Topic: Quit borrowing - page 21. (Read 2489 times)

There is a good debt and bad debt, so it is really depends on you on how will you identify a specific debt. I'll give you a fine example: There is a situation that I want to make investment because I saw a big opportunity that can give me huge returns in the future and the problem is my money is not enough, the only way for me to have that money is to borrow money from the banks or from someone else. That situation is considered as good debt because it is a debt that can give me returns or profits. It can generate cashflow that can increase my income and can help me to achieve my goals. Capitalists, businessmans and entrepreneurs are using debts in order for them to save taxes wherein they can make more profit in their businesses. Let's go with the bad debt, I'll give an example of a bad debt. The situation is your friends invited you to a beach outing or some drinking night but you do not have money in order for you to participate in that kind of event, then you suddenly remember that you can borrow money from someone else in order for you to go in that event. That kind of borrowing is a bad debt, a deadly debt that will lead you to more sorrow and suffering. That kind of debt is something that we should avoid especially if your goal is financial freedom. Always remember the consequences that you can get by borrowing from someone else and use it in a bad way.

The temptation to borrow money is currently increasing, if 10 years ago people had to use collateral to borrow money but now only with an identity then we can easily get a loan quickly, but we must be able to hold back our emotions so that the loan doesn't make it difficult for us.

If you are borrowing for business, it is not bad but make suy the repayment shouldn't be long. Don't keep the loan very long, but if is for personal use then I will not advise you to take the loan because it is bad. And also you have to cross check your business income before embarking on the loan. If your income is not good enough then you don't have to take it.

Let me say that anyone who is in need of loan for investment is not hundred percent right and its not hundred bad, it depends on the level of your income to pay back when the investment is not favourable, I can advice someone to pick up loan for investment but I will ensure that you have to pick up a loan you can return without the investment you want to put the investment directly to, so therefore I believe that loan can help to elevate someone when theirs profit and loan can make someone to back to the root one. So check your income before taking a loan

You are correct at some point, because we get into trouble when we spend more than we earn and think we can pay it off in the next pay, which means the cycle continues because you will be short that time. Though there are really others like poor people who borrow money, it's because their source of income is not permanent, like when they didn't earn anything and had nothing to eat, so they needed to borrow money to buy food. But again, if you earn money the next day, for sure it is not enough because you need to pay back your borrowed money.

Borrowing money is really a burden, but if we don't have a better solution, borrowing is not so bad, as long as we control it well, there will be no problem. I used to borrow money because my business failed and that was the last solution I could do, it was very difficult to pay interest and principal but thanks to that loan I solved a lot of things when my business failed. If I didn't have that loan, I would have sold my house, so it can be said that a loan is not too bad in some cases.

The problem with loans is that they are made to fulfill a lifestyle, not for emergencies or for activities that can make us benefit from it, for example by starting a business, because not everyone has the ability to finance their business from the start, they need a loan and the loan will be a production loan because you will get profit from the business being run so you will be able to pay off the debt.
Currently, there are many applications that make it easy for people to borrow, even marketplaces provide pay later so that it will make it easier for people to shop using this feature and lose control because they have spent beyond their means and loans like this that must be avoided are not productive loans.

If I want to, I prefer to avoid loans because we know that loans have extra interest, but for someone like me, whose salary rate is too low, it is really necessary to borrow money to use in online businesses. It is better to think first if there are things that need to be financed or if there is a lack of capital for the business so it is necessary to take out a loan. Be smart in using the money from the loan, it is better if we use it in businesses or earnings so that we can return the money we owe sooner or at the right time.

Borrowing to spend is bad and a disgusting habit to have as an individual, borrowing to spend can only leave you in debts. We have to learn to spend below our salary. Your expenses should never be above the income you generates and if you want to spend more then you improve yourself so you can earn more and that'll reduced your rate of borrowing money.

While borrowing to spend is wrong but borrowing to invest in yourself or your business isn't wrong. If you can stay away from borrowing entirely, that'll be great but if you can't then the only time you should be borrowing is when you want to invest in something that'll generate income for you and can pay off the debt.

Many people saying borrowing a money isn't a bad thing as long as we can manage it, but if you have a choice it's better to never borrow any money and looking on the other way to get money. Some people can't manage their loan and anything can happen outside of our plan in order to repay the loan, so it will increase the risk you will fail to repay back your loan.

I think even people are working and get paid lower than the average salary, they can still survive without need to ask a loan, it's just a matter of their lifestyle.

I can understand if the person who is borrowing money is someone who is really desperate, and indeed the economic situation is really down. people with a background like this are understandable.

but what happens if people who are well off still borrow money. not a few rich people, but have a sizable debt, it may result from increasing their business capital or when opening a new branch of their company. it's all still understandable, because this is a business matter.

but what if there are people who borrow money just to look stylish with expensive clothes, expensive food, and luxurious vehicles. this kind of thing is not exemplary, it's no longer a waste, it's more than a waste.
and all of this must be avoided by everyone, if you do not want to be in debt. because don't let pride lead you to misery. just enjoy what is there, don't force it if you can't afford it.

I don't know if you're being sarcastic but that's not the American dream.

What Is the American Dream?


The problem in its version of the last decades is that the dream has been fuelled by debt. The US has been exporting its dollars which have been used as a global reserve and in return has been able to consume many goods and services that it did not produce, something that is beginning to change.

On a personal level, getting into debt is not always negative, it is negative for consumption, which is what most people get into debt for. On the other hand, borrowing to invest can be reasonable and provide leverage, making it possible to reach goals more quickly, and many companies do so.

Being in debt is the American Dream. And been that way for a while. Fueled with cheap money and near zero interest rates why are you surprised.

The latest generation has never learnt what a high interest rate environment means. Last time rates were high was 20 years ago and most back then we’re all going to remember. Now people got a little overboard with their debt such as housing debt and auto loans.

 Borrowing money from bank or somebody to feed your stomach is not good but you can borrow money to improve your business, which is advisable but ensure you work hard to pay back the loan so that it will not cause more trouble for you in future. I will not advise anyone to borrow money to invest in Bitcoin or cryptocurrency, because Bitcoin price is unpredictable which the price can pump at anytime to help people to get what they want at the moment, and it can also dump to make people hold more than a year to avoid lost. Just invest the little money you have now on Bitcoin than to borrow Because borrowing will never give you peace of mind whenever the price is low in the market.

when people take out a loan. they have to then put money aside from their limited income to repay their loan ongoing afterwards. meaning they have to waste less money to afford the repayments

people need to pretend they already have a loan and put money aside to save. pretending they are making repayments where instead they are actually accumulating savings. thus then not need a loan because they have accumulated savings

dont just spend your money and then say its ok if my household items break i can take out a loan because i can afford the repayments.. instead act as if it already broke to get your mind into putting money aside as if you are repaying a loan but instead saving that money. so that when it does actually break the money is there..

if you want to invest that money to make it self accumulate to more value to speed up the benefits of saving. put it into assets that are at their LOW. dont invest in things that are highly priced compared to recent history buy low to then sell high

bitcoin is at a low compared to its 2 year history, where as gold is at a high. so best bet is buy bitcoin not gold right now

Yes, I admit it, but it still depends on you, If you able to manage it, you can be a free man without debt. I have experience with lending when still have a credit card. That such cards where always bring me to lend anything I want, but after that my bills are piling up, and Almost can't afford it. The best solution is, close it.

It's the same like today, If I have cash, I will spend for unnecessary purposes, so extravagant, because of that I keep it in bitcoin, and store it in hard-to-reach places, so when I want spend for unnecessary purposes, be shy to do that.

A lot of people are also underpaid, that's also one of the very first reason why debts are inevitable. This has been always the case here in my country. Workers were underpaid and they work 8 hrs or more for 6 days a week, leaving them no time to look for another alternative/side hustle to earn extra income.
Borrowing isn't always bad, because some people just have no choice in order to survive.
Rapid inflations and slow salary increase are also one of the reasons.

Borrowing as it is has its own consequences and excess of it is not what i fancy. Borrowing when you have a remedy or pay back plan is ok but when you are hoping or depending on a means when you are not sure of it is very much not alright. I believe most times it is not as a result of satisfaction people borrow but at times they encounter emergencies which results to their urgent request for financial aid or assistant to solve their problem immediately.

Borrowing  in terms of setting up a profitable business is not bad. As long as you have set your repayment plan depending on your terms and conditions, it is aright to go with as the business venture for which the loan was taken is profitable enough to repay the loan, running cost and every other financial commitment to service.

Borrowing is not a bad thing, what is bad is borrowing beyond your means and also not knowing how to pay it back. Borrowing is the last solution if there is no other solution and it is supported by having the ability to pay or having a steady income such as having a job and salary, and this can repay the loan according to the agreement.
and borrowing to create a business, asset or for any investment it is a good option in my opinion, as long as you choose for a profitable purpose and have knowledge and so on among the goals I mentioned earlier. And still have to have income or salary to be able to pay it and also borrow according to ability.

When credit cards were first introduced, it only took few months for all those creditors specially who has a debt for no particular reason had spent their lives in misery. Personally, I cannot afford to have a debt specially I don't have a big reason to. Aside from that, I didn't have that much income in order for me to receive loans or decide getting in debt. In our country, it is much difficult once you get inside that non ending cycle of payment, every month you'll get exhausted by only paying those interest leaving nothing on your salary. I have seen so many people on my neighborhood doing the same thing over and over again, and to add more salt on their wounds, even if you say that by living below your means will somehow help you, to be precise, no coz sometimes the most basic meal you can afford is already equivalent to an expensive meal. The primary problem in our country is due to lack of financial support and management in farming areas which makes the basic necessities like vegetables very expensive. In this regard, most victims of those non ending cycle of debt are farmers due to lack of capital for their farms, and usually all our goods are imported out of the country.

I also understand that getting in debt is not really a wise thing to do, but there are some circumstances that this is the only solution they have in mind in order to survive.