Is DEBT really a solution?

[wealthyhead]

---

Yes... and regarding debt/loans/consignment.. SOMEONE also said that it's a problem, not a solution.

"The rich rules over poor, and the borrower is slave to the lender." - Proverbs 22:7

"He who is surety for a stranger will suffer, But one who hates being surety is secure." - Proverbs 11:15
(about cosigning a loan)

Proverbs 6:1-11 talks about getting out of debt.

and there are plenty more sound advices from HIS manual. ^__^

amen darkcrux.. hehe.. nindot ning imong mga quotes da'

[darkcrux]

The Bible is also a good book for financial advice.. (most financial books are based ani) daghan kaayo ug topics in the Bible for sound financial planning.. If people will just read and really understand them... dako2x jud na ug tabang... and probably avoid the debt trap. ^__^

Daghan au ug companies na nagpautang, mga lenders, credit cards, etc... most of these companies are misbehaving pero in the end... it's up to us to be responsible enough to manage our debts before it manages us.

[jabez_rmc]

i agree darkcruz..

[dalmacio]

Answer to thread starter:

subject: financial problem

good debts = solution

bad debts = aggravation of the problem

-----------

good debts - strategic approach used by entrepreneurs to take advantage in their business venture

bad debts - unstrategic approach used by financially illiterate people to drown their selves to poverty

[jabez_rmc]

I just noticed these days that a lot of people rely too much on borrowing money (Debts) for most of their problems.

But is it really a solution?

my thoughts:

1. different problems means different solutions....

2. Borrowing Money ...Indeed solves a specific problems but creates a new one which is paying your debt

3.Borrowing money should be avoided unless these are good debts (meaning for investments) and emergency purposes...

e.g. 3..you buy a car....pay monthly amortization of 12K while receiving a monthly rent of 30K for rentals from transforming it to a taxi..

e.g...need payment to hurdle hospital down payment during emergency..in the event where you dont have cash on hand and have to use your credit card...mao na start to include saving for an emergency fund!!!

[Princess08]

DEBTS is not really the solution..
it is in fact ANOTHER PROBLEM that ur making!

[wealthyhead]

Recognising debt

People who are in debt often make the mistake of ignoring the size of the problem, hoping it will just go away. Unfortunately, debt has a habit of hanging around and getting worse, so it's important to recognise the warning signs at an early stage.


If you're always short on cash, or you're constantly close to your overdraft limit on your bank account, then you should think about taking some action straight away.


Ask yourself where you'd find the money if you had to make a big payment at short notice or in an emergency. If the answer is simply extending your overdraft, then you could be in danger of getting into serious debt.

[Anydowro]

DEBT is the only solution that can give you MORE problems... hahaha..

[jabez_rmc]

just remember that there is good debt and bad debt..

[wealthyhead]

just remember that there is good debt and bad debt..

ya, I think there is such a thing as good debt,
but what caused the "financial crisis" now --> BAD DEBT

and most people have bad debts