Taking loans. Pros and cons...
By Masssko
@Masssko (238)
Estonia
June 6, 2010 6:22am CST
I would like to have some different well-reasoned opinions about taking loans. Me personally have never taken one even the smallest loan, and don't plan to do so in future. My reasoning is below.
1. There is no thing I might need so desperately, I have to lend money.
2. For the case I need something very badly, I have my savings.
3. My earnings aren't much, but I still save a part of it for cases from paragraph 2.
4. I always can count on whole amount of money I earn.
5. I'm not afraid to lose my work so much, because I have no obligation to pay back loans.
6. When the economical crisis hit the world, I was the only of my friends, without any debts whatsoever.
If you have any different opinion to this questions, please do share. I'd like to get the complete picture of how the thing really works.
1 person likes this
3 responses
@Cutie18f (9546)
• Philippines
6 Jun 10
You do live such a hassle-free life. I like that. Debts and loans can really be a source of big problems for us most especially if we are unable to pay those loans. The things you have suggested above can serve as tips for us to improve our finances as well by getting rid of debts and loans.
1 person likes this
@magtibaygom (4858)
• Philippines
7 Jun 10
Be smart in dealing with loans. If you take a loan, be sure some else must pay for it, not you. Let's say for example, if you take a loan enough to buy a house, then buy a house and convert it into a rental apartment, and let your tenants pay for the loan (in the form of rental fees). If you take a loan to buy a car, then convert the car into a taxi cab, and have somebody else pay for that loan. That's how successful businessmen and investors deal with loans.
@Masssko (238)
• Estonia
7 Jun 10
Hey, You have a nice point here!
I have this plan for the time I end up my studies and find a stable job. Then I take a long-term loan and buy an apartment. Tenants will pay my loan, just as You have described. By the time I pay my loan back, I'm going to retire (yeah, I'll be around 60 that time). Then I sell the house, get this amount of money and start traveling until the rest of my days.
But my major concern is about short term loans people take to buy electronics, cars and smaller stuff. I can easily save up money for this, why should I pay interests to the bank?
@mokkka (881)
• Bulgaria
6 Jun 10
I am totally con loans.I know people come to some points in their lifes they need bigamount of money but that is why I also have my own savings or I prefer asking some friend to lend me money but not go the bank and take a loan because you usually pay back much bigger sum then you have spend.
