Taking loan during high inflation? - page 3.

milewilda

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Quote from: n0ne on June 08, 2022, 11:10:30 AM

Quote from: Gozie51 on June 08, 2022, 10:50:06 AM

Quote from: Botnake on June 08, 2022, 09:31:08 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.

Its indeed a gamble if you do invest on crypto with some loan money and if you do rely with those investment returns for you to pay those loan interest then its really a bad idea.
Taking a loan for the sake of crypto investment is never been a good thing unless if you could pay it on other sources then you could really be having some chance
on making profit without any depending with those main investment of yours in crypto. Always be considerate with the risk because taking anything step
something like this wont really be that effective if you dont do some precautionary.

n0ne

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Quote from: Gozie51 on June 08, 2022, 10:50:06 AM

Quote from: Botnake on June 08, 2022, 09:31:08 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.

Gozie51

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Quote from: Botnake on June 08, 2022, 09:31:08 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.

Botnake

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That's a risky move but if you trust the asset you are investing, then it should be a great idea to take a loan.

Personally, I trust bitcoin that it will excel when our economy is hit by a high inflation rate, remember, some countries that experience a hyper inflation regulate bitcoin already as one of the legal currency to save their economy, so it's a safe haven and a good investment for me.

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

Altryist

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Quote from: savetheFORUM on May 30, 2022, 02:06:31 PM

It's similar to taking loans when the price is down and there are many people who do that. While it's not the worst idea in the world, there are a few problems like what would happen if you need to pay the interest and the economy/price goes further down. Also there are times when the expected return is less than that of the due interest and that causes a lot of problems.

According to me, loans must be taken taking into consideration the profits you are going to make with it. Just because there is inflation doesn't sound like a great reason for taking loans. If you have done the calculation and your income will be higher than the interest, then go ahead and take the loan!

Creditors will take into account all the points that will relate to their profits, you can be sure of this. The moment of high inflation will most likely be spelled out in the paragraph on force majeure, and in this case an additional indexation on interest paid for the use of money can be applied. A loan is always higher risks, especially if they are taken for high-risk investments in cryptocurrency.

blockman

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Quote from: Pujangga on June 07, 2022, 11:11:18 PM

Of course this depends on the goal, most people take loans to fulfill their hobbies and interests such as buying cars, gadgets and so on, of course this is a difficult burden because when they want to pay installments and their needs go up, they will experience difficulties and fail to pay.

Those things that people are trying to fulfill with the factors you've said are just adding them with depreciating expense. If they will just put it in cars, gadgets, and any other depreciating asset, it's not worth it to take a loan as it adds interest while the thing they've purchased isn't adding value but instead losing more value in the long run. So if you're going to buy those things, it's much better to just spend your own cash and don't use loaned money for it.

UpiwArt

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Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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?

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

Pujangga

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Of course this depends on the goal, most people take loans to fulfill their hobbies and interests such as buying cars, gadgets and so on, of course this is a difficult burden because when they want to pay installments and their needs go up, they will experience difficulties and fail to pay.

The Author

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Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

But the question is what if you do not own enough money for investing? can you take a loan and invest?

I wouldn't take or even recommend taking to someone else because taking a loan to begin with already an emotional stress or tie as you would always have it at the back of your mind that you're owing wherever you may go.
Secondly, using such loans to invest in cryptocurrency is considered very unwise from my own end. because no matter how good of an analyst you are, cryptocurrency would always shock you by taking a more positive turn than expected or a negative altogether.
And at the end of the day you would still have to pay your Lender and with the high inflation as fore-mentioned, that would be a massive loss.

Sir Legend

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When inflation occurs, there are actually many opportunities, there will be many needs that skyrocket so that by looking for substitute materials it will make us successful, taking a loan is a good idea to develop a business so that it grows rapidly during inflation, there are many opportunities during inflation, the best thing is to follow the trend which is popular.

og kush420

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Quote from: ChiBitCTy on June 05, 2022, 10:33:58 PM

I think one should only ever be taking a loan for investments if they’ve got a considerable amount of income that seems to be set to be coming in for some time to come. Taking any sort of loan is risky in and of itself but to take a loan for some volatile investments Im not sure is a good idea regardless of interest rates. I suppose size of loan plays a big factor.

I agree with you. One should risk one's own money rather than taking loan and paying interests as well.
I would rather not indulge myself in loans and unnecessary debts. The point above is well stated that one should use the extra money for this. There is no end to inflation rather earn lots and lots of money. JUST!

Alisha-k

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Taking a loan for investment is only advisable if there is enough duration to pay back lets say a long term loan. Inflation and volatility goes hand in hand but for a high salary earner the risk can be considered but it must be a worthy risk. one thing i will forever kick against in taking loan for investment is never invest in a project that has given high ROI already no matter how tempting it appears

ChiBitCTy

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Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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 think one should only ever be taking a loan for investments if they’ve got a considerable amount of income that seems to be set to be coming in for some time to come. Taking any sort of loan is risky in and of itself but to take a loan for some volatile investments Im not sure is a good idea regardless of interest rates. I suppose size of loan plays a big factor.

og kush420

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Quote from: Wong Gendheng on June 01, 2022, 10:27:06 PM

Taking Loan is an instant solution to overcome inflation, but we must be aware that loans can make us sick and bankrupt if we do not have a strategy to use the money, if we already have a clear plan for example to make a business or increase investment then taking loans is the right idea .

high prices are pushing up the cost of living and thereby erodes the purchasing power of the the consumers. High cost of borrowing strangles demand in interest rate-sensitive segments however this fiscal inflation is more hurting than before. In the UK the bank of England has warned that inflation might reach 10 percent within months as the process of fuel and food put pressure on household budget.

Wong Gendheng

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Taking Loan is an instant solution to overcome inflation, but we must be aware that loans can make us sick and bankrupt if we do not have a strategy to use the money, if we already have a clear plan for example to make a business or increase investment then taking loans is the right idea .

lalabotax

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Quote from: jaberwock on June 01, 2022, 04:50:08 PM

I don't know how people are so calm about taking loans. I mean when I consider taking a loan, it's almost the last thing on my mind. I would rather sell my car or bike and arrange money because having a loan on my head is not something I am very calm about. It's hard to imagine what would I do if I take a loan, especially non-collateral loan from a friend or family and then struggle to pay it back on time.

People may feel calm because they only think about the possible profits to get from their investment by using the loan money. They never think about the risks that possibly happen in the future, they keep their optimism in using the money. But this is the wrong way, it is like to avoid thinking about the worst scenario to happen in our investment. Some loans may have a return deadline, they will panic when they realize they have no longer time to collect money to return the loan. So, they won't be calm forever, they must be like you to always think about how to return the loan money.

jaberwock

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Quote from: Sir Legend on May 27, 2022, 10:17:24 PM

When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.

I don't know how people are so calm about taking loans. I mean when I consider taking a loan, it's almost the last thing on my mind. I would rather sell my car or bike and arrange money because having a loan on my head is not something I am very calm about. It's hard to imagine what would I do if I take a loan, especially non-collateral loan from a friend or family and then struggle to pay it back on time.

Quote from: Naficopa on May 28, 2022, 12:16:45 PM

I would try to play safe. And I would not put myself in unnecessary trouble.
But there are people who love taking a risk and they would go get it. The bigger the risk the higher the profit is. or the loss.

I have the same mindset, I see loans as a potential problem later on. It might be because I have seen my father struggle with loans all my life and it has subtly impacted my way of thinking.

og kush420

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Quote from: savetheFORUM on May 30, 2022, 02:06:31 PM

Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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?

It's similar to taking loans when the price is down and there are many people who do that. While it's not the worst idea in the world, there are a few problems like what would happen if you need to pay the interest and the economy/price goes further down. Also there are times when the expected return is less than that of the due interest and that causes a lot of problems.

According to me, loans must be taken taking into consideration the profits you are going to make with it. Just because there is inflation doesn't sound like a great reason for taking loans. If you have done the calculation and your income will be higher than the interest, then go ahead and take the loan!

I think we should take the loan when it is needed the most.
Impulsive borrowing is like an impulsive buying and it's hard to get rid - sometime the interest rate rise and fall to such an extreme that one gets sick for losing a huge amount of investment,

savetheFORUM

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Quote from: Leviathan.007 on May 14, 2022, 12:38:38 PM

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?

It's similar to taking loans when the price is down and there are many people who do that. While it's not the worst idea in the world, there are a few problems like what would happen if you need to pay the interest and the economy/price goes further down. Also there are times when the expected return is less than that of the due interest and that causes a lot of problems.

According to me, loans must be taken taking into consideration the profits you are going to make with it. Just because there is inflation doesn't sound like a great reason for taking loans. If you have done the calculation and your income will be higher than the interest, then go ahead and take the loan!

Naficopa

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Quote from: Sir Legend on May 27, 2022, 10:17:24 PM

When inflation occurs, the best thing we can do is make an income post, currently there are many options for doing business and the easiest thing is to become an agent or reseller, social media helps us to actively market the products we sell, and loans can be a good solution because can increase income.

I would try to play safe. And I would not put myself in unnecessary trouble.
But there are people who love taking a risk and they would go get it. The bigger the risk the higher the profit is. or the loss.

Topic: Taking loan during high inflation? - page 3. (Read 969 times)