Topic: Quit borrowing - page 22. (Read 2350 times)

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.

It's okay to borrow if you intend to pay it back and need it. Sometimes it's necessary, but you shouldn't make it a habit like you will borrow to pay another debt. It will be a never-ending cycle that you will not stop doing until it affects your life and go into some parts of your life. It will manifest somehow.

Unless you borrow for asset purchasing that could generate income, that's one of the best things you can do when borrowing money. Make more money with it.

(If you are not in a survival situation) Only get into debt to buy tools that are reasonably expected to increase your productivity which would help you to increase your income, pay your debt and be better off at the end.

(If you are in a survival situation) Ask for help, avoid getting into debt as it will spiral you down the debt hole.

(If you are getting into debt to consume) Clearly define your minimum needs to be well off and happy enough, avoid any "status" consumption, learn something new, acquire some skill that someone is willing to pay for, create something, offer something of value to your virtual o local community (hopefully bitcoiners) and try to live by your means, gradually increasing your minimum needs to be happier. Live slightly bellow your means, and you will always have something to save or spend in superfluous things. Keep yourself a sovereign individual  

This is impossible, OP. The inflation rate is growing day after day, and it's so bad in some countries that even with their salaries, average citizens of those countries where inflation is high cannot even completely fulfill their basic needs with their salaries without having to take out loans. OP, it's really not easy for some people. But the best way to help their situation so they don't incur a lot of debt is to always make a good financial plan and budget for themselves so they don't spend what they didn't really budget for. Even some wealthy people still borrow to add up, and that's when the money they have at that moment cannot completely cover what they intend to do with it. Even some SMEs (small and medium enterprises) still borrow to support their business.

Borrowing is sometimes that we ordinarily don't want to do, but most of the time it's just the only choice that one has. Let's say, for instance, that you are in need of medical refills and you don't have enough money at that time, but at the end of the month, week, or day you are expecting to receive something for work that you have already done. At this point in time, you need to borrow money so that you can pay your medical bills, and then when your wages and allowances come in, you settle your debts. This kind of borrowing is encouraging.

The kind of borrowing which is a bad habit and contributes to the economic downfall of a nation and the financial instability of a person is when an individual borrows just to satisfy his casual, unwanted, and pleasure, like when you don't even have any source of income, where you are expecting money from, and because you want to gamble you went ahead to borrow money. That kind of borrowing is sometimes not encouraging, and we advise anyone who really wants to make it far in life to stop.

Most people are in debt because they want to please other people. Some people are very competitive that they want to buy what they can not afford because they want to look like others. I have seen people take loans because they want to have a lavish wedding or birthday. The only reason one should borrow might be because of emergency or critical needs. One might decide to borrow because there is no money to but food or pay for certain basic needs such as housing, etc.

 
Taking a loan to start up a business might not be bad advice because a good venture can grow and bring profit. But it might not be the best option because business is risky. If the business fails to pay back the loan might become a problem. Many sound businesses were started or expanded using loans or other credit facilities, but many failed and put their owners into debt that they can't afford to pay.

Just watch this, How Debt Get You Rich | Robert Kiyosaki.

See, borrowing isn't bad as long as you know how to manage it and I did the same, I have also a debt but I manage to become wealthy someday.
Because I believe that debt can be a tool for creating wealth, it's important to approach it with caution and only take on debt if you have a solid plan for using it to generate income and grow your investments.

I realize that it would have been smarter to only borrow money if I had a clear plan to use it in a way that could help me make more money in the long run, such as starting a business or investing in a property that generates profit.  Borrowing for things like vacations, entertainment, or non-necessary purchases is generally not a good idea and can lead to unnecessary debt.

Borrowing is not a bad thing in and of itself as long as the borrower knows how and when to repay it. Problems begin when borrowing begins. It represents the only solution in every crisis, because it must be a circumstantial solution and not a strategy to postpone getting into trouble. There are businesses based on borrowing, but they have their own strategy that cannot be applied to individuals.
Personally, I have to borrow from time to time, but it is always for a short period and small amounts that do not exceed $2,000. And I do it when I can't find an alternative solution.

In my opinion, it's not bad to take a loan as long as we know how to pay, the only bad thing is that we don't know how to pay, the second reason is that other people are because the debt becomes a vice even if we say that we can pay the debt but it is already manipulating the borrowed money because it just goes to things that don't really help them.

   That's why it's good to borrow if it's used in a way that can produce money as well or be used in a business that you want to do.
 Because every country in the whole world is able to borrow.

An unnecessary debt actually equates to having more financial troubles, there are many that can’t coat their wants  in shape with their wages mostly because of the class they belong to. But there are others that actually borrow money for critical needs or situations that their savings can’t really cover.

 Also there are many businesses that have been built through loan or grants and they went all the way to been successful. The only way loan or borrowing isn’t advice is when it is done to acquire material stuffs that are more less liabilities rather than a source of income or a means to save ones dear life. Otherwise loans aren’t all that bad

When you're short on cash, it can be difficult to quit borrowing money.

Everyone has been there. We're short on cash and in a lot of debt, but a cover loan to get out of the red and even improve our readiness is the light at the end of the tunnel.

Blissful days? Sadly, no. It all comes down to the straightforward, yet frequently misunderstood, formula that says borrowing more money equals more debt. It is more difficult to return to black the more debt you accumulate.

The majority of us live beyond our means, which is one of the primary causes of our ever-increasing habit of borrowing money. Simply put, incomings are outpacing outgoings. It's also getting worse.

More than at any time in the past two decades, millions of Americans are spending more than they earn. Spending on credit cards, the most common type of personal debt, is estimated to be rising at a rate faster than at any other time in American history.