. It's not a bad idea if we don't have a better solution, but it's also never a good idea. As I said, debt is a burden and can be a barrier that causes us to fail on our entrepreneurial journey, and even puts our lives at a standstill if our startup idea fails.

What you need to understand to get your head in the right direction is that there are good debts and bad debts. Good debts are the debts you incure from re-investing or expanding your already profitable business venture in order to get more scalable and enjoy better profit margin. Most coompanies  engage in good debts and it keeps them in profitable operation since they take the loans, get good profits and pay back the loan and have a good from ROI most times without touching the funds in their treasury.

While bad debts are those you get to purchase liabilities and finance daily activities which in turn does not generate any revenue for you and I seriously think your argument falls in this category. These kind of debts cages peoples progress and makes them slaves for a very long time since they make money to service debts and not for their own utilities.

Stay out of bad debts as much as you can to live a free and happy life

Do you know about debt traps? You should see how many countries are in debt traps and how these countries end up in chaos. So what is currently needed is not more debt, but how a leader can manage their country's debt and use it for productive things which can improve the economy of their country and make people more prosperous in their lives. Because no matter how much debt there is, if it is managed by a stupid leader, the result is the same as the country will collapse sooner or later.

Disapprove of this, as it's nothing so true, imo. To be debt free you would have worked extremely hard to attain a debt free life in today's society's where life is biting real hard. And it takes a continual hardworking to maintain a debt free lifestyle or economy. It's just that only a little percent of individuals or countries that are enjoying a debt free economy, however, I so doubt if there's any country of the world that is without any form of debt since the world is now a global village with economical interdependence through foreign policies.

That's the importance of managing our finances, we have to be able to control ourselves in terms of expenses and income, try to earn more income than expenses, that way we don't have to look for loans or borrow money from other people for our needs, therefore we have to try as hard as we can. to earn sufficient income for the needs of ourselves and our families.

The emergence of debt is caused by our own excessive prestige, which gives rise to the thought of being in debt to other people in order to fulfill our own needs, it is better to style according to the contents of our wallet, do not force our will if that is what we can afford, be grateful, don't let us appear rich to other people, even though it's all the result of debt.

You are right. Debts should only arise due to some economic factors beyond our control and should not be seen as a motivating factor to work hard, working so hard just to clear up debts is not in anyway a progress made. People can actually do well without neccessarily going into debts, although it requires some high level of discipline and self control to be able to live within one's means, stick to budgets, save and endure too just to avoid getting into debts.

Debts no doubt can be very useful, but deliberately abusing the privilege can also be very disastrous. People just need to try as much as possible to within their means, invest in viable projects and only seek for borrowed funds when neccessary.

I think you are hitting the wrong concept here. Having debts will never make a person highly motivated to work and prosper, but it will only lessen the enthusiasm to work, because everything that he will get from his salary will only go in paying his debts. Seeing that, that's never productive at all. You don't work to live and enjoy the fruits of your labor, but you end up paying them all to get your debts fully paid.

Yes, the world needs debts at some point, but never to the extent of making it a source of motivation so that people won't resort into being lazy and unproductive. It should not be like that, but setting a positive goal should always be the main reason why people should work so hard so they can enjoy their bright future ahead of them.

Let me ask you. You are as a person that is wrote this, did you not function properly as you are not on any debt? Literally, no nation can be debt free because you don't have everything you need and a compromised solution of debt has to be reach to get access to some of those resources you don't have and if you don't, you will be playing with hyper inflation, this is  the reason why you UK are now in another debt and imn not sure if they are indeed debt free in the first place.

I'm addition, I want you to know that we have majority of people that you see that you think are wealthy people don't own some of the assets they claimed. If check and balance is been done to their wealth, trust me 1/3 of their wealth will end up as debt because is either some are been used as collateral for loans, some are been owned by joint business with one CEO and many more, the richer a person is, the complex it's for the person and so it's for even the economy.

Everyone doesn't expect to have debt even though the economic situation is going down, there are many negative factors related to debt because they have to have a fixed monthly income and they have to pay high loan interest, so I also agree that debt is not a motivation to work hard because without debt we are too try hard to earn enough monthly income. Anyone hopes to achieve financial freedom without being tied to debt, so we must take advantage of all work opportunities to increase our income.

However, there are some people who have succeeded in building a business with borrowed capital, but believe me, only some people can be successful with this plan because the loan carries the risk of losing the collateral if they cannot pay off the loan.

Debt can be a burden on a person's life even though he has worked hard but cannot meet his needs. This is because the income earned is not balanced with his expenses.  Everyone certainly hopes to be free from debt so they can have a better life.  I don't agree if debt is an incentive for someone to work hard. This will have a negative impact in the future, the same thing will continue to be done

Dude, you seem to be terrified of debt for investing. Even launching a firm, every economic action is a chance though. Let's get clever about debt rather than panicking over it. One can use debt as a tool rather than only a trap. Good debt is It's energy for your life. It can make you tougher, wiser, and richer. Bad debt? Like junk food, it tastes great now but can cause problems down road

Then quit complaining yourself for debt. Everybody is striving to survive; the economy is a jungle. Debt is simply a component of it. But remember, be smart about it. Don't let it control you. Control it

It depends on the persons capability there are two kind of debts the good and the bad for the bad debts people seeking an liabilities and just use those money for their luxuries things and does return a good profit at all just a casual spending of money for different reason because they are capable to pay off, just to flex to their friends and social media and personal use, in the other hand people doing a good debt which they are creating an additional assets that gives them more money and those created assets are the one who pay for their debt for the long run once they pay off the profit now comes.

However, I don't agree with what you said because going into debt to invest is very risky even if you understand calculations, but in the world of investment, nothing guarantees the correctness of predictions. Meanwhile, we have to pay our debts on time, so if our investment does not go according to plan it will cause you to fail to pay your debts.

So it is very unwise if we go into debt just to invest, unless we go into debt to do business, but of course with the correct calculations. Because business and investment are different activities, investment has big profits but also has big risks, different from business.

Regarding the OP's statement, I also don't agree, by being in debt we are not lazy. This is just a matter of mindset, the fact is that life cannot be enjoyed if there is too much debt, especially if the debt is not for something productive but consumptive.