Taking loan during high inflation? - page 2.

og kush420

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Quote from: GelatikKembar on June 12, 2022, 02:58:40 AM

i
Besides that, with the current bear market conditions, I don't think borrowing money to trade or invest is not the right decision,
we must be wise in making decisions because if we make a little mistake then it will cost us money,
but what is clear is that everyone has their own decisions and they must be responsible for it themselves

Indeed I think twice before borrowing money. TO me having someone's money in my wallet seems to have burden on me.
I want to invest and earn but with my money for which I am not answerable to anyone. That is the big freedome - I want to enjoy!

GelatikKembar

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Quote from: Kimonoe on June 12, 2022, 01:29:36 AM

Quote from: og kush420 on June 11, 2022, 04:02:41 PM

Quote from: STT on June 10, 2022, 05:48:51 PM

We have high inflation right now and you have more then a hint why its still dangerous to take a loan. There is great upset and possible volatility and instability to the economy while that inflation takes place, not every person can be sure of repaying the loan so confidence is low. Low confidence across an entire economy leads to low growth feeding the problems that might be causing the inflation to begin with.
There is no ideal isolated scenario for this, the study and theory of taking the loan is quite different from the reality unfortunately but its not incorrect still.

Do not invite trouble. Play safe. Loans are not the way to become rich again.
How ever the hidden charges are sometime too hard to be back on the feet once again. Better be safe than sorry.

Indeed, by relying on loans we have a double risk, considering that we will not know for sure market movements, plus we have dependents on our loans. therefore if you borrow to just gamble by relying on luck, then this is very unsafe. Many people have experienced frustration because of their expectations of getting a lot of money in a short time, while they only rely on luck

Besides that, with the current bear market conditions, I don't think borrowing money to trade or invest is not the right decision,
we must be wise in making decisions because if we make a little mistake then it will cost us money,
but what is clear is that everyone has their own decisions and they must be responsible for it themselves

Uang_kartal

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betfury

Quote from: livingfree on June 11, 2022, 06:40:24 PM

~Snip~ On the other side, the loaner is the one that will be rich if the rates have increased. But honestly, who on Earth is looking to take loans and will think that he's going to get rich out of it? Well, maybe by taking loans and using it for business purposes, I guess that's the idea you're trying to convey.

true bro. I've heard that there are some people who do business lending money, he doesn't care for what and his abilities, the logic is simple if the consumption of funds in liquidity is not directed (try it) then where to return it to the owner.
if for a capital and supporting business foundations, I think the reserve funds are legitimate and will be more useful.
if crypto currency and everything in it is started by borrowing it will start a fire. Until now we don't know how long the market will recover. We can't stand cold funds anymore because it's been bearish for a long time.

Kimonoe

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Quote from: og kush420 on June 11, 2022, 04:02:41 PM

Quote from: STT on June 10, 2022, 05:48:51 PM

We have high inflation right now and you have more then a hint why its still dangerous to take a loan. There is great upset and possible volatility and instability to the economy while that inflation takes place, not every person can be sure of repaying the loan so confidence is low. Low confidence across an entire economy leads to low growth feeding the problems that might be causing the inflation to begin with.
There is no ideal isolated scenario for this, the study and theory of taking the loan is quite different from the reality unfortunately but its not incorrect still.

Do not invite trouble. Play safe. Loans are not the way to become rich again.
How ever the hidden charges are sometime too hard to be back on the feet once again. Better be safe than sorry.

Indeed, by relying on loans we have a double risk, considering that we will not know for sure market movements, plus we have dependents on our loans. therefore if you borrow to just gamble by relying on luck, then this is very unsafe. Many people have experienced frustration because of their expectations of getting a lot of money in a short time, while they only rely on luck

livingfree

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Quote from: og kush420 on June 11, 2022, 04:02:41 PM

Do not invite trouble. Play safe. Loans are not the way to become rich again.

On the other side, the loaner is the one that will be rich if the rates have increased. But honestly, who on Earth is looking to take loans and will think that he's going to get rich out of it? Well, maybe by taking loans and using it for business purposes, I guess that's the idea you're trying to convey.

Quote from: og kush420 on June 11, 2022, 04:02:41 PM

How ever the hidden charges are sometime too hard to be back on the feet once again. Better be safe than sorry.

Hidden or not, charges can't be skipped and that's given if you've taken a loan. That's how it goes and what I think about these loans is that if you're in need of cash and you're starting to prep yourself for the upcoming recession, you'll be needing cash and there could be people that will use it as their stored cash.

Well, that's very much possible.

og kush420

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Quote from: STT on June 10, 2022, 05:48:51 PM

We have high inflation right now and you have more then a hint why its still dangerous to take a loan. There is great upset and possible volatility and instability to the economy while that inflation takes place, not every person can be sure of repaying the loan so confidence is low. Low confidence across an entire economy leads to low growth feeding the problems that might be causing the inflation to begin with.
There is no ideal isolated scenario for this, the study and theory of taking the loan is quite different from the reality unfortunately but its not incorrect still.

Do not invite trouble. Play safe. Loans are not the way to become rich again.
How ever the hidden charges are sometime too hard to be back on the feet once again. Better be safe than sorry.

STT

legendary

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We have high inflation right now and you have more then a hint why its still dangerous to take a loan. There is great upset and possible volatility and instability to the economy while that inflation takes place, not every person can be sure of repaying the loan so confidence is low. Low confidence across an entire economy leads to low growth feeding the problems that might be causing the inflation to begin with.
There is no ideal isolated scenario for this, the study and theory of taking the loan is quite different from the reality unfortunately but its not incorrect still.

Markinzo

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Taking loan to invest in business or real estate housing is very much meaning decision to go with knowing full well that on the long run at the end of it all the proceeds will be used to fixed the loan and whatever interest that comes with it.

It's only wrong and not advisable in anyway , for someone to go taking loan to use in investing into crypto no matter how juicy profitable the coin might promise. It is always an unpredictable situation and this can ruine one's career as you may spend many years of your life paying loan for money you never profited from.

Another mistake that people make which the OP didn't mention though, is taking a loan to pay another loan. Like What does such situation leaves you with?

Fatunad

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Quote from: teosanru on June 10, 2022, 12:14:21 PM

Quote from: Hamphser on June 09, 2022, 04:28:19 PM

Quote from: teosanru on June 09, 2022, 12:50:30 PM

Quote from: Leviathan.007 on May 14, 2022, 11:38:38 AM

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I don't understand what is the logic behind this? The basic mathematics is that you have to invest in any asset which will give you a better interest rate than what you are paying for your loan or borrowing only then it can be said that it's profitable otherwise you are just struggling to pay interest, second thing here will be the cash flow loan interest generally you have to pay in cash while returns on investment you might not get in cash those will be reinvested. So this is financially wrong, also in times of high inflation you will find interest rates are also pretty exorbitant so technically makes no sense to do this.

Profit wise then we do know the benefits or advantage thats why some people do really take risk on getting a loan because they do know those probabilities but considering yourself putting some funds or investment in

crypto which wont really make out any assurance of profits but once it does then we know that it could give out those enormous profits which is something that you cant find on any investment or to those typical.

Its not that recommended on taking up some loan but there are instances or situations which there are exemptions or does really need such action.

I don't agree with you one this. Infact if you see in longer term Cryptos has always assured you profit (obviously if you were wise enough to keep everything in safe coins and not shitcoins). So this is assured that you will repay the loan and end up in profit. The only doubt is the cash flow. You might have to repay the loan at a time when there is market collapse, not to forget regular interest payments are due which you obviously won't be able to pay in bearish times.

Deal with the interest because its been there since from the start and you are fully aware of it before you do take a loan and on the time that you had applied then you had just
basically accepted with those terms which i dont see the thing or right action yet you are the ones who had dealt on it which you should accept the risk on paying those interest
whether its a bull or bear market.Its up to you or its up to your own choice as long you do agree with the terms and conditions then you wont really be having any
choice but to pay those interest no matter what.

teosanru

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Quote from: Hamphser on June 09, 2022, 04:28:19 PM

Quote from: teosanru on June 09, 2022, 12:50:30 PM

Quote from: Leviathan.007 on May 14, 2022, 11:38:38 AM

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I don't understand what is the logic behind this? The basic mathematics is that you have to invest in any asset which will give you a better interest rate than what you are paying for your loan or borrowing only then it can be said that it's profitable otherwise you are just struggling to pay interest, second thing here will be the cash flow loan interest generally you have to pay in cash while returns on investment you might not get in cash those will be reinvested. So this is financially wrong, also in times of high inflation you will find interest rates are also pretty exorbitant so technically makes no sense to do this.

Profit wise then we do know the benefits or advantage thats why some people do really take risk on getting a loan because they do know those probabilities but considering yourself putting some funds or investment in

crypto which wont really make out any assurance of profits but once it does then we know that it could give out those enormous profits which is something that you cant find on any investment or to those typical.

Its not that recommended on taking up some loan but there are instances or situations which there are exemptions or does really need such action.

I don't agree with you one this. Infact if you see in longer term Cryptos has always assured you profit (obviously if you were wise enough to keep everything in safe coins and not shitcoins). So this is assured that you will repay the loan and end up in profit. The only doubt is the cash flow. You might have to repay the loan at a time when there is market collapse, not to forget regular interest payments are due which you obviously won't be able to pay in bearish times.

qwertyup23

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Quote from: n0ne on June 08, 2022, 10:10:30 AM

Quote from: Gozie51 on June 08, 2022, 09:50:06 AM

Quote from: Botnake on June 08, 2022, 08:31:08 AM

The good news is bitcoin is on bearish mode now, you can buy more with the money you will borrow.

Borrow you said huh.... Lol. At any point it is not a wise decision to borrow money for cryptocurrency investment. Bitcoin being a bear and you can't say if it is at the bottom yet and it may keep sliding down It Is not a very good advise to use another person's money to invest in bitcoin. This should be a disclaimer for newbies and people thinking this way also.

Cryptocurrency investment is high risk involved unlike the traditional market. Every country is experiencing the hardship out of the rise in price of oil and natural gas. Almost every country is experiencing inflation and the GDP have dropped drastically. The interest rates too have increased alot. By this time taking a loan for an investment into cryptocurrency is like a gamble. So, good is to stay away from loan for now.

Though this may be the case, investing into cryptocurrencies can have positive effects if you truly aim for long-term investment.

Given that the nature of cryptocurrencies are deflationary and limited in character, you can purchase and HODL them for long-term. As a rule that can be applied to all investments, only invest the amount that you are willing to lose. In addition, always have a clear goal and plan towards your investments if you truly plan on profiting in the end. It is also advisable to create a contingency plan to know the minimum/maximum profit or loss you are wiling to shoulder.

barbara44

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The tricky part is that when you are getting a loan is the fact that you are paying high interest rate as well, it is not going to be that simple. So, let’s assume that in regular periods, it is like 3%, and the inflation is 2% for example, this is just an example, during high inflation period, it will be 10% interest rate, and 7% inflation.

So, you are right that if it goes on like that, then you will profit because you will be in a situation where the money you pay will not be that much after a while, fixed rate will allow that. But at the same time, when we are talking about something regarding inflation dropping down, meaning rate could go down as well, which would ruin your plans if it happens.

Hamphser

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Quote from: teosanru on June 09, 2022, 12:50:30 PM

Quote from: Leviathan.007 on May 14, 2022, 11:38:38 AM

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I don't understand what is the logic behind this? The basic mathematics is that you have to invest in any asset which will give you a better interest rate than what you are paying for your loan or borrowing only then it can be said that it's profitable otherwise you are just struggling to pay interest, second thing here will be the cash flow loan interest generally you have to pay in cash while returns on investment you might not get in cash those will be reinvested. So this is financially wrong, also in times of high inflation you will find interest rates are also pretty exorbitant so technically makes no sense to do this.

Profit wise then we do know the benefits or advantage thats why some people do really take risk on getting a loan because they do know those probabilities but considering yourself putting some funds or investment in

crypto which wont really make out any assurance of profits but once it does then we know that it could give out those enormous profits which is something that you cant find on any investment or to those typical.

Its not that recommended on taking up some loan but there are instances or situations which there are exemptions or does really need such action.

BITCOIN4X

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Quote from: doomloop on June 08, 2022, 11:01:03 PM

They say that the bear is the perfect time for investing but what if what you are saying is true? What if the market will just become worst and more worsen? We cant be like that for a long time because we have a loans to pay.

In a market situation like this I don't think borrowing will be very profitable. The worst risk is that the loan will fail due to falling asset prices, this will be a big problem for the borrower. It may be more realistic to think that a loan can be made securely if the borrower and the owner of the fund both agree on the consequences.

Quote from: doomloop on June 08, 2022, 11:01:03 PM

We can use the bear as an opportunity for buying only if we have a money of our own that is not important so that we won't worry if how long we can make a profit and it's also okay to us if ever we lose that money.

Of course I would agree with this choice because all investment risks are at our own risk without worrying about loan repayments.

teosanru

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Quote from: Leviathan.007 on May 14, 2022, 11:38:38 AM

Today I had a meeting with a friend of mine who teaches economics at university.
He believes when the inflation rate rises that's profitable to take a loan even with high interest to buy other assets such as gold, bitcoin, and even real estate. On one side of this theory, we usually suggest people never invest money that they can't afford to lose and don't invest the money that does not belong to them for many reasons. These are golden tips and useful in any market.
But the question is what if you do not own enough money for investing? can you take a loan and invest?
Because if you look deeply into charts of inflation rates in most the countries you can easily understand taking loans even with high interests could be useful and profitable.
Personally, I don't suggest doing this because using other people's money will put me under stress and this can have negative effects on my decisions. What do you think?

I don't understand what is the logic behind this? The basic mathematics is that you have to invest in any asset which will give you a better interest rate than what you are paying for your loan or borrowing only then it can be said that it's profitable otherwise you are just struggling to pay interest, second thing here will be the cash flow loan interest generally you have to pay in cash while returns on investment you might not get in cash those will be reinvested. So this is financially wrong, also in times of high inflation you will find interest rates are also pretty exorbitant so technically makes no sense to do this.

Awwal08

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Taking a loan at a period of high inflation, is not my opinion, is the largest risk, because buying anything during that time is like preparing to pay back the debt plus interest. During that time, I am not in favor of taking a loan.

Lubang Bawah

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High inflation is dangerous if we take loans at banks, usually banks always follow the trends that are happening so that it can make our debts increase significantly, when taking loans then the best thing is used for business or business capital, because if we are not good at managing debt Then it will make us regret.

iv4n

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Quote from: Gozie51 on June 08, 2022, 09:50:06 AM

Quote from: Botnake on June 08, 2022, 08:31:08 AM

The good news is bitcoin is on bearish mode now, you can buy more with the money you will borrow.

Borrow you said huh.... Lol. At any point it is not a wise decision to borrow money for cryptocurrency investment. Bitcoin being a bear and you can't say if it is at the bottom yet and it may keep sliding down It Is not a very good advise to use another person's money to invest in bitcoin. This should be a disclaimer for newbies and people thinking this way also.

In this stadium, we can say that people who took loans to invest in crypto are in profit! More specifically people who did that before 2020! It's a risky investment, I agree with that part, but if you believe in something if you plan to invest in the long run then it's a different story! Now it's a bearish period, and the price can drop more, who knows, to take advantage of "buy the deep" you will have to have money at the specific moment, if you don't have it I guess it's ok to take one that you will repay from your salary in a year or two, and you will have your investment for the future!

judaspriest

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Quote from: n0ne on June 08, 2022, 10:10:30 AM

Quote from: Gozie51 on June 08, 2022, 09:50:06 AM

Quote from: Botnake on June 08, 2022, 08:31:08 AM

The good news is bitcoin is on bearish mode now, you can buy more with the money you will borrow.

Borrow you said huh.... Lol. At any point it is not a wise decision to borrow money for cryptocurrency investment. Bitcoin being a bear and you can't say if it is at the bottom yet and it may keep sliding down It Is not a very good advise to use another person's money to invest in bitcoin. This should be a disclaimer for newbies and people thinking this way also.

Cryptocurrency investment is high risk involved unlike the traditional market. Every country is experiencing the hardship out of the rise in price of oil and natural gas. Almost every country is experiencing inflation and the GDP have dropped drastically. The interest rates too have increased alot. By this time taking a loan for an investment into cryptocurrency is like a gamble. So, good is to stay away from loan for now.

If you look at the news and data some time ago, indeed many countries experienced inflation.
certainly not an easy job to stabilize and commodity prices have also increased,
seeing the current conditions is certainly not the right time to make a loan for investment in crypto

doomloop

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Quote from: UpiwArt on June 08, 2022, 06:42:36 AM

Take a loan in current market conditions that are not good or are getting worse with the aim of investing it
Very risky
while investing with non-loans is also risky, especially by relying on loans, but it depends on your way too because it must be considered carefully and unanimously

They say that the bear is the perfect time for investing but what if what you are saying is true? What if the market will just become worst and more worsen? We cant be like that for a long time because we have a loans to pay.

We can use the bear as an opportunity for buying only if we have a money of our own that is not important so that we won't worry if how long we can make a profit and it's also okay to us if ever we lose that money. A high interest rate is good only if we are the ones that lend our money but if we are the ones that take out loans, that means we are going to pay a little higher as interest is like a service fee.

Topic: Taking loan during high inflation? - page 2. (Read 979 times)